The U.S. has reached record high 'quit' rates, and unfortunately, there is no sign that the quitting culture is ending anytime soon.
According to a new study from Gartner, the annual turnover rate is expected to increase by 20% compared to pre-pandemic levels. To put this into perspective, companies losing one-fifth of their employees in a year will now lose a quarter. This alarming statistic can impact a business's ability to sustain normal operations and growth.
What's causing employees to leave?
During the COVID-19 pandemic, employees had the opportunity to define what they truly wanted to do for work - and for what company. As it turned out, for many, their current job wasn't what they wanted – causing a spike in the number of quits across various industries and leaving behind many job openings.
Due to the surplus of openings, job seekers now have the advantage of shopping around for opportunities that offer higher pay, work flexibility, and better cultures. Employers know they are in a tight competition for top talent, which is why they are offering high salaries and attractive benefits that lure away employees from their current roles
Because your employees are likely receiving desirable offers from competitors, it is essential to ensure their satisfaction in their roles. Work flexibility is one of the most crucial factors when looking for new opportunities. Companies that do not offer flexible or fully remote options are much more likely to miss out on talent. Not only will candidates pass on jobs without remote work options, but over half of current employees state that flexible work policies will dictate whether they stay at their organizations.
Additionally, employee burnout has reached an all-time high. The talent shortage has led to overworked, underpaid, and disengaged employees, contributing to the quitting culture many companies are experiencing.
What can companies do?
As previously noted, flexible working opportunities are necessary for today's workforce environment. If a role can be done remotely, companies must offer flexible work options to avoid losing their top talent and potential candidates. According to Fortune, employees are the most satisfied with their job when choosing where, when, and how they work. Companies can successfully implement flexible work accommodations to retain and attract talent by building a culture of trust, empathy, and accountability.
Job seekers are also interested in finding companies that put employee wellbeing at the forefront of management strategies. People-centric cultures, professional development opportunities, and mental-health programs are all factors that have successfully attracted candidates.
Job posts that mention culture receive an average of 67% more engagement than average posts according to LinkedIn.
Enhancing company culture and employee retention strategies are vital to overcoming the quitting culture. According to Gallup, an employee will turn down a job offer with a 20% pay increase if they are highly engaged in their current role, while a disengaged worker can easily be lured away. To ensure employees are satisfied and experiencing a positive working environment, leaders should regularly collect feedback and build actionable strategies based on employee responses.
Another way to build a people-centric culture is to focus on candidate experience. You can set yourself apart from the competition through application optimization, streamlining technology, and fostering meaningful recruiter relationships. Ensuring both in-office and remote employees feel valued and heard is critical to a positive work environment.
Let us help.
Organizations should not consider 'back to normal' a goal to achieve. Leaders must be forward thinkers to create strategies that meet the current needs of employees and candidates in a post-pandemic world. An RPO partner like Hueman can help your organization develop a long-term plan to overcome recruiting challenges. Contact us today to for a no cost, no commitment talent acquisition consultation.