Nearly 50 million Americans quit their jobs in 2021, sparking the movement known as the “Great Resignation.” Preparing for the future of talent means embracing remote work models, providing opportunities to create meaningful work, creating growth pathways, and listening to talent.
While it’s more appropriate to call the Great Resignation the Great Reshuffle, in which those who quit their jobs move on to other companies or set up their own businesses, it hasn’t lost momentum yet. In the United States alone, resignations averaged just over 4 million per month in 2022. A Fortune article on the Persistent Great Resignation cited independent surveys by Microsoft and McKinsey & Company that each found that about 40% of workers were considering quitting their jobs by the end of 2022.
Replacing skilled workers often comes with high costs. The departure of proven talent disrupts workflow, strips the company of some of its wealth of knowledge, and can erode organizational culture. The company must then devote time and financial resources to recruit, hire, and onboard new workers.
In response to the labour market disruptions caused by the pandemic and the Great Resignation, Procom created the Redesigned Recruitment Guide, a guide for finding, selecting, hiring and retaining talent. With a steady wave of resignations and a labour shortage, it’s perhaps more important than ever for companies to formulate a retention strategy.
Resignations are due to a harmful culture
According to an analysis conducted by MIT’s Sloan School of Management, most employees who have left their jobs since the start of the Great Resignation have done so for reasons related to workplace culture. These factors include the employer’s failure to promote diversity, equity and inclusion efforts, disrespectful treatment of workers by management, and unpredictable workloads and schedules.
According to Procom’s latest Voice of Talent report, about 52% of workers are “very likely” or “likely” to leave their current jobs in the next 12 months, often for culture-related reasons. Yet, the same report reveals that most workers are optimistic about their careers.
Talented workers know they have options in today’s job market and aren’t afraid to change employers or even industries in an effort to find a position that is better suited to their career values and priorities. A harmful workplace culture can accelerate resignations, while talent satisfaction promotes retention.
Companies must adapt to changing priorities and expectations of workers to retain their best talent. Here are some steps that can help companies prepare for the future of their workforce.
Rewarding work
According to a report on the state of contract resources, published by Flextrak in 2022, cultural factors, such as rewarding work, began to weigh heavily on contract workers’ decision to accept an assignment or end it early.
In fact, the report reveals that among the most important factors considered by contract workers in the decision to accept or refuse an assignment, meaningful work tops the list. Indeed, sixty-six percent of workers said this factor was very or extremely important to them.
Find out what “meaningful work” means to your company, and then offer talent the opportunity to create that work.
Adopting flexible work arrangements
Work arrangements preferences have changed dramatically since the start of the pandemic. Employers who are able to make their arrangements more flexible would do well to consider remote work options. According to Procom’s redesigned Recruiting Guide, 65% of talent wants to work 100% remotely.
Although talent sees remote work as a positive criterion, it is important for companies to distinguish between remote and mobile work. The Voice of Talent report suggests that more than a third of workers believe that remote work means being able to work anywhere in the world, but a true remote work regime requires special considerations.
Depending on where employees live and work, a nomadic work model can come with additional tax issues and regulatory compliance needs. However, remote and nomadic work arrangements can be effective for talent and employers when workers reside close to the company’s offices.
Providing opportunities for growth
Due in part to the socio-economic impact of the pandemic, today’s workers are forward-looking and eager to hone their professional skills.
According to a report by the Harvard Business Review, nearly 70% of the world’s workforce wants to see their employer offer them opportunities to retrain or learn new skills. Companies that do not yet offer professional development opportunities may consider upskilling or reskilling programs, tuition or certification reimbursement, mentorship programs, or other training options.
As the Harvard Business Review article points out, workers generally want to stay with employers that promote a positive culture and offer opportunities for advancement. Internal promotion rewards and retains dedicated workers who have significant in-house knowledge, demonstrating to employees that the company is committed to individual growth.
Growth opportunities not only retain the most important talent within the company, but also recruit new ones. Companies that offer upskilling opportunities and promote opportunities for employees internally would do well to present these factors as part of their brand and culture.
Solicit and Accept Feedback
Understanding how they feel about their individual role and workplace culture is key to retaining talent.
Conduct regular anonymous and voluntary surveys to gauge employee satisfaction and gain critical insights for employee retention. Different employee satisfaction and workplace culture survey templates can be tailored to a company’s products or services as well as its work model.
Surveys should be short and concise and provide employees with an opportunity to express themselves on relevant issues, such as workflow, organizational culture, work-life balance, management relations, workload, and productivity expectations. The idea is to gather actionable answers that can help companies improve culture and retention.
Companies should not just collect this feedback. They should also make efforts to address important comments. Employees want to be involved and feel like they’re being listened to. Companies that heed their employees’ feedback lay the foundation for employee loyalty and retention, ensuring the sustainability of their workforce.
