The state of the workforce is a major topic of conversation — this is particularly true since COVID, when millions lost their jobs, and millions were left with heavy workloads and uncertainty regarding their future career. As we all know, this spurred a massive employee exit in 2021, when 48 million employees ultimately left their jobs. In turn, thousands of businesses suffered during what became known as the Great Resignation, when they watched skilled workers leave and they struggled to hire new talent.
Today, more than 50% of today’s workforce is either currently looking or are regularly watching job postings, and about a third would quit their current jobs without having another one. Another interesting and troubling trend: employee engagement among all workers has dipped, from 36% in 2020 to 32% today — a level we haven’t seen in nearly a decade.
As concerning as these statistics may be, an upside exists for great recruiters at great companies who are looking to attract great talent. It is possible to attract and retain potential new hires and, most importantly, keep your current highly skilled employees from leaving. As 75% of turnover is preventable, employers who focus on employee’s most important needs – those that keep them engaged and happy – have the greatest opportunity to succeed during the Great Resignation and attract new talent.
The real reasons employees leave
All too often, employers’ use hunches and assumptions, rather than hard data, to explain why their team is dwindling. Then they apply the wrong solutions to solve this problem, which is a great disconnect on their part. A recent McKinsey study revealed that most employers assumed the top reasons their employees leave were compensation, work-life balance, and overall mental and physical health. While these factors are certainly important, they are not the top reasons employees leave.
Employees say they are unengaged and looking for new workplaces due to feeling underappreciated, undervalued, having poor relationships with their manager, and because they lack career and growth opportunities. As a result, they don’t feel a sense of belonging and cannot see a long-term future with their current employer.
A great example of employees feeling undervalued is the prevalence of burnout – another buzz word in today’s workforce conversations. Labor shortages have often resulted in long-term job vacancies, requiring many employees to continuously take on additional work, shifts, hours, or tasks – without seeing an end in sight. As a result, individual growth- and career-development planning opportunities move to the back burner in order to meet daily work requirements. Lack of verbal appreciation for these sometimes-extraordinary efforts can accelerate feelings of undervalue and create the perfect storm for disengagement. Employers sometimes throw money at this problem (see assumptions above), but that doesn’t solve their need for time, value, or growth.
Let’s talk remote work
The current remote working trend can also have a significant impact on engagement and retention. While remote-capable workers enjoy the flexibility, working remotely reduces manager and team interactions, providing less opportunities to feel connected and valued. In addition, the spontaneous idea sharing and coaching that naturally happens working onsite is greatly lessened – reducing learning opportunities and growth. While remote work is likely here to stay for many, the most engaged remote-capable employees are those who work a hybrid schedule of two to three days remote and two to three days onsite, providing both flexibility and onsite collaborative opportunities.
Leaders can positively impact team engagement and retention by focusing on the most important needs of their workforce. One of the most impactful ways: increased interaction among managers and their team members. Managers should connect individually with each team member and gather the team as frequently as possible. A few ideas for these interactions:
- Connect daily. A quick “how are things going today?” can go a long way.
- Offer positive feedback. At the very least, this should be provided weekly.
- Think beyond daily work. Require managers to create and support development plans including career development options for each employee – and also for themselves.
- Provide clarity. Ensure goals, expectations, and priorities are clear – don’t assume everyone knows – and review them daily or weekly. Gallup reports that only half of all workers strongly indicate they know what is expected of them at work.
Recognizing manager needs
Businesses that have been successful in engaging and retaining talent over the last two years have focused on the needs of their managers. Managers account for 70% of an employee’s engagement, which is more than any other factor according to Gallup; managers influence most of the levels of engagement.
Managing in this new environment is challenging for most, especially new managers. Employers should focus on providing training, as well as offering tools and guidance for how to navigate this environment and engage their team. Managers need leaders’ support, mentoring, and recognition, too, now more than ever. Get managers together in-person or virtually regularly to create a supportive learning and best-practice sharing community.
The power of data
Highly engaged businesses also use data to identify and solve engagement challenges – they don’t rely on hunches or assumptions. They collect and review employee engagement survey data and compare to company metrics to reveal a clear picture of engagement in their business. This includes high and low areas, best practices, and risk areas, and provides an opportunity to home in on solutions that will make a quick and impactful difference.
This is where a professional business advisory firm like Rehmann can help; a third-party vendor can partner with an organization to plan, gather, and analyze data. This process also allows for preserving employee privacy, contributing to a greater likelihood for honest feedback.
Third parties can also provide world-class resources, tools, and knowledge. Their internal teams work with many other organizations that can deliver recommendations, viewpoints, benchmarks, and best practices. They can often offer comprehensive solutions ranging from manager training, leadership development, recruitment and onboarding support, and a full assessment of HR practices.
Engaging the disengaged simply makes sense. Remember, it costs two to three times an employee’s salary to replace them – it is most cost effective to listen to employees and take actions to engage the disengaged.
The key to winning against the Great Resignation is to create a work environment where employees want to work. With the right focus, you can have an engaged workforce and a happy, talented team.
Cheryl Kuch is a senior consultant with Rehmann HR Solutions. Learn more about the ways Cheryl and her team help organizations with HR solutions here. You can also contact Cheryl at [email protected]
Orginally written for Grand Rapids Businss Journal
