It’s no secret that workers are quitting rapidly, with some leaving the workforce entirely. According to a report by the U.S. Bureau of Labor Statistics, more than 4 million workers voluntarily quit their jobs every month from November 2021 to March 2022. It’s “The Great Resignation,” and it’s making it hard to be an employer.
The Great Resignation
The Great Resignation highlights one of the highest employee turnover rates in the U.S. labor market. This pandemic-driven exit from the labor force had the number of people quitting jobs hit an all-time high in November 2021.
The exodus has been marked by workers seeking more flexible working conditions, better benefits, and career advancement. Workers gave several reasons for quitting their jobs, including low pay, no career advancement opportunities, feeling disrespected by management, and lack of flexibility in choosing working hours. Others said relocation and Covid-19 issues were also key reasons for the high attrition rate.
In 2021, job openings swelled to historic highs, and companies worked to protect the talent they had. There was also a significant increase in wages as businesses competed for talent.
The Great Resignation continues to linger into 2022 and may stick around longer. Currently, almost half of the U.S. labor market employees are looking for a new job or plan to leave their jobs soon. Also, the U.S. unemployment rate was 3.6 percent in March and April—the lowest since early 2020.
What businesses can do to keep people from resigning
The number of those quitting jobs in 2022 continues to adjust seasonally even as the pandemic effects subside. Companies that want to retain their employees during these challenging times can rely on several strategies, including:
- Providing employees better benefits
- Showing appreciation for employees
- Creating seamless hybrid workplaces
- Prioritizing employee well-being
- Investing in employee retention
- Creating remote work opportunities
Here is a look at what businesses can do to keep their employees and attract top talent to fill jobs.
1 – Show appreciation
Employees need to be valued and appreciated more often. You can easily accomplish this by thanking them for their efforts and commitment at work and getting to know more about their interests and where they want to be. While you can’t stop them from quitting, a little measure of appreciation can help change their mind if you engage them early and often.
2 – Offer better benefits
Employee benefits are a great way to keep employees engaged and satisfied at their job. As an employer, you need to provide meaningful employee benefits.
The right benefits help your employees reduce stress and live better lives. That, in turn, drives higher productivity and satisfaction in their work. Some examples of those benefits include health and wellness plans, commuter benefits, meal plan benefits, on-demand pay, micromobility commuting, and any other benefit that’ll make them feel valued.
3 – Offer greater work flexibility
The last two years made employees value the benefits of an excellent work-life balance. Many employees who quit their jobs during the pandemic cited a lack of remote working options. Companies that offer flexibility to their workers reported less employee turnover. Offering a flexible work-life balance, a hybrid or flexible work schedule, or remote work opportunities can help attract top talent and aid in retention.
4 – Better employer branding
An employer brand is your reputation and how current and potential employees view you among the workforce. Creating a good employer brand is essential in influencing your reputation as an employer and positively transforming the dialogue surrounding your company. This can give you an upper hand in attracting and retaining top talent.
How important is employee engagement?
Employee engagement shows an employee’s commitment and connection to a company. It’s one of the best drivers of business success if you create it among your employees.
Employee engagement is a valuable strategy to improve work culture, retain talent, increase productivity, and build better employee-employer relationships.
Studies on employee engagement and commitment reveal that employees who feel more engaged in their work are more likely to commit to the organization. Employers who want to increase employee engagement can do so through:
- Supplying the right tools to employees
- Giving employees individual attention
- Providing training and coaching
- Listening to employees’ needs
- Recognizing employees
Employees will always be open to changing jobs, with a majority longing for better pay and workplace flexibility. The latest trend since the start of the pandemic has forced employers to increase their response to those trends. Now more than ever, employers are responsible for ensuring that workers’ needs are taken care of, and they are rewarded for their performance. Ultimately, this recipe will significantly reduce the high employee turnover.
If your business is seeking benefit solutions for your employees, Edenred has a complete list of programs to help you attract and retain the best talent in your industry.
