Why people quit their jobs

Why Do People Quit Jobs

Imagine that you’re looking at your company-issued smartphone and you notice an e-mail from LinkedIn. “These companies are looking for candidates like you!” You aren’t necessarily searching for jobs, but you’re always open to opportunities, so out of curiosity, you click on the link. A few minutes later your boss appears at your desk. “We’ve noticed that you’re spending more time on LinkedIn lately, so I wanted to talk with you about your career and whether you’re happy here,” she says. Uh-oh.

Why Attrition Matters

It’s an awkward and Big Brother–ish scenario—and it’s not so far-fetched. Attrition has always been expensive for companies. But in many industries the cost of losing good workers is rising, owing to tight labor markets and the increasingly collaborative nature of jobs. (As work becomes more team-focused, seamlessly plugging in new players is more challenging.) Thus companies are intensifying their efforts to predict which workers are at high risk of leaving so that managers can try to stop them. Tactics range from garden-variety electronic surveillance to sophisticated analyses of employees’ social media lives.

Some of this analytical work is generating fresh insights about what impels employees to quit. In general, people leave their jobs because they don’t like their boss. Or see opportunities for promotion or growth Or offered a better gig (and often higher pay). These reasons have held steady for years. New research looks not just at why workers quit but also at when. “We’ve learned that what really affects people is their sense of how they’re doing compared with other people in their peer group. Or with where they thought they would be at a certain point in life,” says Brian Kropp, who heads CEB’s HR practice. “We’ve learned to focus on moments that allow people to make these comparisons.”

Read the rest of the article HERE.

Use big data to create value, not just targeting

How Can We Best Use Big Data

Another great article on big data from the folks (Specifically Niraj Dawar) at HBR. The gist? Targeting provides a short term advantage, creating value is long term. Read more.

Big data

Big data holds out big promises for marketing. Notably, it pledges to answer two of the most vexing questions that have stymied marketers since they started selling: 1) who buys what when and at what price? and 2) can we link what consumers hear, read, and view to what they buy and consume?

Answering these makes marketing more efficient by improving targeting and by identifying and eliminating the famed half of the marketing budget that is wasted. To address these questions, marketers have trained their big-data telescopes at a single point: predicting each customer’s next transaction. In pursuit of this prize marketers strive to paint an ever more detailed portrait of each consumer, memorizing her media preferences, scrutinizing her shopping habits, and cataloging her interests, aspirations and desires. The result is a detailed, high-resolution close-up of each customer that reveals her next move.

But in the rush to uncover and target the next transaction, many industries are quickly coming up against a disquieting reality. Winning the next transaction eventually yields only short term tactical advantage. It overlooks one big and inevitable outcome. When every competitor becomes equally good at predicting each customer’s next purchase, marketers will inevitably compete away their profits from that marginal transaction. This unwinnable short-term arms race ultimately leads to an equalization of competitors in the medium to long term. There is no sustainable competitive advantage in chasing the next buy.

Read the rest HERE


Niraj Dawar is a professor of marketing at the Ivey Business School, Canada. He is the author of TILT: Shifting your Strategy from Products to Customers (Harvard Business Review Press, 2013).