The great resignation is proving to be quite problematic for corporate companies, and finding out about the cause of this issue is the first step to avoiding oncoming resignation waves in the industry. Ensuring your team members and companies do not face the crippling effects of the post-pandemic business world is essential.
The Great Resignation in Hindsight
Over the last months, there have been tidal waves of resignations worldwide. Organizational psychologists deem these changes a great resignation, primarily the Coronavirus pandemic's effect. People sitting at home due to lockdown restrictions have been re-evaluating their life decisions. Many workers have come to realize that they do not have much time left in the world and do not want to spend their time working at jobs they are not satisfied with.
Contemplating and re-evaluating during the lockdowns have provided them with mental reasons to change jobs and move to companies that offer more meaningful and valuable positions. This big shift is changing how businesses approach and access talent.
People quit jobs that they feel do not align with their values. Much of the workforce consists of millennials, and this generation is not eager to work simply for monetary gains. The new generation has new values that they want to focus on.
Millennials are also not very eager to have a long career in one company and tend to shift jobs more often. Resignations are common amongst people in their mid career, which means someone between 30 and 45 years of age. These demographics of people have had the biggest increase in resignation rates.
The number of resignations is alarming, growing to an astounding 20% in the United States between 2020 and a2021. An increase of this caliber is monumental, and the industries that encountered the highest resignations were the tech and healthcare industries.
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How to Respond to the Great Resignation?
Amid the great resignation how do you respond to the great resignation as a business owner? What can you do to retain the talent in your company, and how may you adapt to and respond to what happens? Ideally, business owners need to take steps that help with customer retention as much as possible in their businesses.
If you have the right people on board, you must ensure that you provide them with all the incentives and benefits, so they do not consider resigning. Replacing an employee is a drastic task for a company. The hiring and onboarding process is thorough and challenging, but it also creates a big loss in productivity for months as new people are onboarded into new roles. Therefore, it can be challenging and backward for a business to have key talent disappear.
Identify the Problem
The first step in retaining your members is to have a data-based approach and identify the scope of the problem. Please find out your business's retention rate and compare it with the industry retention rate. By doing so, you can benchmark your retention rate against others in your industry. The retention rate for your business requires you to take the number of people who have left your business for the year and then divide that by the total number of employees.
This will provide a rough estimate of your total number of employees and your turnover rate. It will help if you compare your turnover rate to where it is now against where it was over the last twelve months. It may be interesting for you to find out whether there has been a change in the turnover rate. It is also important to check your industry benchmarks and compare them to your turnover rate.
Typically, a company that can attract and retain talent will perform better. Therefore, you need to be in the game of attracting and retaining workers so that they can flourish. Once you understand the retention ratio and its direction, you can begin by looking at some of the root causes of retention and whether it applies to your business. You can then begin assuming possible causes of why employees may think about leaving your business.
Exit interviews are great tools that can provide data on why an individual chose to move to another location. You also have a post-survey, in which you can ask questions about whether the people feel appreciated in their work and if some improvements can improve their working environment.
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Develop a Retention Program
Developing a tailored retention program is another way to avoid the next wave of resignation. Creating a customized program for existing employees and, more importantly, for unsatisfied workers can be critical for retaining talent. These retention programs can take shape in engagement programs, burnout programs, or other types of incentives and events.
Ensure that you have created a system of great exchange for the business, which means that you create an environment in which everyone feels like they are winning. Team members must feel like the company is treating them fairly, resulting in better employee retention and increased productivity from the team members.
Factors that Affect Employee Experience
Some factors in a workplace increase the likely hood of retention of workers. The first includes transparency between the managers and the workers. Workers need to feel that they can trust their colleagues and decision-makers.
Companies must prioritize clear communication between team members and employers to increase transparency. Good communication also leads to frictionless and collaborative work environments.
You need to ensure that your workers have great tools to work with and provide an office design that encourages collaborative work. You want to avoid old-school, top-down reporting, and management in which people do not feel like they are a part of the business.
Creating a good company culture can be essential to avoid great resignation. Creating a good company culture requires you to produce a sense of belonging within a team. Moreover, you also have to align business tasks with the employee's personal goals so they truly feel they are contributing in a meaningful way. A good company culture encourages people to attach personally to the company's goals.
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Care for Your Employees
Listening and engaging with your employees is essential for company leaders if they want to avoid resignation. Recognition from both management and the peers creates a good environment for the workers, making quitting a very tough decision for the employee. Another way companies can care for their employee is by providing career development opportunities.
One of the key reasons employees opt to resign is that they do not find the opportunity to develop their careers. Whether through promotions, or career progression within the company, developing career development opportunities is a highly effective way to retain employees.
After the pandemic, employees are now more aware of the larger causes. The pandemic has brought many trailing issues to life, whether climate change or racial or class disparity. Therefore, they are less likely to stay with a business that does not act responsibly when carrying out its operations. Ensure that you are giving back to the communities that you are participating with and be in good exchange with the environment, culture, and society.
You also have to ensure that you are in good exchange with the environment and take initiatives to help with culture and society. Your employees will closely notice how you treat the people and organizations you work with. They will also appreciate all the positive initiatives that you put in place.
Considering your average workweek hours and overtime your team members are performing, you need to understand that this impacts the employees and their families. It is critical to think about the holistic picture of how your business treats people, whether they fall inside the loop of your business or outside the loop.
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The quitting started by the great resignation is likely to continue, but it is not expected to spike as high as it first started. Offices are becoming hybrid work environments, and remote jobs are becoming more competitive. The great resignation has been largely responsible for these changes, allowing businesses to hire talented labor from different parts of the world.
By: Brandi Marcene