Businesses now more than ever work to keep high retention rates
As the Great Resignation is still occurring all across the UK and the rest of the world, companies are looking for ways to boost pay and benefits since recruiting challenges have occurred. One-fifth of businesses alone are stating this is one of the biggest challenges that they have to face. On top of this, the UK, and the rest of the world are having to deal with rising energy costs, and inflation, and there is an all-around living crisis that both businesses, employees, and job-hunters are all dealing with. This is considered one of the greatest threats as 65% of businesses will be facing major issues foreseen within the next six months, according to accountancy firm BD.
While all of this is occurring, companies now more than ever are looking into ways to keep high retention rates. As employees are expecting more pay, fewer hours, and a less toxic-work culture, companies are obliged to do so. It’s only natural that if employees are happy and feel fulfilled, they’re going to be far less inclined to quit their job. There are many ways that UK and other global business leaders are working towards keeping employees happy and high retention rates.
Prioritising work-life balance has become on of the biggest ways to allow employees to know that they can be happy in the work that they do. The executive director at American Psychological Association stated, “To engage the workforce and remain competitive, it’s no longer sufficient to focus solely on benefits. Top employers create an environment where employees feel connected to the organization and have a positive work experience that’s part of a rich, fulfilling life.” As COVID-19 and remote work has created blurred lines between work and personal life, and the fact that there is now the expectation of always being reachable by phone, the expectations of work-life balance has been skewed.
More employees expect to have a say in their work, rather than just taking orders. Employees want to be a part of the bigger picture of the company and let their voices be heard. The CEO of Insightly, Anthony Smith has stated that this is the best benefit business owners can offer to their companies. “Your employees is the opportunity to make a difference through their work and help guide the course of the company. Benefits such as clear and frequent communication on company happenings, individual and department direction, and big-picture company direction make all the difference in employee happiness.”
As more people from the UK and all across Europe have been wanting to travel after the last two years of not being able to travel due to COVID, massive spikes of tourist are traveling all across the world. This has no only disrupted the travel industry, but this has also made an impact on a lot of employees. Vacation days are incremental, and it’s a legal right, including the UK. However, for some countries such as the United States, vacation days are considered a privilege, which is not mandatory. The founder and CEO of the American company ItBandz, Stacia Pache, has comment on the lack of vacation days given in American corporate culture. “Reward your highest performers with incremental vacation days. These employees are your superstars, so you can be confident they will get their work done as well as enjoy a few extra days of well-deserved time off with family and friends.” This has led to the mantra of “work to live not live to work”, and this alone has made many employees storm off to find companies which will offer vacation days.
More companies and business owners are inclined to believe that honesty is a one way street. It’s something that is expected out of the employees, but the employer shouldn’t need to disclose transparency or be honest. This alone has been a contributing factor to the Great Resignation and why no many employees have quit their jobs. ParkMobile’s HR director in the US division, Laura Grieco states commented on this and has stated: “Feedback and the ability to understand employee concerns is important, but it’s what you do after that’s critical to retention. You should always be transparent by sharing what you’ve learned and a course of action for addressing the issue. For example, after a recent companywide engagement survey, we chose to share our results with all employees. We not only communicated our top areas of success but also our areas for improvement and how we planned to address them moving forward. Transparent communication and a simple acknowledgment that we heard you can go a long way.”
Business professor at the University of Iowa, in the United States, Maria Kraimer has remarked that a lot of companies will not assist in getting their employees to move up within their career path. Instead, leaving them to not keep up in the industry or provide the right tools and training to soar. This has been a common theme which has been growing. She remarks; “We found that providing developmental support such as training opportunities and career mentoring, to employees who do not believe there are attractive career opportunities for them within the company led to such employees leaving the organization. It’s critical for businesses to have regular career planning discussions with their employees. As part of training and development, make sure employees are aware of the different types of career paths or job opportunities throughout the company.”
“In my experience, employees rarely become unhappy or leave solely over money. When they do become disenchanted, it is usually because they don’t like their boss, aren’t engaged or feel like they have stopped learning. Having a positive culture and workplace environment helps a lot, as it encourages teamwork and communication, which increases engagement and opportunities for teammates to learn from each other. We also do periodic shoutouts to people at all levels of the organization for great work or superior effort. These kudos cost nothing but provide important public recognition for a job well done, effectively compensating people in the form of social currency, which is highly valued.” A comment from CEO of Roofstock, and his opinion on the lack of appreciation that companies are now giving to their employees.
Toxic work environments have always existed, but employees and talent are now becoming weary. Websites such as Glassdoor help give an idea on what the company culture may look like. The same can be said about interviews. This alone has allowed talent to say “next” and look for a company culture that appears to be more inviting.
President of Bumkind, Jakki Liberman, commented on this topic with “Happy employees make for a happy company. Within the office, we’ll publicly acknowledge accomplishments, provide a group lunch, reserve a prime parking space or change a title. We’ll also help employees to grow and develop, whether by taking on new desired responsibilities or challenges, taking courses to learn new skills, or furthering knowledge of the company by traveling on company business trips.”
HoneyCo CEO, Zach Watson has noticed that his colleagues within the industry do not believe in employee build up for giving values. However, the lack of appreciation and the lack of support is what causes employees to jump ship. He stated, “If you’re looking to keep an employee by giving him/her a raise, it’s already too late. Find people who share the operational values of your organization from the outset, test for fit early, and allow growth opportunities to express that value. We’re fanatics about the initiative and constructive impact. Our team members are consistently rewarded with higher-value projects following a constructive initiative.” This has been a common theme as to why so many employees are resigning from their job.
It’s very important that companies will work towards making the work that employees do more easy. Whether this be data world garage shelving solutions or software that speeds up the process. But overall, another reason employees are leaving is due to the lack of communication, this alone makes work significantly more difficult. Tom Heisroth, Senior Vice President at Staple Advantage commented on this topic with “Businesses should take steps to create spaces where employees can easily communicate and share ideas. Casual conversations in the break room can become collaborative conversations. Make it inviting and effective, with nice furniture, tables, and snacks and beverages, if possible.
Overall, it’s going to be up to the companies and whether or not they decide to change to help their employees and to keep high retention rates. Small businesses all over the west have been dealing with this, but it’s their decision to make this stop.