Why job-hoppers hop
When it comes to job-hoppers, many make the quick assumption that it’s all about the money. But is it?
AT the age of 29, Lee Zhern Yuen is already the chief marketing officer of a small IT healthcare service provider company.
After graduating in finance and marketing six years ago, Lee started working as a mortgage sales officer with a foreign bank. Within the same year, he was promoted to team leader. By then, he had set a new goal – to become the youngest sales manager in his industry.
Opportunity knocked on his door when he was headhunted for that position in another bank in August 2008. Lee, only 25 then, jumped at the opportunity. Most of his counterparts were already in their 30s.
“Money wasn’t really a factor. My first bank was giving me a really good package, with overseas trips, bonuses and increments in addition to my basic package. But I was determined to make it as a sales manager,” he says.
So why didn’t he stay on to be a sales manager in his first company?
“That position was not available and I couldn’t wait any more. I wanted to be in a position where I could make decisions on work flow – decisions which I felt my bosses then weren’t making,” he explains.
The initial six months were dificult, as he had to learn new skills and set up a new office. But the hard work paid off, and for the next two years, sales were good and money kept pouring in.
“By the end of the second year, my team and I were chasing industry awards and recognition. Money wasn’t the motivation,” he stresses. “Things had become too easy and it wasn’t challenging any more.”
He adds that a change in the company management made the situation worse as he didn’t seem to fit in.
“I would drive to the office, and refuse to get out of my car for five or 10 minutes. I knew something was really wrong, and I knew it was time to move on,” he relates.
Even though he has had to take a 50% pay-cut from his previous fivefigure basic salary, Lee says he is “really, really happy” now.
“Of course, I get profit-sharing benefits. So in the long run, things kind of even out,” he shares.
Another job-hopper, Kamal (not his real name) has worked in many companies and different industries to arrive at his current position as a senior executive in property development. Seven companies in eight years, to be precise.
Since graduating with a degree in advertising in 2004, Kamal has worked his way through the advertising industry, food production, events management, and the retail industry before venturing into property development. His shortest stint with a company was just one week while the longest, in the retail industry, lasted three years and seven months.
“In my first three jobs as a graphic designer, I had to job-hop to get better pay. I was working really long hours, plus weekends, but the salary was low. I hopped over to the food production company because they offered me double what I was making at that time.
“When I moved to events management, it was a new learning curve for me but I was willing to learn. When I moved over to retail, I was still doing events management. But I was working non-stop, weekends and public holidays. I had no life,” he says.
And that was what pushed him on to his next job.
“I was attracted to the flexible hours. The pay is good, and I now have my weekends off. I can have dinner with my family.
“When I was younger, it was about the money. But now that I’m older, my priorities have shifted. I’m thinking about relationships and family, which would not have been possible with my previous job. How can you have a family if you’re never at home?” he asks.
Lee and Kamal both come from Generation Y (Gen Y, those born between 1978 and 1995) and they are not alone in job-hopping.
According to Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan, Malaysian companies are seeing an attrition rate of between 9.6% and a pphenomenal 75%, based on its survey conducted on executive positions between June 2010 and July 2011, on 143 companies across the various sectors in the country.
The survey shows that industries with the highest annual average turnover rate in the non-manufacturing sector are It/communication (at 75.72%), Associations/societies (at 33%), and Hotel/restaurant (at 32.4%).
The manufacturing sector saw relatively lower annual average turnover rates, with the highest being the Basic & Fabricated Metallic Products (at 23.88%), Electrical & Electronics (at 23.04%), and Plastic/rubber (at 19.92%).
Shamsuddin says this amounts to additional costs for employers as they have to recruit new staff to replace those who leave.
In a study by AON Hewitt (a human capital consulting and outsourcing firm) titled “APAC Year on Year Attrition Rate (2009-2011)”, Malaysia is placed sixth in the AsiaPacific in 2011 for staff turnover with a 15.9% attrition rate.
The study places us behind China (24.4%), Australia (19%), India (18.6%), Hong Kong (16.3%) and Indonesia (16.1%).
Clearly, the job-hopping trend is not limited to Malaysia.
According to Kelly Services marketing director for Singapore and Malaysia Jeannie Khoo, this trend is predominantly seen in Gen Y, and no, it’s not always just about the money.
“For the Gen Y-ers, they have to find meaning in their work. They must have a work-life balance, and they are not willing to go all out if it affects their ‘me-time’.
“Don’t get me wrong though, it’s a very healthy attitude. Otherwise they will get burnout easily,” she says.
But does this mean the Gen Y-ers are not a hardworking bunch?
“No. To be fair to them, they do work hard. It’s not that they come in (to work) and then just laze around. Some employers will say that their staff is demanding, and that they want to work from home. But with technology advancing, and Gen Y mastering the technology aspect very well, is it possible today? I say it is.”
Khoo adds that many companies, especially the bigger multinational companies (MNCS), government-linked companies (GLCS) and conglomerates, are sitting up and taking note.
These companies are now recognising employees as talents, and along with that, talent management and retention.
“Companies are now looking at training, career development and succession plans. They are engaging with their employees better. They are offering better healthcare packages for their employees and their immediate family members, and this doesn’t come cheap.
“But when you have a pool of employees who are healthy and happy, you’re also looking at less medical leave, which in turn increases productivity. It’s a win-win situation. If you don’t invest in your employees, it’s likely that they won’t stay long,” she says.
Job-hopping does have its dangers though, Khoo warns.
“It doesn’t augur well for a person to job-hop too often. If one leaves the company in less than six months, companies would usually understand if it happens once.
“But if this happens up to two or three times, it will definitely set off the alarm bells for employers,” she says.
So where does company loyalty fit in for the Gen Y-ers?
Lee has this to say: “I think it’s really hard for companies to get loyalty today as it’s really not just about the money. If it was, they’ll only be hiring mercenaries.”