As companies return to some sort of in office – remote office balance, many employees are deciding not to return to their current place of employment, or after returning will give notice during the next few months. And, of course, we as company leaders with the accountability of profit need to know, more than just want to know. In any case, the need to measure the employee experience, honestly and confidentially, is more critical now, more than ever. And likely will be for quite some time.
Consider:
The Work Institute 2020 Retention Report lists the reasons most often given for employees resigning [1]:
The top 4 percentages will likely apply to your company and your employees:
• = Mobius interpretation
1. Lack of career development programs. (20%)
• Good employees (the one’s you want to keep) are looking for opportunities to grow, expand their knowledge and skills, and to be given advancement opportunities. If they don’t see these opportunities within the company — they leave.
• What can a company do to prevent this?
• Put together training programs that address the needs of the corporation and the employees. Let employees know what it takes to get promoted and work with them to achieve their potential.
2. Lack of a good Work-Life balance. (12%)
• The pandemic has brought this to light in many ways; of these, 25 percent, can’t wait to get back into the office. By some estimates 80 percent want some type of in office – remote work combination. A word of caution here: A research paper from the University of Chicago [2] says remote-working-means-longer-hours-not-higher-efficiency.
ü It cited in Time Magazine (June 7, 2021, pg. 58) that remote workers upped their hours by 30% yet didn’t increase productivity[3]. So, these workers are giving the company an extra 12 hours (30% of a 40-hour week) yet they’re not more productive. A lose -lose for the employee and the company.
• What can a company do to offer a Work-Life balance experience?
• Management needs to look at what’s best for the corporation and have an open mind with regards to the employee’s desires. Both Google and Apple have announced 3 days in the office and 2 days a week structure, allowing employees to work remotely.
3. Poor management behavior. (12%)
• This could include everything from lack of professionalism to lack of communication and support.
• What can a company do to prevent this poor behavior?
• Managers need training and to be held to measurable standards, like all employees. Some areas of training include harassment training, employee rights and company policies, to name a few. A once a year (or more when needed) 360-degree evaluation will prove very helpful in identifying areas that need to be addressed or complements the managers strengths.
4. Compensation and benefits. (10%)
• Your compensation and benefits package needs to be competitive with others in your industry. Not necessarily better but at the very least competitive.
• What can a company do?
• To address your compensation, benefits package is easy these days. With all that’s available online, finding competitive information is not hard. Indeed, Google, Glassdoor, are just a few areas you can find what you need to make sure you are competitive.
Add them up and you will find the 4 “reasons” stated above account for over 50% of employee resignations. By addressing the above-mentioned issues, a company can prevent what Anthony Klotz Texas A&M referred to as “the great resignation.”
You will need help. Consider reaching out to a professional firm that specializes in the type of research that can help your company retain its employees. Mobius’ Employee Experience – EX Consulting Employee Experience - Mobius Vendor Partners (mobiusvp.com) - supports your goal to ensure an effective employee experience strategy. Using our world class EX feedback management system, CustomerCount® --from assessing through measurement of current staff sentiment to managing recommended improvements, Mobius will help you motivate your team to higher productivity, greater retention, and engagement.
Add the number of W-4 forms you mailed last year; subtract the number of existing employees; multiply that times X and you will see the cost of turnover.
The cost of employee turnover can be devastating to some companies so the need to keep your employees must be addressed.
Good luck with your challenge and, of course, let us know when we can assist.
· [1]https://info.workinstitute.com/hubfs/2020%20Retention%20Report/Work%20Institutes%202020%20Retention%20Report.pdf (Employee Retention Report - Work Institute) [2] https://www.essex.ac.uk/news/2021/06/16/ [3] Why Working From Home Will Stick | BFI (uchicago.edu)