This year, according to Gartner, employee turnover is expected to be 50% to 75% higher than companies have previously experienced. The problem is made worse by the fact that it takes 18% more to fill roles than it did before the pandemic.
Meanwhile, according to a study by the Corporation for Human Resources Management (SHRM), the average cost of replacing an employee is 50-60% of their yearly salary. How can we deal with that, managers? Are you sure you can manage the massive waves of employee attrition?
What is Employee Attrition?
Employee attrition is the rate at which employees voluntarily or unintentionally leave a business within a specified period. According to Mckinsey, employee attrition meaning is when a company finds that people keep resigning, switching industries, and leaving the job market altogether.
There are a number of factors that contribute to employee attrition, including:
Lack of career development opportunities
Employees want to see opportunities for growth and advancement within a company. They may be more likely to look for a job elsewhere if they feel trapped in their current position and need a chance to advance or develop.
Low satisfaction in the workplace
Many factors, such as a lack of work-life balance, inadequate compensation, or toxic work culture, can contribute to this situation. Employees dissatisfied with their job duties or work environment may seek other job opportunities.
Employees often leave the company due to issues with their management. Poor communication, lack of support or ineffective leadership can cause employees to feel under-appreciated or dissatisfied.
Better job prospects
Sometimes people leave a business just because they’ve found a better opportunity elsewhere. That can happen if another business offers better pay, benefits, or work-life balance.
How We Can Overcome the Challenges of Employee Attrition
Employee attrition can be costly for businesses in terms of time and money spent searching for and training replacements and loss of productivity. In reducing attrition, we need to consider the needs and concerns of our people and take steps to address them.
Here are a few practical steps businesses can take to give more attention to what people really need and slow down attrition:
1. Sweeten communication
Open and transparent communication can foster trust between our people and us. Regularly providing feedback, responding to concerns, and involving people in decision-making processes can all help improve communication.
2. Conduct regular surveys
On-going surveys can help businesses understand the needs and concerns of our employees. Surveys may focus on work-life balance, pay, professional development and workplace culture.
3. Listen and act on input from people
Regularly seeking and responding to employee feedback can help demonstrate that their views are valued and that the company is committed to their well-being and success.
4. Build a positive work environment
A positive workplace can help people feel engaged and satisfied. We can do this by fostering work-life balance, recognizing and rewarding employee achievements, and fostering a culture of collaboration and respect.
5. Offer competitive salaries and benefits
One of the major reasons employees leave a company is insufficient salaries and benefits. Offering competitive salaries, bonuses and benefits such as health insurance, retirement plans, and paid leave can help attract and retain the best talent.
6. Offer opportunities for career advancement
Employees are more likely to remain in an organization if they see opportunities for career development and personal growth. Offering training and development programs, mentorship and coaching, and career paths can help employees develop new skills and knowledge and progress in their careers.
7. Deliver meaningful work
Employees are most likely engaged and engaged in their work if they think it is meaningful to their values and interests. Providing employees with opportunities to work on exciting and rewarding projects and involving them in decision-making processes can help them increase their sense of ownership and motivation.
8. Promote work-life balance
Many employees appreciate flexible work arrangements, such as working from home, flexible schedules or job sharing. Offering these choices can help improve employee satisfaction and reduce stress and burnout.
By focusing on the true needs of people, organizations can enhance employee satisfaction and commitment. It may, in turn, result in a more stable and productive workforce that can reduce employee attrition.