Employees are changing jobs. There isn't a single industry immune from the shifting tide of the "buyer's market" we find ourselves in. According to a recent Oliver Wyman survey, employees are looking for new jobs for all kinds of reasons. But maybe not the ones you necessarily think.

It's critical for organizations to understand the "why" so they can focus on the "now what" of the current job market. And whether this "great job shift" is an unlikely opportunity for growth and reflection. 

Below, our Advisor Collective members share their thoughts on questions prompted by the Oliver Wyman survey & article, and how they believe companies should be reacting. This will serve as Part I of a series focused on the question "Why Are Employees Leaving?" - so check back for new commentary. 

According to the survey, the top reasons employees are leaving their jobs or looking for new ones is due to Pay, Balance, and Fulfillment.  Do you agree with this?

1. Anecdotally, I would agree with this. The friends and colleagues I know personally that have moved organizations found better opportunity at another organization. In a lot of cases the reason was money, benefits, or a better balance. A little over a year ago I made a move myself, and it was primarily about the opportunity to re-create a department in the organization. What I learned after I made the move is that the new organization's culture was dramatically better, and that is what will make me stay. – Shannon Klick, Marsh McLennan Agency
2. I agree that those are the top reasons people are leaving their current jobs. It is a two way street; job seekers are demanding higher pay, flexibility, etc. and employers who want and need to be competitive must pay to get the top talent they are looking for.  – Anne Burkett, USI Insurance Services
3. The veil of managing a work persona dropped when necessity forced a focus on the realities of our lives, shared anxieties, and need for wellbeing. This has largely contributed to the sentiment of wanting to be seen and valued for exactly who you are without apology. Therefore, individuals are understandably seeking places and spaces that value flexibility and uniqueness over rigor and structure.  – Mark Stelzner, IA
4. Employees have always wanted these things. The difference today is that the conversation is public, shared, and long overdue. Employers have the choice to listen, assess, and act.  – Corrina Nation, Benefit Technology Resources
5. I agree that pay, balance and fulfillment are major reasons employees are leaving. In my experience, fulfillment belongs at the top, and where I'm seeing "balance" play out is primarily due to challenges managing stress at work. Pay doesn't tend to be the initial driver, but once employees realize that they can accomplish that in addition to other reasons, the combination is tough to surmount.  – Jeremy Ames, Workforce Insight
6. I still believe that people are loyal to and leave managers.  I do think companies need to offer their managers the financial flexibility to proactively compensate key performers as the pay gap can get big enough to entice "happy" employees away from their organizations.  As to balance, I believe for the most part people generate that themselves.  If you are a workaholic at one company, you will end up being a workaholic at your new company as that is just how some people are wired.  – Kevin McCoy, Alliant
7. I agree with this statement but also feel that people are looking to start with a clean slate after almost 2 years of dealing with workplace volatility resulting from an up-ended market. I believe Pay, Balance and Fulfillment may have been always at issue (though possibly not the catalyst) - instead they are now aggravated symptoms from a deeper root cause. By leaving their jobs, employees can deal with both the symptoms and mentally clear the accumulated stress they have endured from almost 2 years of turbulence (much like people do with annual New Year's resolutions).  Closure and new beginnings!  – Deric Haessler, EPIC

8. Yes and No. It always comes down to money. But I think Balance has become a big driver. The Pandemic has allowed us to take a bit of a different perspective in to our job now.  – Vincent Pinto, NFP

What are the impacts buyers should consider when weighing the pros/cons of a standalone benefits administration (Ben Admin) solution versus an “all in one” HCM solution for benefits administration?

