- 4 million employees left their organizations in April 2021 voluntarily
- Only 74 percent of employees in 2021 agreed that it would take a lot for them to leave their current organization as compared to the 81 percent in 2020
- Only 43 percent of exiting employees said that they were valued at their organization
Employee retention is one challenge that organizations from every industry are currently facing at a rising pace. It seems like a matter of a generation or two ago where it was a tradition for workers to finish acquiring relevant skills and enter a company only to stick with it till retirement. However, today things are different. Although a lifetime commitment is something no employer expects today, striking that balance to achieve an average, healthy employee turnover is crucial for the success of any organization in the long run.
What’s The Reason Behind This Rising Employee Turnover?
After the tumultuous rise and fall of the economy in 2020, recruiting the top talent and retaining it is one challenge that no organization has been able to beat yet. The great resignation has indeed negatively impacted organizational cultures while disrupting the momentum of the business.
On one hand, low unemployment rates have promoted wide gaps in the job market, on the other, employees’ rising confidence in the market is driving them to change from their current jobs.
This not only adds to the replacement costs of organizations but also deprives them of the valuable expertise and company knowledge from the departing employees.
In most cases, the organizations bring it upon themselves. It is often due to the lack of investment in areas that drive engagement that leads to increased turnovers.
The primary reasons behind the great resignation drive are as follows:
- LACK OF EMPLOYEE RECOGNITION
- POOR LEADERSHIP COMMUNICATION
- INSUFFICIENT WORK-LIFE BALANCE AND FLEXIBILITY
- INADEQUATE FEEDBACK
- NO COMPETITIVE BENEFITS
- LITTLE TO NO CAREER GROWTH OPPORTUNITIES
The last point is pretty crucial and one of the major drivers of this resignation wave. As per a survey from Instructure and The Harris Poll, lack of career advancement is one of the biggest reasons for employees leaving their existing organization. A business insider article also mentioned that employees want the managers to help grow their careers. When the bosses fail to step up and do so, they leave.
TROUBLESHOOTING: WHAT CAN ORGANIZATIONS DO?
While it might be challenging for every scale of the organization to cater to its individual employee expectations, one of the most effective ways is to leverage technology. With the help of a result-based performance management system, employers and authorities can align and motivate teams respectively to improve retention as well as productivity. Here’s how this technology can prove lucrative:
- Identifying and highlighting team’s skills
- Detecting skill gaps to take appropriate measures
- Improve employee-employer interactions for better engagement and relationship
- Empower workforce through a regular genuine feedback cycle
- Boost accountability to promote a deeper understanding of respective responsibilities and roles
A strong and successful long-term relationship thrives on a two-way communication system where even the organization listens to its employees. This way, they feel equally valued that further boosts their motivation to work. The new and unique retention and turnover challenges have made even the best companies reflect on their existing practices and systems. If there’s one thing that every top organization agrees to is that ultimately it’s the employees that drive their business to success.
Employee turnover is a fact of the modern business world. However, too much of it can make companies lose out on thousands of dollars spent over hiring, onboarding, and training, along with a loss in productivity.
Leveraging an intelligent tool like a result-based performance management system can help an organization strengthen and amplify its retention and attraction initiatives. If you want to learn more about it, browse our website or connect with us directly.