The Career Nomads Have Arrived: Korn Ferry Study Shows That Professionals Are on the Move, but Companies May Be Paying the Pr...
October 24 2019 - 8:00AM
Business Wire
Change is good, but it may come at a price. This is according to
a new study by Korn Ferry (NYSE:KFY) that looks at the increasing
phenomenon of “Career Nomads” – high-performing, talented
professionals who are switching jobs, organizations and even
careers at a faster rate than others.
According to U.S. Bureau of Labor Statistics (BLS), older
millennials (those born in the early 1980s) have already switched
jobs nearly eight (7.8) times, despite the fact they are only
mid-career. Statistics also show that the rate at which people quit
their jobs has increased 25 percent since 2013.
And while the Korn Ferry study finds that 88 percent of
professionals believe that frequent job switches have had a
positive impact on their careers, statistics show that the cost for
companies to replace high-performing Career Nomads is between 50
percent to 75 percent of their annual salary.
Despite the cost of replacing Career Nomads, the Korn Ferry
study shows that more than half of organizations, especially larger
Fortune 500 companies with greater revenue per employee, enjoy net
benefits from the value these short-tenured employees bring.
When asked in the study about the top goals Career Nomads have
when taking a new job, respondents stated: leveraging their skills
in better context, aligning with organizational purpose, and
finding appreciation and recognition.
Korn Ferry research points to certain characteristics that help
predict if an employee will seek out new roles and challenges.
People with high levels of intellectual curiosity are, on average,
2.2 times more likely to be Career Nomads, and those who have a
tolerance for ambiguity are, on average, 2.5 times more likely to
fall into that category.
“Our study indicates the reasons people seek new challenges
elsewhere are the same reasons companies want them to stay,” said
Jean-Marc Laouchez, President, Korn Ferry Institute. “Career Nomads
are intellectually curious. They have a tolerance for ambiguity.
They are willing to take risks that can help them excel and provide
value for their employer.”
Give Them a Reason to Stay
So, what are companies to do? The Korn Ferry study highlights
the top five talent management practices (in order) that can reduce
cost and increase the net benefit of retaining Career Nomads:
- Offering compelling career development opportunities
- Supporting work-life balance
- Improving leader effectiveness
- Enhancing employee well being
- Restrategizing rewards and benefits
“While there’s no fighting the Career Nomad trend, business
leaders can look for ways to extend job tenure, especially for high
potentials who make the most impact on a company,” said Laouchez.
“This group needs to be identified much earlier than in the
past—then nurtured, mentored, developed and rewarded.”
Korn Ferry has developed a Career Nomad Calculator, which
estimates the potential net costs and benefits of hiring nomads
based on a company’s industry, workforce size, and annual
revenue.
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We work
with clients to design their organizational structures, roles and
responsibilities. We help them hire the right people and advise
them on how to reward, develop and motivate their workforce. And,
we help professionals navigate and advance their careers.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191024005200/en/
Tracy Kurschner 612.309.3957 Tracy.Kurschner@Kornferry.com
Korn Ferry (NYSE:KFY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Korn Ferry (NYSE:KFY)
Historical Stock Chart
From Apr 2023 to Apr 2024