Due to the tumultuous COVID-19 pandemic that was bestowed on the world just two years ago, we have been experiencing an unprecedented trend of job losses and tight labor markets, now known as the “Great Resignation.” In November 2021, the annual “quit rate” reached a 20-year high.
Now, you may ask yourself, “why are people quitting their jobs?” The Pew Research Center conducted a survey and found that inadequate pay (63%), lack of advancement opportunities (63%), and feeling disrespected in the workplace (57%) are the top three reasons that workers are quitting their jobs. Among these were other reasons including, limited childcare options (48%), limited flexibility (45%), working too few hours (30%), working too many hours (39%) and relocation (35%).
Interestingly enough, the requirement of a COVID-19 vaccine only accounted for 18% of all job resignations, despite the common belief that everyone is quitting or getting fired from their jobs because they are not vaccinated.
Because of this, business owners and employers are now having to restructure their entire hiring process. Here are five steps that you, as an employer, can take to avoid high resignation rates in your company:
Address how your employee’s needs and priorities have shifted
Like most people during the pandemic, employees’ lives have forever changed from the status quo they were used to. Employers must recognize that employees’ lives have altered dramatically since the outset of COVID-19. They’ve launched side businesses, taken on significant home projects, homeschooled their children, lost core family members and have a different daily pattern in general.
As a result of this, employers must communicate with their employees to understand their new needs, responsibilities and requirements. By doing this, an employer can demonstrate that they care deeply about their employee’s individual living conditions, which is critical. Not only will this decrease resignation rates within your company, but it will also make your employees feel like their needs are being seen and heard by their employer.
Employee burnout must be addressed
Because of the reasons listed above, employees have numerous responsibilities, more than ever before. Stress, as well as the uncertainty of what the future holds, have been constant worries for most. Creating a friendly environment is the first step toward preventing burnout.
Address your company’s work environment. Ask yourself the tough questions: Is it a place where employees are treated with respect and care? One in which they are at ease asking for assistance? Are my employees comfortable in our work environment? If the answer to these questions is no, you will want to consider changing the dynamics in your workplace environment.
Compassion can be demonstrated in a variety of ways, including through your communication efforts. Consider asking your employees regularly how they are doing and if their workload is too much. Offering support and encouragement regularly is another great way to demonstrate compassion to your employees when addressing burnout.
Reward staff who opt to stay
Despite common belief, the “Great Resignation” is affecting your current employees as much as your past. With co-workers leaving left and right, morale will be low for the employees who chose to stay at your company. Many of them will have lost friends and co-workers who they enjoyed being around and who kept them motivated. In addition, many employees will have to take on extra work to support the company’s loss, stretching them very thin.
To combat this issue, making a conscious effort to boost workplace morale at your company is essential. Maybe it requires you to hold a team-bonding seminar to get your staff more acquainted with each other, or maybe a team lunch to give everyone a chance to get to know each other without the stress of work. It’s also crucial to provide opportunities for advancement to your remaining personnel. When one employee leaves, it creates an opening for others. Employees will be grateful for any form of progress. Whatever it may be, following this tip will help your remaining staff members want to stay at their job, reducing the rate of resignation.
Provide competitive wages, compensation and benefits
As stated by the Pew Research Center, 63% of people quit their jobs in 2021 due to unreasonably low wages. This is especially important in today’s competitive job market. Offering higher salaries will reduce the number of reasons for present employees to look for work somewhere else. As a result, it’s important to rethink your compensation approach. Firstly, think about your budget and how much you can spend on staff compensation. Then, check over your employee compensation plans and set wage ranges that are suitable for each role. After that, you may adjust accordingly based on a person’s experience, current compensation, seniority and productivity.
If you are incapable of delivering basic wage adjustments, you could compensate employees in other ways to express your appreciation for their stay. Consider offering bonuses, worker benefits and extra paid time off to your staff, if wage increases are not possible at this time.
At the end of the day, workers just want to be appreciated by their bosses and given opportunities for different types of benefits to improve their lives. If you, as an employer can give that to them, the more likely they are to stay with your company.
Enhance the employee experience
Beyond wages, compensation and benefits, an optimistic employee experience is integral to retaining their talent. Important aspects of the employee experience include quality of employee-supervisor relationships and peer relationships, possibilities for evolution and expansion, a meaningful purpose in one’s work, bonuses, adjustable work agreements and convenient amenities included in your workplace environment.
In addition, other substantial pieces include social prospects, close to zero politics and gossip, fun events, ample working stations, access to nutritious meals and the ability to make your workspace feel more comfortable and homey with aspects such as natural sunlight, greenery and comfy seating.
To add, understanding what your competing companies are offering that is making them more attractive in the job market in comparison to your company is essential. Evaluate every aspect of your company and improve the aspects that need to be enhanced. Then, convey these enhancements to your employees and get their input about them.
In conclusion, the unfortunate “Great Resignation” is causing havoc in businesses and corporations of all sizes, across all industries and at all levels. Regardless, employers who apply tactics to counteract the massive influx of resignations can reduce the loss of the top-tier talent that your company strives for. Implementing these tips into your company’s everyday life can create a space where resignations are few and far between.