A lot of companies claim to experience the so-called “Great Attrition” or “Great Resignation” phenomenon. But is it really happening? Does it really exist? If it does, do we have enough understanding of its root causes?
What is the Great Resignation?
In 2021, the US saw a massive number of employees resigning from their jobs. Many cited low pay and no opportunities for career advancement. Others quit because they felt disrespected at their workplace, there was not flexibility in their hours, and the benefits were poor.
The resignations left many companies dealing with high attrition rates, even after the negative effects of the pandemic have drifted off.
Although there’s no such thing as a “perfect organization,” it’s important to recognize the changing demands of the workforce. We would not want our employees, especially the best-performing ones, to leave and look for better career opportunities somewhere else. Thus, all these new demands and needs must be given attention, if not priority.
As employers, we should all look into these changing preferences and trends to understand how we can keep our employees within our organization. To ensure that our top talents stay on board, it’s vital to ramp up efforts to make our best employees feel valued and nurtured.
Why is Attrition Rate Important?
Employees will come and go; most will leave the company voluntarily for better opportunities, and others go because they’re at that retirement age. But when you’re seeing an upward trend in people leaving, it must be a cause for concern.
Attrition rate is a percentage of employees exiting your organization for a certain period. In contrast, employee turnover is short-term, which may not affect the company as much as employee attrition.
What Happens if Attrition Rate is High?
Your company is shrinking in terms of size and capabilities. When an uptick in resignations happens over a long period, your organization may be in jeopardy of losing its competitiveness in the market. Losing talent to other companies means you’ve lost their skills and competencies. It takes a long time to fill positions, especially critical ones requiring technical knowledge.
An increase in attrition rate may also affect morale at work. When other employees notice resignations, they may start to worry about their employment. High attrition rate also means your remaining employees will have to pickup the slack, which will mean burnout for some workers.
It’s important to track your attrition rate to keep operations going, minimize the cost of your hiring, and to maintain your company’s competitive edge.
Here are some ways to keep our talents from leaving:
HIRE RIGHT
The secret to a successful employee retention lies in the way you handle your hiring process. To begin with, hire people who possess values and attributes that align with your company’s culture and priorities. It is not just about how smart the candidate is but more importantly, how they fit into the organization. Look beyond their resume – check what they want and need.
COMPENSATE APPROPRIATELY
One common reason employees leave their job is the need for higher compensation. As an employer, ensure that your staff are well-compensated and that their contributions to the company are always valued. As other companies, including your competitors, offer enticing compensation packages and benefits, make sure your employees know that your office is open for discussion on matters related to salary negotiations, benefit adjustments, promotions, etc.
OFFER CAREER ADVANCEMENT PROGRAMS
Rewards and compensation packages must go along with opportunities for promotions and training for career advancement. Invest in the education of your talents so they can find more meaning and value in staying in the organization. With their new skill sets and proficiencies, they are in a better position to serve the company more efficiently. But more importantly, their quest for higher learning will inspire them to keep serving an organization that genuinely values their professional growth.
DEVELOP LEADERSHIP SKILLS
Giving your employees leadership roles is an excellent way to boost their confidence and make them feel trusted. Allow them to express their ideas and insights and let them handle their own teams. Empower them to make decisions within their teams and make sure they know why they are given certain responsibilities and limited authority as a leader.
Make everyone feel that they are valuable members of the team. Establish a good working environment, where everyone is welcome to share their thoughts and inputs without having to fear judgment.
PROVIDE FLEXIBILITY AND PROMOTE WELLNESS
Make your employees feel that the company cares for their wellness, mental health, and personal lives. Whenever possible, provide a flexible schedule so they can stay away from potential breakdowns and burnouts. If they find it more practical to work remotely, help them explore their options and provide their needs. It is also helps to allot paid vacation days to help them maintain a work-life balance.
CREATE A POSITIVE WORK CULTURE
Make time to bond with your employees and provide a fun and positive environment conducive to both working and socializing. Ensure that their needs are taken good care of and that they feel the importance of your connection with one another. Engage in light conversations with them during break times. Schedule beach trips and movie night-outs with the team to help them de-stress once in a while. By establishing a positive relationship with your employees, it is easier to foster loyalty.
COMPETE
Other companies are doing their best to attract exceptional talents to be part of their organization, and the last thing you would want to see is your company’s best performers choosing them over you. Strive to become an organization employees would be proud to be part of. Be a company that innovates, looks into the future, and acknowledges trends and competition, while complying with industry standards and staying true to your values and objectives.
In summary, giving your talents enough reasons to stay means redefining the way you value them. By providing them with a good working environment, better opportunities to lead and grow, as well as due recognition and compensation, you can successfully keep them on board to contribute to the success of your organization.
Attract and retain the right talent today, reach out to us.