Certainly, some HCM providers have made a commitment to the benefits administration area of their system, a few making this a focal point for enhancements and better functionality.  Some HCM and standalone Ben Admin providers have focused on ways to improve data integrations, mainly through APIs and similar methods.  Specific to deciding between an HCM vs standalone Ben Admin provider, focus tends to be on a client’s benefit strategy including complexity of their benefits program, use of decision support and education tools for employees to understand their benefit options, the need for an employee benefit call center, the use of services like dependent verifications, QMCSOs, direct bill for leave of absence, to name a few.  Clients should also consider a system being able to manage their voluntary benefits strategy, access to dashboards to help monitor objectives, reporting capabilities, and the general amount of benefits knowledge the vendor/provider possesses through their support models and approach to managing a client.  Lastly, client size, scale of their own Benefits team, and available budget are always variables which need to factor into the decision in deciding which option is best for them in evaluating an HCM vs a standalone Ben Admin provider/vendor. 

– Ron Conine, Lockton Companies

Specifically this speaks to the tradeoff between functionality and one database. The key to functionality in standalone is that it has to sufficiently improve the ROI of going all-in-one. The key to all-in-one is to make sure that payroll interactions are seamless, and not too much of hit is taken on interfaces to carriers. 

– Jeremy Ames, Workforce Insight

Sophistication of users.  Service associated with it. can it be maintained in-house or do we need the vendor still. 

– Vincent Pinto, NFP

The all-in-one HCM provider is becoming a fierce competitor to stand-alone benefits players - mostly because data integrations between payroll & benefits technology has not kept pace with modern consumer expectations. However, benefits are becoming increasingly complex and all-in-one solutions are having their own challenges developing their proprietary benefit modules to keep up.  Clients should consider their total HR technology strategy when evaluating which lane to take.  Can the long-term success of that strategy endure a less than ideal employee experience, or lack of robust functionality for benefits decisions, hybrid plan models, or complex voluntary plans?  Or should a niche provider take this on, and the appropriate governance of a separate relationship be put in place? 

– Corrina Nation, BTR

For many SMB clients, the native ben admin within the HCM solution is fine.  However, it never hurts to take a good look at any manual processes or bottlenecks and understand why those exist.  If the benefits structure is complex (examples: varied benefit classes with a lot of movement in and out of classes, stacking life insurance plans); or if there is a need for enhanced services like strong decision support or consolidated billing functionality; these services are more often found in stand-alone benefits administration solutions rather than a holistic HCM solution.  We also take into consideration what the integration of the ben admin with payroll will look like.  It is important to identify how the systems will share information and the costs to build out any integrations.  Although costs should not trump efficiencies gained, it is a component that cannot be ignored.  We recommend clients consider all costs, including soft costs (time and resources) that will be impacted with any change like this.  

– Anne Burkett, USI Insurance Services

The complexity of a clients business structure, especially those in M & A mode; Benefits and ACA and the nuances in benefit plans, benefit and contribution structure, and the data used to identify and determine eligibility rules should be considered. Consider:  Carrier billing; self-bill/ list bill, and reporting capabilities to assist w/reconciliation or remittance statement generation for self-bill coverages.  The audit trail and visibility into all elections/waivers/approvals/denials/changes/terminations (think DOL audit). 

Remember the ACA,  eligibility and ineligibility as the information needed may live in multiple systems and what will be involved from a data exchange and resource perspective to stay compliant.  Carrier connectivity and understanding if the process is native or outsourced, further if the data is transmitted via EDI or API, and any established EDIs/APIs with carriers are important to know.  For established connections/APIs in existence, this can save weeks or months on a production timeline.  The same would be true for data exchanges between HR/Payroll/ACA and Benefit systems outside of the HCM Suite or Ben Admin Solution.  Fees associated with items like system modifications, change in language, pricing, contribution, carrier, plan/EDI structure changes, cost per EDI/API,SSO and change orders in general, are important to understand and weigh options.  Lastly, clients should consider how much they want to manage and own internally vs outsource.

– Pattie Zappone, Alliant Insurance Services

What kind of impact has Diversity, Equity, and Inclusion (DEI) had on HR Technology decisions? Has this become a driver in making decisions on HR/HCM technology or just a talking point? What emphasis are we seeing from HR in this area?

My experiences are most new ideas or enhancements are rolled out to Enterprise clients first. I think this is very prevalent in that size range. Mid market is definitely interested but it is not driving the decision. Core functionality and specific needs still the decision maker in mid-market.  They are asking about it in the reporting capabilities frequently. 

