How do you address the key factors affecting employee retention?

The Great Resignation has become a hot topic of late, causing more and more people to quit their jobs and rethink their work and life values, in search of the perfect balance between them. Employee turnover statistics are intimidating.

Knowing that 24 million American workers left their jobs between April and September 2021, which is a record, is enticing entrepreneurs across the country and industries to seek the reasons behind the Great Resignation phenomenon so they can take effective steps and value employees. preserve.

Most media discussions on this topic focus on poor pay as the critical reason for employee dissatisfaction. While adequate compensation plays an important role in employee retention, it is not at the top of the list of factors that cause them to quit their job.

According to an MIT Sloan Management Review, wage dissatisfaction ranks 16th among other factors that can cause employees to leave their current jobs. Toxic corporate culture tops this list, showing that it’s ten times more important than compensation. In addition to toxic culture, the most prominent factors that employees consider to be crucial in the decision to quit are:

  • Toxic corporate culture
  • Job insecurity
  • Lack of recognition of employee performance
  • Inadequate response to Covid-19

This article analyzes these 4 top reasons for higher employee turnover and provides you with effective solutions that you can apply to avoid these pitfalls and keep the high-quality employees on your teams.

Toxic corporate culture

Most employees describe a toxic workplace as one without diversity, equity and inclusion, even though these terms may be included in their mission statement.

People want to feel respected and heard at work and if you fail to provide a supportive work environment and equal opportunity for everyone, you can expect a massive wave of layoffs.

The fact that this factor is at the top of the list should motivate you to rethink and revise the core values ​​your company nurtures.

Job insecurity

The Covid-19 pandemic came suddenly and disrupted every aspect of our lives. In addition to concerns about staying healthy and safe during the global health crisis, people are concerned about their jobs and income security. The pandemic-related restrictions forced many business owners to lay off or close their workforces permanently, raising workers’ fears to the next level.

The great Covid fear may be over, but the fear of losing a job seems stronger than ever.

When the company’s future doesn’t seem so bright, employers turn to unpopular measures, lay off employees, leave the remaining staff with an increased workload, lead to overtime and eventually quit due to mental and physical exhaustion.

When company reports show a decline in profits or productivity, many employees will quit their jobs and look for more stable work environments that offer significant job security.

Lack of recognition

This is one of the main signs that you are dealing with a toxic workplace. When managers fail to recognize outstanding performance and reward high performers, which sets them apart from those who fall behind, they risk losing the most valuable employees.

This is especially true for millennials seeking instant gratification and evaluation of their work.

If you want to provide frequent, objective, real-time performance reviews and ensure that overachievers are properly recognized and rewarded, invest in advanced solutions such as employee monitoring software.

Bad response to Covid-19 crisis

The global health crisis has changed the perspective of the workplace and emphasizes the importance of adequate health care and well-being policies for employees.

Workers who frequently complained about their company’s response during the Covid-19 pandemic were most likely to quit their jobs.

Now that you are familiar with the critical factor that can cause your employees to leave your company in search of better working conditions, here are several effective solutions you can adopt to improve the employee experience and retain top talent.

Provide Lateral Career Opportunities

Not every employee is interested in climbing the corporate ladder. Many of them want new challenges and opportunities that can make their work exciting. For this reason, offering lateral career opportunities — new jobs and responsibilities without promotion — may be the step you need to take to keep employees in your company.

Many employees may choose this option because it can provide a better work-life balance or because they want to learn new skills and take their careers in a new direction. For this reason, lateral career opportunities employees are 12 times more likely to stay in your company than promotions.

Create various corporate events

One thing the entire business world has learned from the Covid-19 era is that people need human interaction. And that countless Zoom hangouts can’t replace a personal water cooler atmosphere. If you want to lead close-knit and highly productive teams, make sure you give the employees the chance to meet and spend some quality time together.

You can organize happy hours, teambuilding or exciting company outings, bring employees together and share your core values. In this way, you can build your relationship on mutual trust and loyalty.

Provide remote working options

Remote working has proven to be one of the few positives to emerge from the Covid-19 crisis. Once employees experience all the benefits of working from home, they are more reluctant to go back to the office full-time. The more employees talk positively about remote work, the less likely they are to leave their job.

So if you want to keep your retention high, you should offer your employees telecommuting or hybrid models to increase their job satisfaction and their performance.

last words

The Great Resignation may be a serious problem, but not an unsolvable one. You can use this analysis of the top reasons for high employee turnout to identify the vulnerabilities in your company. You must promote a culture based on equal opportunity for all, trust and respect.

Also try to listen to the needs of your employees and do your best to meet them. This is how you create teams of satisfied and loyal employees.