The Great Resignation of 2021 is the beginning of a new era and it’s already causing some major changes in how companies are decreasing turnover and increasing retention. This article will discuss The Great Resignation and why these changes are important for your company to survive.
The Great Resignation was the name given to the mass resignation of employees within the United States in 2021. Although both the unemployment rate has continued to decrease from their highs in February/April of 2020, Americans are continuing to seek other opportunities for more flexibility, remote work, and career advancement. This article will discuss how companies are changing due to this major event of The Great Resignation and how you can implement these changes into your company for increased turn-over and decreased retention.
The first change that has been implemented due to The Great Resignation is fully understanding turnover. While it may seem like a common and “no-brainer” practice, companies in the past have been negligible in digging deep enough to determine causes for turnover and adjustments that can be made to increase retention in the future. In order to effectively prevent turnover, one must understand if they have a retention problem or if they are losing employees over other factors such as economic conditions, industry changes, and competitor advantages. Once this information is gathered, an effective retention program can be created.
Another change that has been implemented is increasing flexibility. In order to retain employees, companies are changing their work schedules and benefits in order to provide more flexibility for the millennial workforce. According to a report from the Families and Work Institute, 66% of younger generations are looking for flexible work schedules. Companies are making changes to provide more flexibility with benefits and work hours. As a result, this will increase retention because they will be more inclined to stay with their current employer rather than switching companies because of the need for flexibility.
It is also critical to ensure your company is providing career advancement opportunities. According to Oracle, career advancement is the number one factor that drives employee satisfaction and loyalty. This transition is becoming increasingly necessary as people seeks opportunities for continuous growth in their careers. Companies that do not provide this benefit will lose their most valuable employees. However, companies are changing and providing more opportunities for employees to grow within their careers.
Another option that has been implemented is providing remote work. This can be a difficult transition to make for employees, but it will be necessary for companies that must remain competitive. In order to provide remote work, companies are offering bonuses and tuition reimbursement to employees. This will help to retain employees because the work environment will be more flexible for them. This is especially beneficial for millennial generations and their desire for flexibility.
Companies have also found success with the creation of job sharing positions. This is when two jobs are combined together into a full-time gig so that the company can stay afloat while they search for a replacement. This change is important because it allows the company to keep their employees on by another method than just hiring someone new. They can easily screen out anyone who isn’t interested in staying at the company because of this position and have them trained for it until a prospective employee can take over.
To lessen the blow, companies have also implemented the creation of temporary contracts for employees on the verge of retiring. This is where a full-time employee has their contract extended until someone else can replace them or they choose to retire. This is an excellent way to keep the company afloat because it works like a job sharing position. It allows them to keep their employees on by giving them a temporary contract until they are replaced.
The last change that has been implemented due to The Great Resignation is the creation of part-time jobs to make up for the lost full-time jobs. This is especially important for companies that are experiencing high turn-over. This allows the company to offer employees more flexible hours and keeps them at a job rather than looking for another full-time position. This allows companies to keep their company running and see their profits increase since they can cover some of their expenses on a lesser salary.
These changes are able to be implemented right now in your own company. They will save your company money and help you stay afloat through this major event known as The Great Resignation. With these changes implemented, your company will have a much higher retention rate and decrease their turnover (To improve your retention strategy for new hires, view our attract and retain new hires blog). This will be very helpful in the years to come and your company will be able to continue on while others close up shop. Keep in mind, the transition to these changes are difficult for companies and often take several years for effectiveness in lowering turnover rates. However, they are necessary to remain competitive in the current climate of market changes.
The Great Resignation is an event that will affect the lives of many people, but it is not too late to get ahead of it.