how does your retention strategy fare against the Great Resignation?

We’ve been hearing a lot about the Great Resignation – the tidal wave of employees leaving their jobs – over the last 12 months and the impact it’s had on employees and employers alike. At the end of July 2021 in the United States, four million employees had freshly resigned and a record 10.9 million jobs were open.  

The Harvard Business review reported US resignations were highest in industries that had experienced extreme increases in workload demand due to the pandemic – like healthcare and technology. They also found it is being led by mid-career employees – those 30 to 45.1 It is thought to be fueled by several different factors from an increased demand for specific skills/experience to dissatisfaction or burnout.  

This pandemic has revealed many weaknesses in our various interconnecting social and economic systems and made us more aware of what stress and burnout tangibly feel and look like. Employees don’t necessarily need to be in “high-stress” industries like healthcare or technology to feel overwhelmed or dissatisfied. Surviving two years of a pandemic has made many people realize how precious time is and just how short life can be. Employees in the mid-career range who tend to have achieved a relative level of stability might be realizing they aren’t feeling fulfilled or appreciated in the work they do and they have the means to change their situation. 

For many employers right now, hiring new employees has proven to be difficult in part, because some people are asking for compensation significantly higher than industry standard. Likewise, prospective employees might seem like a risky investment because they want a level of flexibility companies aren’t comfortable or familiar with. Between employees leaving in droves and difficulties with hiring their replacements, employers across industries are being forced to reconsider whether their retention strategy can keep up with the evolving needs of their employees, and the general workforce.  

Time and effort should be put into determining reasons behind turnover in your business and then, if necessary, professional help should be brought in to help tailor a plan to address them. Here are three key things to reconsider when it comes to bolstering retention.  

1. Benefits 

In the midst of a global health crisis, the importance of a good benefits plan cannot be overstated. A survey from 2020 by MetLife found 74% of employees are concerned about at least one aspect of their wellbeing as a result of the virus. The same study found 69% of respondents feel having a wider array of benefits would increase their loyalty to their employer.  

Providing employees with access to things like supplemental insurance (e.g., spousal insurance, long-term care, disability, etc.), a tax advantaged 401(k), childcare support and paid sick days and vacation time can be the determining factor for employees who choose to stay in a job/career, especially if they have dependents. Going above and beyond the basics to include FSAs (flexible savings account) or HSAs (health savings account) will make working for your company that much more appealing. 

2. Flexibility 

While COVID may eventually become endemic and “fade away,” some of its effects, namely remote working, likely won’t be going anywhere anytime soon. There’s been a global mindset shift regarding in-person work and its impact on efficiency/productivity and as a result, flextime has quickly risen to the top of employment seekers’ “must have” list. A June 2020 survey from Fractl found that after health insurance, flexible hours and the ability to work from home are some of the most valuable, low-cost benefits an employer can offer. 

Employers (in industries and businesses where it makes sense), are going to have to embrace flexible work arrangements if they want to prevent losing employees to competition. Drafting a work-from-home protocol outlining the logistics of which roles can work from home, how often, and with what equipment and materials is the first step to adopting a more flexible work environment and ensuring employees are more productive because they are less stressed about their own safety and competing priorities (i.e., constantly changing health mandates, school age dependents, illness, etc.). 

Adopting practices and policies designed to improve overall health and well-being and work-life balance can include mandatory meal breaks, paid lunches for employees, no official work hours, Fridays off and the highly coveted paid parental leave.   

3. Recognize and reward top talent  

Top performing employees or high potentials (HiPos), according to a 2020 HR Exchange Article, are the drivers of success in any business. In complex occupations, they’ve been found to be 800% more productive than their counterparts, more likely to take on additional work and participate in extra projects and maintain and adhere to company values while doing so. 

Identifying these HiPos and recognizing (and rewarding) their outstanding performance is a start. Supporting them and making sure they have the necessary tools and resources to grow into more senior positions is the next step. Assisting them in mapping out their career paths within the company, providing ongoing development opportunities and helping to prevent burnout and overwork and removing concerns about job security are all ways an employer can work towards bolstering retention, and in doing so, create viable options for their own succession. 

On one hand, The Great Resignation is a hurdle for employers to overcome. On the other hand, it  clearly represents opportunity for employees. It’s a buyer’s market right now and employment seekers are shopping around for the best deal. As a business owner, one of the best ways to ensure your business is both attractive and competitive is to have a retention strategy that addresses current, real-world employee stressors and needs.  

It’s a hot topic right now but the truth is, retention is an important part of overall business strategy and a great way to build enterprise value, not just a band aid solution in times of crisis. Ensuring your strategies and processes are up to snuff isn’t just good for your employees, it’s good for your business.