It appears that The Great Resignation is not anywhere close to an end as employers seek new ways to control the number of departing workers. According to the latest Jobs Openings And Labor Turnover report from the U.S. Bureau of Labor Statistics, the great resignation trend goes upwards again in November with a record 4.53 million Americans quitting their jobs.
Statista, a market and consumer data website, reported that, “The number of Americans quitting has now exceeded the pre-pandemic highs for eight straight months, as employers, especially in low-wage sectors, are struggling to fill open positions.
“There are multiple reasons for this great resignation trend, but one of the biggest drivers is that many workers are no longer willing to put up with the pay and/or working conditions they accepted prior to the pandemic. The pandemic has led many people to reevaluate their career aspirations and their priorities and what they want to do” says Lilia Stoyanova, CEO TFY ( Transformify Ltd).
Companies are now trying different ways to encourage workers to stay— like by providing free food, gym memberships, gift cards and letting dogs come to the workplace, providing hybrid work structure etc. But the fact that employees are leaving for new and different reasons means that companies should consider new and different incentives.
There is a powerful financial incentive to keep current employees in place. The Society for Human Resource Management (SHRM) reported that on average it costs six to nine months of an employee's salary to replace him or her. For an employee making $60,000 per year, that comes out to $30,000 - $45,000 in recruiting and training costs.
Five employee retention tips for employers to survive the Great Resignation
So, we've taken a look at why and how more people are quitting their jobs. This section talks about the things companies can put in place to prevent their businesses from being affected by the Great Resignation. Here’s four of our top tips to tackle the trend of great resignation.
1. Create a culture where employee wellbeing comes first.
Speak with managers and team leaders to make sure you’re not setting the bar too high, and expectations are at a realistic level. It’s good for managers to have daily or weekly meetings with their teams to judge employee workloads and capacity. These don’t have to be long meetings — stand-ups work fine — but it’s a chance for people to say what they can and can’t do. It’s important for managers to ask their employees the all-important question: “Does anyone feel overstretched at the moment?” This simple act of caring shows employees that they’re not just seen as a resource.
2. Provide Employee Perks and Benefits according to employee needs.
Many perks that companies provide, no longer carry the same weight with workers, or are not applicable for remote workers. Thus companies should do an internal research to understand what their employee needs and spend money on providing those benefits. Companies looking to combat The Great Resignation must adjust their workplace to reflect a new social contract at work and a significant shift away from the ‘culture of family’.
3. Reward Productivity and Results.
Companies should reward their employees based on productivity instead of hours worked. Workers enjoy greater work-life balance when they have autonomy over their work schedule. Employers can provide more flexibility to employees without sacrificing the work by setting clear expectations about what work an employee is responsible for completing–not when, how, where or how they are supposed to work.
4. Provide more flexibility
Employers should not push their workers for a 9-5 schedule and in-office environment. Flexibility and addressing employee concerns should become the center stage and is one of the most effective ways to both retain employees and attract new talent. A research was conducted on what employees hope to see from employers this year. Top of the wish lists for 2022 were flextime and a four-day work week. It’s increasingly important for employers to consider the asynchronous work week, empowering employees to balance priorities like childcare and appointments, with work commitments.
5. Empathize with your employees
Lastly, it is important for companies to start taking the time to understand—and empathize —with a worker's conditions within their organization, and understand the individual struggles, desires and values, which can be the key to an organization’s success. And it goes without saying that a great employee experience can lead to increased talent acquisition and retention. This is even more true now as everyone adjusts to a new hybrid work reality that removes some of the geographical limitations on talent, leading to increased competition for that talent.