– Vincent Pinto, NFP

The push for a more intentional HR strategy around DE&I is becoming more clear in our conversations with clients. We have seen multiple HR teams eliminate providers because their specific DE&I mission statement was not clear or readily available. I think this is going to continue to be a point of discussion during selections and evaluations as HR begins to view solution providers as more than commodity relationships, but an extension of their own values. 

– Corrina Nation, BTR

We have not seen DEI been impactful to HR Technology decisions, but more of a talking point.  There is certainly awareness to improving DEI. 

– Anne Burkett, USI Insurance Services

From an HR technology sourcing, evaluation, and selection standpoint, we have seen some clients include the request for information around provider internal DEI programs for years.  In terms of evaluating HCM and applicable HR technology solutions to help with their own organization's DEI objectives, we are seeing clients seek information as part of an RFP or through discussion with vendor candidates.  Some examples include clients wanting to better understand the use of surveys, communication abilities, access to data and metrics, and deeper dives into some aspects of talent acquisition, talent management,  learning and education, and employee development capabilities in the software and system(s).

  – Ron Conine, Lockton Companies

What has been interesting to me is how this has been more of a "fad" than a pervasively consistent driver. Personally, I saw a lot of movement in this direction in the 2017-19 timeframe, then it fizzled. Most interesting of all was the immediate, increased attention it received in May/June 2020 at a time when, ironically, few decisions were being made due to focus/money issues. It has returned to the recruiting technology space in 2021, but HR isn't done putting out their other fires to really address it in their technology, particularly their short-staffed situations.

– Jeremy Ames, Workforce Insights

Most clients are underutilizing their HCM technology.  When approaching a client about ways to get the most out of their HCM, how do you start that conversation?  If you had 30 seconds to help a client take that first step, what would you say?

I always start with what frustrates you about your current system?  This open ended question gets them talking about how they are using the tool, and what is working great about it.  From there a skilled consultant can offer solutions based on their driving needs.  I have learned a lot of issues are based in either the configuration of the system or the business process around it.  – Caleb Fullhart, Peridus Group

Would you like to talk about ways you can streamline administration of X?  Look at your contract or invoice.  Are there things that you are paying for that aren't being used?  Or are you paying two vendors for the same service?  – Robin Ryan, Woodruff Sawyer

Take the time to document the current state and then what you want in the future state. There should be “nice to have’s” and “must have's” in the future state.  Then ask about them vigorously.  – Vincent Pinto, NFP

I would ask if they have spoken to their current solution provider about what is new.  – Anne Burkett, USI Insurance Services

Do you know how much you're paying for your HR technology?  Most employers are unaware of market value of an HR tech system or HCM solution, so understanding where the market is in terms of appropriate costs can lead to some pretty immediate return.  – Corrina Nation, Benefit Technology Resources

First, be mindful it takes a good 60 to 90 days after go live to get the core blocking and tackling right and it usually takes another six months to a year to be firing on all cylinders.  Assuming the latter is not true, meaning some areas are not at the desired state, revisit your original wish list, decision making criteria, scope, or even RFP or MSA as a way to re-establish where you stand.  If the above don't exist, now is the time to establish something similar.  Use these materials or new materials to create a top 3, top 5, and as applicable top 10 list of what you want to accomplish over the next two months, four months, and six months.  From there, consider partnering with a consultant who can establish a firm plan (project plan) to get your organization to the next level(s).  – Ron Conine, Lockton Companies

If you could provide one or two pieces of advice to clients or providers regarding the creation or management of Service Level Agreements (SLA) and/or Subjective Service Level Agreements (SSLA), what would that be?

