How to Design an Effective Employee Incentive Plan
Are traditional financial rewards enough to motivate your team, or could the secret to unlocking peak performance lie in understanding the deeper, social value of non-cash incentives?
In This Post:
- 78% of workers under the age of 40 say the pandemic has caused them to reconsider what they want to do for a living. (Elementsgs, 2021)
- 69% of those not working remotely have considered switching to a job that offers remote working. (Elementsgs, 2021)
- During the pandemic, the following were the top three career and job-related searches: “jobs that pay well”; “what jobs hire at 14” and “best jobs to work from home.” (Elementsgs, 2021)
- Searches for jobs that hire teenagers have increased by 192%. (Elementsgs, 2021)
- Searches for remote work jobs have increased by 114%. (Elementsgs, 2021)
- 74% of young workers could be happy in a job that pays a more progressive minimum wage of a minimum of $15 per hour. (Elementsgs, 2021)
- 47% of young workers could be happy in a job that pays the federal minimum wage $7.25 per hour. (Elementsgs, 2021)
- According to a recent poll, roughly 52% of American employees are considering a career change this year. 44% have already decided to make the change. (Fastcompany.com, 2021)
General Career Change Statistics
- During their working life, the average person will change jobs 5-7 times. (U.S. Bureau of Labor Statistics, 2021)
- With an ever-increasing number of career options available, roughly one-third of the total workforce will now change jobs every 12 months. (The Future of Jobs Report, 2020)
- By the age of 42, an employee will most likely have held ten jobs. (DOL, 2021)
- Employers that are hiring accept that prospective employees will change careers every three years. (The Future of Jobs Report, 2020)
- If an employee changes jobs less frequently than every three years, they are in the minority. (The Future of Jobs Report, 2020)
- 43% of people say they have landed their dream job. (Studyfinds.org, 2021)
- Almost half of all employees, or 49%, are actively seeking change. (Linked in, 2020)
- According to statistics on career changers, only 21% of workers believe they are paid fairly. (Goremotely.net, 2020)
- In comparison, 45% of workers believe they are rarely if ever, paid adequately. Many of them are thinking about quitting and changing careers. (Goremotely.net, 2020)
- According to 77% of the health workers surveyed say that skilled employees are not adequately recognized for their contributions. Financial constraints, according to 57%, prevent them from changing careers. (CIPD, 2021)
- Many people want to change careers but do not take the necessary steps. 40% said they didn’t know what to do, and 37% said they didn’t have the required qualifications for the new change. (Comptia.org, 2021)
- A career change may be the best option for increasing one’s salary prospects, as the average pay increase is between 3% and 5%. (CNBC, 2021)
- Only about 14% of the workforce believes they have a great job that they would not change. (U.S. Bureau of Labor Statistics, 2021)
- 70% of the workforce is actively looking for a job change. (Inc, 2018)
- 21% of employees believe they are being paid fairly. (PayScale, 2019)
Why do People Change Careers
- According to career change statistics, one of the most common reasons people leave their jobs is dissatisfaction and unfulfillment. (Harvard Business Review, 2016)
- According to research, 80% of people are dissatisfied with their current job, and the main reason is a mismatch between what they think they are good at and what they are currently doing. (International Labor Organization, 2017)
- 39% of people are considering a career change for higher pay. (CNBC, 2019)
- 45% of workers believe they are rarely or never paid what they are worth. (PayScale, 2019)
- Micromanagement and other oppressive workplace practices are a source of frustration for 74% of workers. (Pubmed.gov, 2021)
- 65% of employees report feeling isolated at work because the environment is hostile/unhelpful. (NCBI, 2018)
- 21% of workers express an interest in a different career field. U.S. Bureau of Labor Statistics, 2021)
How Long do People Usually Hold One Job Position
- Men have a median tenure of 4.3 years, while women have a tenure of 4.0 years. (U.S. Bureau of Labor Statistics, 2020)
- People age 18 to 24 change jobs 5.7 times during these six years. (U.S. Bureau of Labor Statistics, 2020)
- The number of jobs held decreases as people get older. Employees between the ages of 23 and 34 worked an average of 4.5 jobs. (U.S. Bureau of Labor Statistics, 2021)
- Workers ages 34 and 44 had an average of 2.9 jobs. For workers above 45years old, this number drops to 52, where it stands at 1.9 jobs. (U.S. Bureau of Labor Statistics, 2021)
- According to job change statistics, Caucasian people change jobs more frequently than any other race. (U.S. Bureau of Labor Statistics, 2018)
- Caucasian people held 5.9 jobs between the ages of 18 and 24. (U.S. Bureau of Labor Statistics, 2018)
- African-American people held 4.8 jobs between the ages of 18 and 24. (U.S. Bureau of Labor Statistics, 2018)
- Latinos held 5.1 jobs between the ages of 18 and 24. (U.S. Bureau of Labor Statistics, 2018)
- Caucasians are more likely than other races and ethnicities to stay with a company for a more extended period of time. (U.S. Bureau of Labor Statistics, 2018)
- 30% of Caucasians workers stayed with the same employer for ten years or more. (U.S. Bureau of Labor Statistics, 2020)
