The U.S. is seeing a Great Resignation wave with employees leaving their employers and going for greener pastures. For businesses to stave off a wave of resignation letters, company HRs must develop and foster methods that cater to these employees’ needs and desires. According to several worldwide surveys involving higher-level executives of multiple companies, what people want and what companies have has grown significantly apart.
What is it that current employees want from their employers? What would increase employees’ satisfaction with their jobs to ensure that they stay in their position? What are employees doing in preparation before quitting their jobs? This knowledge of why people are quitting in droves and businesses around the country are having problems filling these open positions could help them boost retention.
Is The Great Resignation Really An Issue?
Many companies have noticed a 30% erosion of some job categories. And, according to some industrial businesses, they’ve had a 100% turnover rate going back to March 2020. In the data science and technology sectors (along with others), employers are noticing a relentless wave of resignation.
And, the Federal Reserve Bank of St. Louis gathered data that echoes a steady yet dramatic increase in people “voluntarily” quitting their jobs during the pandemic in various sectors. The problem is that the labor market Great Resignation wave is unlikely to ease in the near future.
In one of the latest conducted surveys, more than 50% of respondents said they’d quit their job for another in the next year if they could.
What Can Employers Do To Boost Retention Numbers?
Since it takes companies longer to hire someone than employees to give a two-week notice and leave, employers must find ways to boost retention and increase recruiting efforts. How can this be done? It means getting on the same page as employees in terms of what they are looking for, incorporating this into the company. There are four categories that employees are looking for that companies need to focus on to boost retention. They are:
- Belonging
- Certainty
- Purpose
- Value
And, it’s not just keeping current employees but also recruiting new ones. It takes time to hire and train an employee to replace an expert in the field. It’s why boosting retention has become such a hot topic! So, what can companies do to make a significant impact on their retention numbers and keep the experts at their desks?
1. Improve Company Loyalty
Money is a huge factor in why people leave a job. If a company is to boost retention numbers, they must pay their employees well for the area they live in. Besides money, you need to have an attractive compensation package. This package includes providing a one-time bonus to employees, assistance with student loan repayment and offering them work-from-home benefits.
A change in compensation packages will also let you correct any pay inequalities.
Some companies have reported a “boomerang” effect where people who left for greener pastures return to their jobs thanks to the improvement in compensation plans.
2. Offer Growth Opportunities
What would you do to change an employee’s mind to keep them from resigning? The first thing to do is ask them what would get them to consider staying. When they give you their “desires,” find ways that enact them. Companies have gotten smart in holding retention interviews, finding out what would make an employee change their mind about leaving.
According to BCG research on employee engagement, employees job engagement hindered on how the job made use of their skills. To boost retention, employers must demonstrate to their employees that they are just as important as the new people they hire, and this can work by giving them some chances in growth and advancement.
Employees crave for vote of confidence from their employers, which is shown through advancement and other incentives.
3. Highlight Your Business’ Reason For Operation
Reason is a huge factor in the existence of your business, and it’s the critical reason employees choose to work there or not. Based on various data, a company that highlights its purpose in downtimes does better than if they did not do this. If you want to boost retention, you need to show employees there is a reason your company exists beyond making money.
Talk is cheap; show them how essential the purpose is.
4. Highlight Importance Behind Culture and Connection
While the work is important, it’s more important to foster connections with your employees and improve employees’ connections with one another. Social connections have seriously eroded during the COVID-19 pandemic, and companies can help rebuild and bridge the connection by focusing on this aspect.
5. Make Investments In Families
More companies are realizing the dire need for mental health resources, so they are now offering these services and focusing on the family first. Companies that recognize the sacrifices people made in the pandemic have a higher retention rate. It means they realize people need more paid time off, and parents need reliable daycare options.
Even if one employee needs more help than others, make sure they understand they are still a valuable asset to your company. Don’t make them feel bad for needing the extra help! They will give 110% of themselves when they are back on track.
6. Be More Flexible
Flexibility in work environments is necessary if a company is to retain employees. This means being flexible in the areas of time, place, career path and job description. Just accept the idea that flexibility is a must if you are to boost retention within the company. Go all out and encourage employees to devise teams that determine the work’s future. When people have a say in something, they’ll be more incentivized to stay there.
You may have specific qualifications in mind for a job posting, but the best candidates may not have those qualifications. Ease up on the requirements; especially if they have most of what you’re looking for, go ahead and interview them for the position. You can always train them to become the 100% person you want for your company.
The Great Resignation can end, but only if companies realize what they need to do to ensure their employees are happy and content with their positions. If you’re having problems retaining employees, enact the above techniques to help you create an atmosphere that is more inviting and inclusive.