After millions of people were laid off in light of the COVID-19 outbreak in 2020, 18 months later, employers are having trouble finding enough people who are willing to work. So, let’s unpack the Great Resignation.
Essentially, the American workforce has quit their jobs at an unprecedented rate since the spring of this year. The U.S. Bureau of Labor recently reported that 4.3 million people quit their jobs in August, which was 242,000 more than July and set a record high of a 2.9% monthly quit rate. That means nearly 3% of the workforce in the U.S. quit in a single month last quarter.
Now what? While the labor shortage is out of our hands, there are a few things we can do to lessen the impact on business owners and our bottom line. And that’s by implementing countermeasures and incentive programs to retain existing employees.
Dealing with employee turnover is unavoidable. No matter how great things are at your company, losing and replacing employees is part of being a business owner.
However, when this begins to occur at a higher rate, especially within the context of our working world today, it might be time to change a few things. Frequent employee turnover can be costly and negatively impact the office morale. And at this point, there’s not a huge labor pool to dip from.
Here are some ways to deal with employee turnover and increase employee retention:
1. 1:1s – Periodically scheduling one-on-ones is a great way to let employees know that they can come to management with questions, concerns, or feedback, which is essential. This type of atmosphere can help you decrease and understand employee turnover. If employees feel comfortable enough to have candid conversations about their jobs, it can help you tremendously.
2. Employee surveys – Some employees may not feel comfortable confronting management about issues, concerns, and suggestions, so with surveys, you can use platforms like Google Forms to have employees anonymously provide feedback. Being proactive about hearing out concerns and making improvements can help you avoid losing top talent. Don’t knock the non-confidential tools though sometimes people would rather type their feedback than speak it, we’ve been using 15Five and tools like that are really effective for teams.
3. Take inventory – If you’re experiencing a high rate of employee turnover, take the time to learn why people have left. During exit interviews, ask questions. If they’re being let go, ask what contributed to their job performance. Understanding how satisfied they were at the company and their opinions on policies, resources, and support are useful in identifying the pros and cons of your workplace environment.
4. Replace smarter – During the hiring process, ensure that you’re thinking beyond a job candidate’s qualifications/what they can contribute to the company. Consider their career goals, personalities, and how they’ll fit in with the company culture. Don’t be afraid to bring other employees into the hiring process so that they can provide some insight into job candidates, too.
More Help With Employee Retention
Look no further! Start learning about what’s included in the people advisory services that we offer at Acuity. And if you’re a new customer and you’re interested in working with us, click here to find a time to talk with one of our team members and get started today!