Assume nothing.  Identify use cases and make sure that they are covered by your SLA, especially if you are replacing a vendor with which service has been an issue.  Make sure that you address things that are currently not working, but don't forget to include the things that aren't causing your problems now.  Start with the pre-mortem! Think about what is driving this change and what frustrations you're trying to solve for with this purchase/contract. Then imagine that you have completed the project and it's failed.  What are the things that failed?  Why did they fail?  – Robin Ryan, Woodruff Sawyer

Keep the SLA simple.  Someone will have to keep track of the performance, and most times the vendor will not.  Do not try to be unique with the SLA.  The vendor may say yes, but has no way to manage 400 different SLA's.  Make sure there are some fees at risk each month or quarter, and you choose where those dollars will be at risk.  – Vincent Pinto, NFP

SLAs are a vehicle to manage the relationship and should be fair and realistic.  SLAs should have a variety of categories and equally, both the client and vendor/provider should have a say in what's being captured and measured.  If there are one or two areas which have plague you in the past, talk about those with the vendor/provider candidates as part of the selection and decision making process.  Once the SLAs are established, get the agreed upon date/time on the calendar even if the meeting is three months out.  If the relationship is healthy albeit one or two SLAs/SSLAs are failing, talk openly about why and what can be done to correct the shortcomings.  – Ron Conine, Lockton Companies

Determine what is important to you and then ask for it.  Even if your selected solution provider cannot give you everything you ask, hopefully you will find a compromise that is beneficial.  It also helps to show your priorities.  – Anne Burkett, USI Insurance Services

Be realistic and look at what it has transpired in the past and analyze.  Hold people accountable.  Nothing is more detrimental to a deliverable than lack of accountability.  – Caleb Fullhart, Peridus Group

Own the governance of the SLA as the client.  It's a two way partnership.  – Corrina Nation, Benefit Technology Resources

There’s a common misconception that hiring an advisor/consultant to lead an HR Technology solution provider selection project will always cost a lot of time and money. 

What are a few ways you have approached clients who may have a limited budget for a selection/sourcing project?  What is the best piece of advice you have given them?

It can be very costly in time, resources and financially to make a decision that does not meet your company goals. Working with a consultant who knows the market can make the process of selection not only faster but more accurate.  Take advantage of industry expertise to make the process easier.  – Anne Burkett, USI Insurance Services

I think the key is to find a consultant that can work with your budget and adjust from their side accordingly. Be flexible. We do a lot of projects with companies on a limited budget, it is a conversation piece in the beginning. "We have X for a budget, we need Y done, how can we make that work?" I think it is important to have that conversation early in any advisor/consultant search.  – Caleb Fullhart, Peridus Group

There is considerable value in conducting the proper due diligence on the front end so you aren't oversold by the solution providers - both in soft and hard dollar costs. The ROI of hiring a consultant is a net positive for most clients because A) you're ensuring you are conducting the in-depth needs analysis you need to find the right provider, and B) most consultants have relationships within the provider community so they're able to pass along deep discounts and elevated contract concessions in year 1 and beyond.  – Corrina Nation, Benefit Technology Resources

Implementing the wrong solution (or a bad implementation of the right solution) will cost more money in the long run.  Spending more time determining their needs and priorities prior to initiating a search will help them focus on getting the right solution and building it out properly.  It's penny-wise and pound-foolish to make a tech investment and not properly vet or implement it.  When looking at HCM, don't be distracted by shiny objects - focus on the items you have prioritized and spend the time/money to implement correctly the first time, then iterate to add new modules or features as time and budget allow.  – Robin Ryan, Woodruff Sawyer

First, be realistic and transparent about your budget.  If the budget is a firm $15k for example, make sure that's disclosed to the consultant.  From there, start with identifying your objectives, scope, must haves and your secondary priorities, but also be mindful of current state and systems.  This is arguably where a lot of organizations struggle, but skipping this step is not an option.  A solid consultant should be asking you questions you didn't think about and forcing you to do the upfront homework before even considering does it make sense to proceed with a vendor/provider selection.  – Ron Conine, Lockton Companies

We have presented multiple options to clients.  Full “all in” first, and then a bit of a hybrid approach that may better fit the budget.  I always tell them I could not imagine them leading a project while doing another full time job.  Biggest advice I give them is to do it with a consultant.  Work with someone to guide you through all of the responses and demonstrations.  – Vincent Pinto, NFP