The main reason people change jobs is because they want to experience a challenge, not because they are unhappy with their salary.
Many of us believe that when somebody leaves a company for another, it might be because they want a bigger pay rise and feel they are underpaid. Or it might be because they are just bored.
In fact, the need of a bigger challenge is actually the main reason for people changing jobs, according to a new study by BrightHR.
One of the least likely incentives for staff moving on is wages, giving an interesting insight on how employers can reduce staff turnover.
Factors such as better work-life balance and more positive working environments are also important to workers.
In the survey of 2,000 owners of Small and Meduim-sized Enterprises (SMEs), 41% said the top reason to leave a company is to take on a more challenging role, compared to 21% who want higher pay.
The desire of an easier role was the second favourable reason at 39%, followed by a better work-life balance(38%) or a better work environment or culture (34%).
A company with better leadership (21%) and more recognition and rewards (6%) were found to be additional incentives.
Paul Tooth, Co-Founder and CEO of BrightHR, said: "We've argued that employers should pay workers the market rate - or slightly more - in order to keep them engaged and stop them looking for anotherrole.
"Clearly, however, employees leave companies for many different reasons. This research reveals is that employers do not regard higher salaries as one of the main factors for staff moving on”.
Business leaders believe the biggest financial costs caused by staff turnover is a loss of clients (45%), cost of lost output (41%), retraining fees (7%) and recruitment fees (6%).
The biggest non-monetary effects are time in training, continuity in knowledge and work practice and client confidence or impact on brand and staff morale.
As workers want more flexibility in their work lives, employers need to put less focus on cash incentives such as bonuses and offer policies such as flexible working as perks, allowing workers to achieve a better work-life balance.
BrightHR saya that employers should recognise the value of employee engagement and adopt a culture that embraces fun in the workplace.
The firm said: “Building a culture of trust that embraces workplace fun improves innovation, boosts morale, reduces absenteeism and staff churn whilst increasing productivity and profitability”.
Mr Tooth said: "Companies who want to retain staff and reduce turnover costs should look at ways to achieve a happier, more inspired and more committed workforce."