The Great Retention
Who thought we’d be where we are two years later! We’re still awaiting our post-Covid world as we’re still grappling with the pandemic. In the midst of Covid, or likely because of it; we’re dealing with an unprecedented labor situation.
The Great Resignation, while a catchy phrase, is real. People are re-evaluating their life and goals and leaving in record number. US average annual turnover is 57%, and of that 70% is voluntary. It’s affecting both ends of the spectrum. People with the most institutional knowledge are leaving the workforce early; and 33% of new hires leave within the first 90 days! Most citing a mis-match in expectations.
For every industry it’s an ongoing concern. For some – hospitality, healthcare, retail, etc. – it threatens their ability to operate.
What to do… There is obviously no single quick fix. The current environment has forced the wage raises needed in some instances, yet the issues persist.
While employees are citing a poor job fit as the reason for leaving, matching talent to job demands would seem the logical step. But a sense of desperation forces employers to fill voids quickly, making the problem worse.
Knowing the demands of each role and putting people where they’re most likely to thrive is a basic first step. And realizing that sometimes, hiring nobody is better than hiring anybody. Think holistically as to where candidates might fit best in your organization.
Too many employers act like the process ends at hiring. A critical aspect often avoided is effective onboarding. This will make or break a potential star. Much is written about effective onboarding, but it begins before the employee starts and is evident to them day one. We’re glad they’re here and want them to thrive. Have a plan, from pre-work and having everything ready when they arrive, to announcements, orientation day, check ins and a mentor.
Every company has one. Some good, some bad. Is yours open and honest; centered on the employee experience; mission- and vison-centric; flexible to work life balance? Culture affects turnover.
While pay is important, research says that 90% of workers would take lower pay to find a purpose.
While no one thing will ameliorate the current labor situation, some attention to several key things will make a difference.
Open Communication: We at PI Midlantic structure our meetings around the EOS process. Open and honest, focused, results-based, and having everyone on the same page.
It is important to have some flexibility, celebrate milestones and successes, fun, opportunities to grow and learn, and feedback that acknowledges the employees’ performance and contribution.
We’ll all get through the current situation. Some more successfully than others depending on the things we do today.
Steve Picarde Sr, Founder and CEO