Executives Leaving It’s Probably Not the Money

Companies may want to stop throwing money at their top executives, according to a recent survey by executive search firm Korn/Ferry International.

The study finds that only 5 percent of global executives say that inadequate or inconsistent compensation is the main reason they left their last job. Rather, they cite lack of challenges or opportunity for career growth (33 percent) as the top reason they left. Twenty percent of respondents pointed to ineffective leadership, while 17 percent said the attractive job market was why they left their last jobs.

“Executives don’t leave jobs for better money; they leave for better opportunities,” says Jack MacPhail, managing director, Americas, for leadership development solutions at Korn/Ferry.

Four in 10 executives say that in order to retain talent, organizations should do more to empower employees to make decisions. Thirty-two percent say companies should focus more on career development, while 16 percent say organizations that do more to create a better work/life balance would better retain executives.

When asked what is most important when reviewing a job opportunity, 40 percent of executives say the company’s management team. Seventeen percent cite culture as the most important factor, while 16 percent say the company’s reputation is key.

Forty-five percent of executives say that large multinational or national companies are the most appealing companies to work for, while 27 percent prefer stable midsize companies and small fast-growth firms.

Forty-five percent say they would consider a change in industry, a change in job function or a change in location when considering a new opportunity.

—Jessica Marquez