Recently, the Great Resignation has been a topic of great interest. It is causing more people to quit their jobs, reevaluate their life and work values and seek the right balance. The statistics on employee turnover are frightening.
The fact that over 24 million Americans quit their jobs between April 2021 and September 2021 is a record for American workers, encouraging business owners from all industries to investigate the causes of the Great Resignation phenomenon and take the necessary steps to retain valuable employees.
Poor pay is the main reason that employees are unhappy. This topic dominates media discussions. While adequate compensation is an important factor in employee retention, it’s not the most important factor that causes employees to quit their jobs.
An MIT Sloan Management Review ranked dissatisfaction regarding wages 16th on the list of factors that could cause employees to quit their jobs. This list shows that toxic company culture is ten times more important than compensation. Employees find toxic culture to be the most important factor in quitting.
- Toxic company culture
- Insecurity in the job market
- Inadequate recognition of employee performance
- Covid-19: Inadequate Response
This article will examine the top 4 causes of higher employee turnover and offer you practical solutions to help you avoid them.
Toxic company culture
Many employees define a toxic workplace to lack diversity, equity, and inclusion.
People want to feel valued and heard at work. If you don’t provide a supportive environment that offers equal opportunities, and respects everyone, then you can expect to see a lot of resignations.
This factor should be enough to motivate you and your company to reevaluate the core values it promotes.
Insecurity in the Workplace
The sudden onset of the Covid-19 pandemic disrupted every aspect of our lives. People worried about how they would stay safe and healthy during the global crisis. They also worried about their income and job security. Many business owners had to fire or close their doors permanently due to pandemic restrictions, increasing employee anxiety.
Although the major Covid scare is over, the fear of losing your job seems stronger than ever.
Employers reach out to employees when the company’s future looks dim. They lay off employees, leave them with an increased workload, drive them to exhaustion, and eventually quit.
Many employees quit when company reports showing a decrease in profits or productivity. They look for more stable work environments that provide significant job security.
Inadequacy of recognition
This is a sign that your workplace is toxic. Managers who fail to recognize and reward outstanding performance, setting them apart among those who fall behind, can lead to the loss of valuable employees.
This is especially true for Millennials, who are looking for instant gratification and an evaluation of their work.
You can provide regular, objective, and timely performance evaluations and ensure that overachievers get recognized and rewarded. This is why advanced solutions such as software for employee tracking are so important.
Poor Response to the Covid-19 Crisis
The workplace has been reshaped by the global health crisis, which emphasizes the importance of employee wellness and adequate healthcare.
Employees who complained about the company’s response to the Covid-19 pandemic were more likely to leave their job.
You now know the key factor that could cause your employees to leave your organization in search of better work conditions. Here are some effective ways to improve employee experience and retain top talent.
Offer Lateral Career Opportunities
Some employees are not interested in the corporate ladder. Many employees want to be challenged and offered new opportunities that can make their job more exciting. Offering lateral career opportunities, new jobs, and responsibilities, without the need for promotion, maybe the best way to retain employees.
This option is often chosen by workers because it offers a better work-life mix or allows them to learn new skills that will help them move their careers in a different direction. This is why lateral career opportunities are 12x more likely to keep employees in the company than promotions.
Create various company events
The Covid-19 era taught the business world one thing: people need human interaction. Indeed, Zoom hangouts are not a substitute for human interaction. If you want tight-knit, highly productive teams, ensure that employees have the opportunity to spend quality time together.
Happy hours, team building, and exciting company trips can all be organized to bring people together and share your core values. This will help you build trust and loyalty in your relationships.
Provide Remote Work Options
Remote work is one of the few positive outcomes of the Covid-19 crisis. When employees see the many benefits of working remotely, they are less likely to return to work.
To increase employee satisfaction and performance, offer hybrid or remote work to ensure high retention.
Although the Great Resignation is a serious problem, it’s not impossible to solve. This analysis can help you identify weak points in your company. Promote a culture that promotes equality for all and trust.
Listen to your employees and do your best. This is how you create loyal and satisfied employees.