While the grip of the Great Resignation is beginning to relent, the number of Americans quitting their jobs remains high, at a total of 46.6 million voluntary quits in 2022 compared to 47.4 million in 2021.
Many reasons have been given for the quits, among them people looking for:
Better benefits
More flexibility
More money
Growth opportunities
Better treatment by leadership, management, and peers
A break due to burnout
To pursue a new career path
A better alignment with company values
Some also reported quitting because of health risks.
What Employees Want
The time for self-reflection during the pandemic gave people a chance to figure out what’s truly important to them in an employment relationship. Employees would like:
A healthy work-life balance
Autonomy to set their own schedules
To feel supported and appreciated
To feel valued
To feel as though their voices are heard
Access to resources that allow them to do their jobs more effectively
More growth opportunities
Forward-thinking companies are listening and learning from their current employees – the ones they’d like to clone – why they stay and what will keep them working for the company. Other companies are spinning their wheels as they make demands that push top performers to leave and keep talent from looking at them as ideal places to work. A good example would be companies that have required all their employees to come back into the office to work rather than asking them if that’s what they want to do. LiveCareer highlighted this in their recent study,
which found that 81 percent of professionals enjoy working remotely, and 65 percent said remote work has positively affected their work-life balance and mental health. Employees have had two years of successfully working from home, and they are reluctant to give up that flexibility – even if it means quitting their jobs.
So, what can you do to attract and retain top talent in today’s marketplace? Here are four suggestions.
1. Look outside the traditional employment model.
Even though most employers believe the labor shortage is a temporary disruption, J.P. Morgan predicts it will last for a few more years. If that’s true, you should consider
nontraditional ways to find and retain talent. That means looking at independent
contractors (also called freelancers). Many of these contractors created their own
businesses after quitting their last employer (or after being furloughed). Voxreports that the number of independent US workers grew by 34 percent last year.
These gems have talent and experience and can be plugged into almost any role – and they can be easily released once a project is completed. Indeed, independent contractors sign on for specific projects that need their expertise and then move on to the next project. It’s a win-win all around.
The future of work is flexibility, which ranks second only to compensation according to Future Forum Pulse’s latest survey. That data revealed 93 percent of workers want a flexible schedule, and 56 percent are open to new job opportunities that provide that flexibility. By giving employees the trust and freedom to complete their work outside of the usual 8-5 schedule, you can appeal to a broader talent pool while retaining your existing talent.
2. Create more inclusive policies.
When is the last time you looked at your policy manual? If it’s been a while, you
probably need to update your policies to be more inclusive. Current and prospective employees want to work for companies that care about them as individuals rather than just their work.
Employees are facing issues like mental health problems, care taking for family members, infertility, pregnancy loss, or personal health issues. Failing to acknowledge stressors like these can destroy an employee’s loyalty and trust in you as an employer. Set aside time to establish flexible working arrangements, improve mental health programs, and update parental leave policies. Also, consider instituting a floating holiday calendar with swappable holidays. Non- Christians have different spiritual, religious, or cultural beliefs. Having a bit of flexibility in holiday time off can create a more inclusive workplace that retains and attracts talent you need.
3. Invest in the Employee Experience
Pay raises, training, and benefits are all good things to invest in, but your company
culture is just as important. “A toxic company culture is 10.4 times more likely to
contribute to attrition than compensation,” a recent MIT Sloan Management Review
research highlight says. Employees would rather be unemployed while they search for a job than remain in a sick work environment. How can you improve your employee experience? Allow them to be actively involved with the decision-making since they’re the ones being affected by decisions typically made by the higher-ups. To retain and attract top talent, actively remove hierarchical barriers, and focus on creating a partnership with your people. How do you do that? By opening lines of communication, asking for feedback, encouraging employees to speak up, and ensuring their concerns are addressed.
4. Be transparent with pay bands.
Everyone wants to be compensated fairly for their work. The only way people are going to trust pay is fair is to be open with your pay bands. Payscale’s latest Fair Pay Impact Report revealed that employees who believed their organizations weren’t transparent about their pay practices were 183 percent more likely to look for another job. When employees believe there was transparency, they were 65 percent less likely to see out other opportunities. If you’re not paying your employees the market rate now, you’re setting yourself up for a gradual exodus, which will lead to having to replace those employees with new employees whom you’ll have to pay the market rate. Better to raise people to market rate now rather than lose them later. Turnover, of course, is inevitable, but you can stem the tide of top talent loss by stepping back and talking to your people. Find out what attracted them to you; find out what makes them stay. That information is powerful when creating your recruiting tactics – and golden in your efforts to retain.
To learn how to attract and retain top talent with in your organization, fill out of Customer Success Evaluation here to get started!