The Great Resignation continues unabated; currently, one in five employees says they plan to switch jobs next year.
Even companies that were once considered ideal job destinations are feeling the impact of this trend. A recent study shows the average tenure of a Google employee is only 1.3 years, making them one of the top ten companies where employees don’t want to stay.
And there are concerns that Amazon could soon run out of workers.
So, why are so many people continuing to quit, and what can employers do to stem the tide of departing workers?
In this article, we’ll take a closer look at these issues.
High turnover rates are often linked to inadequate leadership. McKinsey’s recent analysis of the reasons employees leave their jobs in record numbers showed that the most important factors were social and psychological, including not feeling valued by their organization or manager.
Common management practices that often cause people to leave include feeling underappreciated, micromanaged, and ignored.
Most people are happy to work hard during their contracted hours, but they also want to devote their time to themselves, their families, and their friends.
Unreasonable deadlines, consistently long shifts, unpredictable schedule changes, and the expectation to work after hours regularly can quickly take a toll on enthusiasm and loyalty.
Today, companies think they’ll be able to hang on to employees simply by offering them more money – but they’re sadly mistaken.
It’s not uncommon for people to leave a company and work for competitors that offer more attractive benefits and perks such as Earned Wage Access, paid time off and sick leave, retirement funding, health insurance, education support, or more flexible work schedules.
Organizations with high levels of employee turnover face considerable direct and indirect costs. The cost of recruitment can be significant, but there are also other unwelcome factors associated with losing employees, such as the loss of intellectual property, internal cultural disruption, the cost of training replacement staff, and the resulting productivity losses in the interim.
When employees quit, remaining colleagues are often expected to pick up the slack, which can harm their morale. Then there’s the issue of the organization’s reputation in the eyes of external stakeholders, especially clients who generally prefer the continuity of relationships.
Here are some tactics to consider if you’re looking to reduce the level of staff turnover in your organization:
As we explored above, most of what causes high employee turnover isn’t the work itself; it’s generally related to how people are treated. Are you treating employees correctly – the way you would like to be treated?
Leaders have a responsibility to represent their company’s moral compass. So, take time to reflect on whether you’re fulfilling that role.
As we discussed earlier, benefits are becoming more important to employees when they consider whether to stay with their employer or move on to greener pastures.
According to a recent report, improving company benefits is resulting in massive gains for employees and employers alike, with 64% of employees whose benefits had recently been updated saying they had no plans to leave next year:
If you don’t already, why not consider offering a financial wellness program? Your financial wellness program could include Earned Wage Access (EWA) to reduce the stress on employees associated with being short of cash in between paychecks.
Today, flexibility is valued by all employees, not just those who are desk-based. It’s just as important for desk-less roles, such as those working shifts in the healthcare, retail, and hospitality sectors.
Allowing employees to swap shifts with their colleagues quickly and easily is a practical way to offer flexibility and encourage them to stay with your organization.
Sure, people probably won’t stay with your company forever, but employees who leave don’t just leave holes; they can introduce unwelcome costs, and their departure can negatively impact the morale of those who stay.
You’ll never be able to make people stay, but there are many ways you can ensure they think twice about it.
Payactiv is the partner of choice for businesses seeking to help their people fully engage in work and life and remain loyal and happy in their work environment.
We’re the leading provider of EWA services that helps employees manage day-to-day finances and bills without taking loans.
Our app provides a holistic approach to financial wellness with services that help build financial resilience by saving towards short and medium-term goals. And our integration with leading HCM, payroll, and T&A providers makes it simple to offer a comprehensive financial wellness benefit to employees at no cost.
Learn more about Payactiv’s Service, or book your demo now.
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