An article recently posted in Forbes declared in its title “Employees Who Stay in Companies More than Two Years Get Paid 50% Less.” This statement created an overnight social media frenzy, not only generating more than a million views of the article, but also instigating a comment frenzy by readers from all over the globe.
The article, written by Cameron Keng, summarizes how the average annual salary increase (approximately 3%) barely exceeds the pace of inflation (2.1%)—making “job-hopping” a seemingly more lucrative endeavor for an employee (who could see salary increases of 10% to 20% by marketing themselves to competitive companies).
So, what does this mean for leaders and organizations—whether in established corporate settings, small businesses or teams? How do organizations keep their talent as the economy heats up and more opportunities become available to their people ?
It’s an interesting situation—one that smart companies are already trying to tackle. In a nutshell, they’re creating opportunities for their people. This new trend is called ‘”inboarding.”
Smart companies have long understood the predecessor to inboarding—a familiar concept called “onboarding.” Onboarding is defined as “organizational socialization, referring to the mechanism through which new employees acquire the necessary knowledge, skills, and behaviors to become effective organizational members and insiders.” Onboarding has earned a lot of attention among HR leaders lately as studies show significant turnover ratios within the first 90 days of employment. In fact, a study released by The Center for Creative Leadership suggested that nearly 40% of executives hired at the senior level are pushed out, fail, or quit within the first 90 days.