A Wave of Employee Turnover Expected
A recent LinkedIn survey of jobholders cited “shelter in job” as a reason most employees are remaining in their current role. 60% of them are waiting for the pandemic to be over before seeking a new position. All of these factors contribute to LinkedIn predicting a post-pandemic wave of employee turnover.
With Covid rates declining in many areas and vaccines becoming more widely available, we are starting to see signs of this becoming a reality. Businesses are quickly reopening, and people are beginning to feel more comfortable leaving their homes and traveling once again.
The result is likely a big boom in hiring to meet pent-up demand. The national unemployment rate was 6% in March 2021, down from 14.4% in April 2020 during the height of pandemic layoffs.
There are many reasons why employees may want to move on to a new opportunity, including burnout, higher pay, and a better work-life balance. It’s crucial that employers recognize that much has changed in the past year and should not expect a return to the former way of doing business. Instead, employers should address these areas to increase employee engagement and reduce turnover.
Begin by identifying the talent and skills needed to grow post-pandemic. Engage high performers and focus on career growth. Be more transparent about career advancement opportunities and compensation.
Consider conducting a stay interview with your team to learn about their career aspirations. A stay interview is an opportunity to ask for employee feedback to learn more about their experience with the organization, what keeps them motivated and engaged (or not!).
Succession planning is critical but overlooked in the managing of a business day today. It’s essential to be proactive in preparing someone on your team to be the next rising star to ensure your business is running smoothly.
Ensure you have an effective rewards and recognition program in place that recognizes your top performers. Competitive compensation is essential to employee retention, yet many employers were forced to freeze wages or cancel bonuses to survive. Now is the time to review those actions and assess your compensation strategy before turnover kicks in. Most employees expect a 10-15% increase in pay when moving to a new job, but you may find that rewarding employees now will stave off having to make a higher counteroffer later.
Are you offering work-life balance options? The research is in, and it tells us that many employees no longer want or will accept working in the office five days a week or enduring a long commute once again. While working remotely every day can have its drawbacks, many employees are expressing a desire for a hybrid working arrangement such as working at home 2-3 days per week.
Listen to your employees. The pandemic has put a tremendous strain on everyone; by conducting employee surveys and encouraging open dialogue, companies can create a supportive environment. Companies that are more employee-centric are likely to have higher engagement and less turnover.
FutureSense is here to help with any of your recruiting or HR needs.
Contact us at info@futuresense.com
