Inspired by the insurance industry, the LinkedIn team decided to calculate “job survival curve” to understand the odds of an employee staying with the company. They analysed 32 million profiles and found out that three factors are strongly linked to better retention.
- Promotions and internal mobility positively affect the retention. After three years, an employee who received promotion has 70% change to remain with the company, in contrast to much slimmer chance of 45% to stick around for someone who hasn’t changed position over these years. It is not only vertical growth, horizontal mobility also increases the odds of a person to stay. This finding is in line with Nielsen’s discovery that a lateral move increased an employee’s chance of staying for the next 12 months by 48%.
- And so does the management style. LinkedIn occasionally conducts surveys and asks members to rate companies across 14 employer value propositions. Within the companies that scored highest for “open and effective management” the chance to retain an employee after three years was 48%, while in the bottom 5% of companies there was just a 32% chance of an employee lasting three years.
- People like to be in control and hate micromanagement. The more empowered employees are, the higher the chance they will stay: according to the LinkedIn survey mentioned above, companies where “employees have influence” get longer tenures out of their workers (a 47% chance of an employee sticking with them after three years vs a 35% chance for companies with lower empowerment scores).