Call it the “Great Resignation” or the “Big Quit”, 2021 was the year that millions of Americans walked away from their jobs. In the second half of 2021 alone, more than 20 million people handed in their notice, leaving businesses and employers scrambling to retain and hire talent.
What’s behind the Great Resignation? For many employees, the pandemic offered an opportunity to reevaluate their work environment in the context of their well-being and desire for opportunities that better align with their career and life goals.
This may explain why firms were left with millions of vacancies. Still, it also shines a light on a potential remedy — that companies can reduce employee attrition and attract new talent by making their workplace a more attractive place to be.
Let’s look at six ways your business can attract and retain employees to help combat the Great Resignation.
1. Raise wages
Companies are testing several incentives to hire and retain talent and one of the most effective ways to do this is to raise wages. Rather than eroding your bottom line, offering a compelling salary package can pay dividends. If you can lure top employees into the workplace, you can expect them to have a significant and positive impact on the future of your business.
2. Provide flexible work arrangements
The desire to work from home has shifted considerably since the onset of the pandemic. According to the Pew Research Center, 61% of workers say they choose not to go to their workplace, while 38% say they work from home because their workplace remains closed. And, when the pandemic is over, 60% of workers state a preference to continue working from home.
Given these data points, employers who are unable to offer a work-from-home option may pay the price. Early this year, companies including Facebook, PayPal, and Amazon filed shareholder reports stating that rejecting remote work would cost them in the competition for talent.
New hires and current teams cite time and schedule freedom as their most desired workplace attribute. Offering this benefit can be a key differentiator for your business. It also goes a long way to increasing employee morale.
3. Invest in professional development
The prospect of upward mobility is a big factor in retention. A Harvard Business School survey found that 62% of workers concur that professional development — including skills training and credentialing — matters.
But don’t limit training to the classroom or online courses. Invest in mentoring and career pathways that give workers a clear sense of what’s needed to progress their careers. Set clear milestones and establish resources and support that can help them get where they want to go.
Hands-on professional development — where you expose employees to new projects or stretch them beyond their job description — can also help. But beware of job scope creep and simply adding to their workloads.
4. Cultivate a sense of purpose
People want to feel they are part of your business success, that they have a valuable contribution to make, and that their ideas are heard and tested. Look for ways to provide meaning to your employee’s work so that they can continue to grow, contribute, and share their passion with others.
5. Don’t skimp on respect and attention
Underappreciated employees are often first in line when seeking new career opportunities. Combat these feelings by showing your appreciation for your employees. Get to know them as individuals, understand what motivates them, acknowledge their achievements, and give them latitude to explore new opportunities. It’s also important to listen to their frustrations, find out what you can do differently, and use this feedback to create a better workplace. Above all, trust that they know their jobs, perhaps better than you do, and don’t feel bad asking for their help.
6. Prioritize culture and connection
Having a good relationship with your employees is crucial. Forming social connections can have a significant impact on collaborative teams, productivity, and positive outcomes. Take time to connect with your employees and create a space where they can also build relationships with each other.
Conclusion
There is no silver bullet to attracting and retaining the right talent. Factors can vary by industry, the pace and velocity of your business, available resources, and more. But it’s critical that you are aware that workers want more from their employers and the workplace, and they have the upper hand right now. It’s up to you to understand what their motivations are and how your organization can meet those expectations.
