How to Tackle Top Factors Affecting Employee Retention
The Great Resignation has become a hot topic recently, driving more and more people to quit their jobs and reconsider their work and life values, seeking the perfect balance between them. Employee turnover statistics are intimidating.
Knowing that 24 million American workers have left their jobs between April and September 2021, setting an all-time record, entices business owners across the country and industries to search for the reasons behind the Great Resignation phenomenon, so that they can take effective steps and retain valued employees.
Most media discussions on this topic focus on poor pay as the crucial reason for employee dissatisfaction. Although adequate compensation plays an important role in employee retention, it is not at the top of the list of the factors that make them quit their jobs.
According to an MIT Sloan Management Review, dissatisfaction with wages ranks 16th among other factors that may cause employees to leave their current jobs. Toxic company culture tops this list, showing that it’s ten times more important than compensation. Besides toxic culture, the most prominent factors that employees find crucial when deciding to quit are:
- Toxic company culture
- Job insecurity
- Lack of employee performance recognition
- Inadequate response to Covid-19
This article will analyze these top 4 reasons for higher employee turnover, offering you effective solutions you can apply to avoid these pitfalls and keep the high-quality employees within your teams.
Toxic Company Culture
Most employees describe a toxic workplace as one lacking diversity, equity and inclusion, even though these terms may be included in their mission statement.
People want to feel respected and heard at work and if you fail to provide a supportive working environment, offering equal opportunities for all, you can expect a massive resignation wave coming your way.
The fact that this factor tops the list should motivate you to revisit and revise the core values that your company fosters.
The Covid-19 pandemic came suddenly, disrupting every aspect of our lives. Besides worrying about staying healthy and safe during the global health crisis, people stressing about their job and income security. The pandemic-related restrictions forced many business owners to lay off their staff or shut down permanently, taking employees’ anxiety to the next level.
The major Covid scare may be over but the fear of losing a job seems to be stronger than ever.
When the company’s future seems not so bright, employers reach out for unpopular measures, laying off employees, leaving remaining staff with an increased workload, driving them to overwork, and finally quit due to mental and physical exhaustion.
When company reports start showing a decline in profit or productivity, many employees will quit their jobs, seeking more stable working environments that offer significant job security.
Lack of Recognition
This is one of the major signs that you’re dealing with a toxic workplace. When managers fail to recognize outstanding achievements and reward high performers, setting them apart from those who fall behind, they risk losing the most valuable workers.
This especially applies to Millennials who seek instant gratification and evaluation of their work.
If you want to provide frequent, objective, and real-time performance evaluations, making sure that overachievers are rightfully recognized and rewarded, invest in advanced solutions like software for employee monitoring.
Poor Response to Covid-19 Crisis
The global health crisis has changed the perspective of the workplace, emphasizing the importance of adequate healthcare and employee wellbeing policies.
Employees who were frequently complaining about their company response during the Covid-19 pandemic were most likely to quit their jobs.
Now that you are familiar with the crucial factor that may lead your employees to leave your company looking for better working conditions, here are several effective solutions you can apply to enhance employee experience and keep top talent.
Offer Lateral Career Opportunities
Not every employee is interested in climbing the corporate ladder. Many of them want new challenges and opportunities that may make their work exciting. For this reason, offering lateral career opportunities – new jobs, and responsibilities without promotion may be the step you need to take to keep employees in your company.
Many workers may choose this option because it can offer a better work-life balance, or they want to learn new skills and take their career in a new direction. For this reason, lateral career opportunities are 12 times more likely to make employees stay in your company than promotions.
Create Various Company Events
One thing that the entire business world learned from the Covid-19 era is that people need human interaction. And that numerous Zoom hangouts can’t replace an in-person water cooler atmosphere. Therefore if you want to run tight-knit and highly productive teams, make sure to create opportunities for employees to meet and spend some quality time together.
You can organize happy hours, team buildings, or exciting company road trips, bringing workers together and sharing your core values. In this way, you may build your relationship on mutual trust and loyalty.
Provide Remote Work Options
Remote work has proven to be one of the rare positive things that emerged from the Covid-19 crisis. Once the employees experience all the benefits that work from home offers, they are more reluctant to go back to the office full time. Also, the more employees talk about remote work in positive terms, they are less likely to leave their jobs.
So if you want to keep your retention high, you should offer remote work or hybrid models to your employees to enhance their job satisfaction and their performance.
The Great Resignation may be a serious issue, but not an unsolvable one. You can use this analysis of the top reasons for high employee turnout to identify the weak spots in your company. You need to promote a culture based on equal opportunity for all, trust, and respect.
Also, try to listen to your employees’ needs and do your best to meet them. This is how you can create teams of satisfied and loyal workers.