How Teams Are Retaining Employees Right Now
As the economy showed signs of returning to its pre-pandemic normalcy, it brought along some challenges. Resignation rates fell drastically in 2020, when the raging pandemic hit human civilization, plunging everything and everyone into a state of dread and uncertainty; however, from mid-2021 onwards, there was a shift in the resignation trends and patterns. It was the beginning of what we now know as the 'Great Resignation' or the 'Big Quit'- an ongoing trend wherein employees are quitting on a mass level.
The second half of 2021 is when the great resignation was in full swing; a study by the US Bureau of Labor Statistics suggests that in November 2021 alone, some 4.3 million people quit their jobs voluntarily. Among those who left jobs, the percentage of low-wage workers was significantly higher than their high-wage counterparts. But how did this seismic shift in employment patterns happen? What factors drove so many workers to leave the security of a regular job?
While job dissatisfaction is not new, culture and values are more important than ever. The underlying causes are many, but a few crucial factors that acted as triggers include low wages, job insecurity, lack of recognition, and poor Covid-19 response. A toxic corporate culture is another issue fuelling mass resignations globally.
Growth in the number of resignations could become a concern for economies everywhere. For corporations, it is an opportunity to sit back and reflect on their organizational policies. The need of the hour is for employers to act responsibly to retain their skilled workforce.
Why Are So Many People Leaving Their Jobs?
We had briefly touched on the possible reasons behind the mass job dissatisfaction in the section above. It is now time to look deep and assess the probable causes.
Not Feeling Valued Enough
Aside from salaries and benefits, job satisfaction is one of the indicators of whether an employee feels valued or not. From setting your business apart from competitors to improving brand image, employees are the ones that drive organizational growth; hence, employees not feeling valued enough has a detrimental effect on their mental health. As an added bane, if the managers are not approachable or appreciative, it would be challenging to stop employees from seeking better opportunities elsewhere.
Jobs in security is also another reason why employees experience a generalized fear about not being able to hold their job. During termination looms, expecting employees to remain relaxed, focused, and productive would be wrong.
Toxic Work Culture
Toxic work culture is a leading cause of great resignation across the United States. According to reports, one out of every four members leaves their jobs due to the toxic work culture. From low compensation to long work hours, biased behavior, and lack of appreciation, toxic work culture can take many forms.
How Important is Employee Retention?
To maintain successful business outcomes, it is crucial to stop top talent from leaving the organization. A strong workforce is, after all, vital for organizational well-being and success. Employee retention lowers costs incurred for recruiting, interviewing, onboarding, and training new employees.
Furthermore, experienced workers are familiar with organizational processes. A new employee will take time to adjust and figure their way around. Hence, employee attrition leads to decreased productivity.
The job market is a closely-knit network of professionals, thanks to online job boards and portals. Every employee wants to work for a company that values inclusivity. Employees dissatisfied with your organization may choose to speak openly on a public forum, causing serious brand imagery issues. Therefore, it is always advisable to retain employees, hear them out and figure out a way to solve their problems.
The value an employee brings to the company through commitment and diligence increases their tenure there. Organizations, therefore, are implementing strategies to retain their human resources.
Can The Great Resignation Be Stopped?
The resignation rate is at its highest point in history, demonstrating the size of the 'Big Quit' and the issues it brings with it. However, looking at it from the employer's standpoint, not all is lost.
Aside from better pay packages, employees also want the flexibility to work remotely. In fact, for many, being able to function from the comforts of their homes is a perk bigger than an attractive salary package. No wonder now many companies are trying to reduce working hours and introduce flexible work weeks.
A few steps in the right direction would make things simpler. Hence, there is a chance that the great resignation can be prevented and managed.
Strategies Businesses Use To Retain Employees
Just like there are reasons for employee resignation, there are possible ways to retain them. When businesses are willing to offer better perks and growth opportunities, their skilled employees are more likely to stay back; let us now look at five employee retention strategies by which companies can retain hardworking employees forever.
Recognizing Employee Contribution
Rewards and recognition for the employees majorly contribute to employee retention, as they help motivate them by developing a sense of loyalty. Further, it enhances their happiness levels, giving them the confidence to take up challenging tasks with a positive mindset. Due to this, they are less likely to leave and look for other opportunities.
It promotes a positive work culture among the employees by creating healthy competition between their peers, thus, improving overall employee loyalty. Last but not least, it helps increase customer satisfaction because when employees are appreciated and acknowledged, they show more effort towards improving customer satisfaction.
Creating Paths For Growth
Every employee is unique, with a unique set of goals. They all seek growth and do not want to be in a fixed daily work routine; such monotony at work will make the employees less innovative and rigid.
To promote employee growth, it is vital to re-evaluate their performance by creating a system that aligns with the organizational goal. A performance management tool would be ideal, helping employees create their goals and share feedback. Also, it is essential to provide proper training and support employee development through comprehensive onboarding and on-the-job training sessions.
Focusing On Flexibility
Flexibility is always the best answer to better employee retention because the pandemic has made the workforce understand the benefits of working from home. It is also true that making the work 100% remote can lead to increase in productivity.
Organizations can expect better employee retention and a loyal workforce by creating flexible working options. To overcome the gap and balance remote work and working from an office, employers may opt for a hybrid working model where employees can be called to the office whenever the need arises. Employees would feel more comfortable as, with flexible work models, they can take the time for themselves.
Celebrating Team Wins
Celebrating wins with your teammates is a great way to achieve a particular goal and keep the work environment healthy. Sometimes, celebrating difficult situations helps promote positivity, leading to better work culture.
This mindset and work culture will ultimately help retain employees for long. These factors will also lead to an improvement in performance and productivity. It certainly gives hope that life and work are challenging, but you need to take action to build something up.
An organization with powerful employee values is more successful at retaining employees. By providing value, businesses can experience 21% greater profitability, 17% higher productivity, and 10% higher customer ratings. But, what does providing value indicate? It means giving your employees rewards such as stock options, soft perks and time off, career growth, and education opportunities.
Such rewards give employees a sense of purpose and support, automatically driving better performance and productivity.
Human resources work towards business growth and are thus crucial for your company. Because they can streamline and speed up the development of a business, it is essential to retain your top performers.
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