- 23% of Latinos and 25% of African-American and Asian workers stayed with the same employer for ten years or more. (U.S. Bureau of Labor Statistics, 2020)
- All three demographics held an average of 1.9 jobs between the ages of 45 and 52. (U.S. Bureau of Labor Statistics, 2018)
Why Workers Don’t Make a Career Change
- According to statistics on career changers, about 20% of people change jobs because they want to advance in their careers. (U.S. Bureau of Labor Statistics, 2021)
- 60% of Americans who want to advance in their careers are hampered by a lack of time. (CNBC, 2021)
- Money is cited by 62% of respondents as a barrier to advancing their careers by learning new and better skills. (International Labor Organization, 2017)
- Managers, professionals, and other occupations with similar median tenures had the longest median tenures (5.5 years). (U.S. Bureau of Labor Statistics, 2020)
- Workers in service occupations had the shortest median tenure (3.2 years). (U.S. Bureau of Labor Statistics, 2020)
- Workers over the age of 65 have an average job tenure of (10.3 years) (U.S. Bureau of Labor Statistics, 2020)
- The median tenure for workers aged 25 to 34 is (3.2 years) (U.S. Bureau of Labor Statistics, 2020)
Age and Career Change
- As people get older, the differences become minor. All of those mentioned above hold 4.3-4.6 jobs between the ages of 25 and 34. Between the ages of 35 and 44, they hold 2.1 and 3.1 jobs. (U.S. Bureau of Labor Statistics, 2018)
- Almost 80% satisfied workers under the age of 20 express a desire for a career change in their 30s, the figure falls to just under 65%, and in their 40s, it falls to less than 55%. (Washingtonpost, 2021)
Gender and Career Change
- Men tend to stay with their employers for a more extended period of time than women. (International Labour Organization, 2018)
- According to job change statistics, 30% of male workers had been with their current employer for ten years or more. (Bls.gov, 2020)
- Women’s figures are slightly lower than men’s, at 28%. (Bls.gov, 2020)
- Tenure is influenced not only by gender but also by age. (Bls.gov, 2020)
Baby Boomers, Millennials, Generation Z and Career Change
- According to 2019 baby boomer career change statistics, they worked an average of 11.3 jobs between the age of 18 and 46. Almost half of these jobs were obtained before the age of 25. (U.S. Bureau of Labor Statistics, 2021)
- Almost 75% of Generation Z intend to return to school. They anticipate doing so during their working lives. (U.S. Bureau of Labor Statistics, 2021)
- 91% of millennials anticipate changing jobs every three years. (U.S. Bureau of Labor Statistics, 2021)
- For baby boomers, the average number of jobs held over the course of a lifetime is 12. (U.S. Bureau of Labor Statistics, 2019)
Education and Career Change
- Half or less of what people studied is used by 53% of college graduates. None of it is used by 15% of the population. (U.S. Bureau of Labor Statistics, 2019)
- The average age at which a person switches careers is 39 years old. (CNBC, 2019)
- 29% of people have changed careers since starting their first job after college. (Zippia, 2021)
- In their current job, 21% use all of their education, 53% use half or less of their education, and 15% use none of their education. (Harvard Business Review, 2021)
- 50% of Americans believe that educational requirements are a barrier to advancing or changing careers. (Pewresearch.org, 2017)
- What occupation will have the most job openings by 2021 and beyond? The following are the fastest-growing occupations, according to the Bureau of Labor Statistics. (Burau of Labour and Statistics, 2020-2030)
|
Ocupation |
Groath Rate 2020-2030 |
2020 Median Pay |
|
70% |
$27,490 per year |
|
|
68% |
$56,230 per year |
|
|
62% |
$25,110 per year |
|
|
52% |
$111,680 per year |
|
|
52% |
$46,470 per year |
|
|
49% |
$28,800 per year |
|
|
Agents and business managers of artists, performers, and athletes |
46% |
$75,420 per year |
|
44% |
$42,910 per year |
|
|
39% |
$40,510 per year |
|
|
39% |
$64,050 per year |
|
|
38% |
$50,850 per year |
|
|
37% |
$106,920 per year |
|
|
36% |
$62,940 per year |
|
|
35% |
$92,270 per year |
|
|
35% |
$27,230 per year |
|
|
35% |
$59,770 per year |
|
|
34% |
$26,080 per year |
|
|
Miscellaneous entertainers and performers, sports and related workers |
34% |
$15.70 per hour |
|
33% |
$103,590 per year |
|
|
33% |
$67,250 per year |
On a Final Note
With today’s online learning systems and technology, changing one’s career path is easier than ever. The career change statistics indicate that retraining gives workers the chance and resources they need to improve their future. Therefore, it offers them the opportunity to use their natural gifts and abilities to excel in their career.
Written by Shortlister Editorial Team
Career Assessment Tools
Browse our curated list of vendors to find the best solution for your needs.
Stay Informed
Subscribe to our newsletter for the latest trends, expert tips, and workplace insights!
Related Posts
Free HRIS Software in 2024
Discover how small businesses and start-ups can benefit from free HRIS software in meeting core HR needs while also increasing the productivity of both managers and employees.
Employee Incentive Deep Dive: Guusto Review
With a free plan, a unique platform, and rewards that target frontline workers, Guusto stands out as a valuable employee incentive tool in the workplace.
How to Fire Someone Nicely?
Is there really a nice way to fire someone? While termination will never be easy, it can be done with professionalism and compassion.