Businesses worldwide have set a new record for ‘quit’ rates, and there is no evidence that the culture of quitting is going away anytime soon. A recent analysis conducted by Gartner found that the annual turnover rate is projected to rise by 20% in comparison to the levels it had reached before the pandemic. To put this in context, if a company loses one-fifth of its workforce in a year, it will now lose a quarter. This frightening number has the potential to inhibit a company’s capacity to continue its regular operations while also experiencing growth.
What Causes Employees To Leave?
COVID-19 pandemic gave individuals the ability to identify what they wanted to accomplish for a living and which company they wanted to work with. As it turned out, for many people, their current employment was not what they desired. As a result, there was a jump in the number of people quitting their jobs across various industries, which left behind many job opportunities.
There are so many jobs available that job searchers now have the opportunity to shop around for possibilities that pay more, give more flexibility, and have a better work environment. To attract top talent, IT Recruitment Outsourcing offers high pay and enticing benefits that tempt workers away from their current positions.
It is critical to keep your staff happy because they are likely to be offered lucrative positions by your competitors. When looking for a new job, work flexibility is a major consideration. It’s much more likely that companies who don’t offer flexible or completely remote work choices will miss out on top talent. Over half of existing employees say that flexible work rules are a deciding factor in whether or not they will stay with their employers.
Also, employee burnout is at an all-time high. The lack of available talent has resulted in employees being overworked, underpaid, and disengaged, contributing to the culture of quitting that many businesses are experiencing.
Reasons Companies Are Witnessing Hike In Number Of Resignations
Increasing numbers of workers are resigning from their existing positions in pursuit of new opportunities and better pay. Amazon India conducted a poll in September 2021 that found that more than half of job candidates were looking for positions in businesses or areas where they had no prior expertise.
There is a strong desire among workers for greater freedom and flexibility. The jobs that allow for more flexible working arrangements, such as working from home or at non-standard hours, are the ones that have the fewest openings and the least amount of people quitting their positions. Flexible work schedules are best accommodated in traditional office jobs, including banking, information, legal, consulting, technology, and public administration. Working from home or having a flexible schedule are important considerations for many parents, but this is especially true for mothers.
Companies that fail to differentiate between top performers and slackers when it comes to recognizing and rewarding employees are more likely to lose their best workers. Companies that don’t recognize and reward their best employees have greater departure rates, and the same is true for employers who tolerate underperformance.” It’s not about getting paid but more about being recognized. A lack of or unjustified presentation causes animosity, which leads to resignation.
Negative Work Culture
By far the best predictor of industry-adjusted attrition is a toxic corporate culture, which is ten times more important in predicting turnover than compensation. According to our findings, the most important factors contributing to toxic cultures include a lack of efforts to promote diversity, equity, and inclusion, as well as a climate of contempt among employees and a culture of unethical conduct. Please stay tuned for more information on each of these variables and how managers and employees might identify signs of toxic workplace culture. For now, the most crucial aspect is that the Great Resignation was sparked by terrible workplace culture.
Due to the monotony and boredom of working the same hours every day, many people, especially those employed from home, are looking for new challenges. With the help of IT Recruitment Outsourcing services, People’s desire to move on to more secure employment was another factor in their resignations.
The Job Was Unsuitable
Many people who leave their employers seek new jobs because they don’t like their current ones. There have been many employee resignations and vacancies in industries with a high risk of exposure to Covid. Leisure and hospitality positions, such as those in hotels, restaurants, sports facilities, amusement parks, and museums, have the greatest rate of resignations. Other industries, such as waste management, janitorial services, health care and social assistance services, retail, and manufacturing, also have significant turnover rates. Most of these positions necessitate a physical presence at work, making them unsuitable for many job seekers.
Lack Of Growth And Stability
Most high-performing employees depart because they believe they aren’t progressing as quickly as expected. There’s little difference between people who are paid appropriately and those who are paid more than reasonably. They have to have the sense that there is something in it for them personally; otherwise, they would be tempted to look for a job elsewhere or be vulnerable to recruiters. People management is not something your most valuable employees always want to do. Unless you create a non-management career path for them, they’ll find a new employer.
It’s imperative to provide educational and career progression options for employees, even if this means they leave your firm. You never know when an employee may return or when they may provide an important referral. Employees should be informed of chances for professional development. Determine if they have the means to expand and adapt their jobs, to take on more and different duties, to spearhead new projects, and to experiment.”
How Can You Retain Your Employees?
As previously said, today’s workforce necessitates flexible working arrangements. A company must offer flexible work alternatives if a job can be done remotely in order to keep its best employees and attract new ones. People are happiest at work when they have control over when, where, and how they do it. Creating a culture of trust, empathy, and responsibility can help companies establish flexible work arrangements to retain and attract talent.
As a result, employers are also looking for an IT Recruitment Services Agency that prioritizes hiring quality employees and helps them retain the same.
Humanistic cultures, possibilities for professional development, and mental health initiatives have attracted recruits. To combat the culture of employee turnover, companies must work to improve their corporate culture and develop retention tactics. While a disengaged worker can easily be persuaded to accept a 20 percent raise in salary, a highly engaged employee is more likely to reject such an offer. Leaders should frequently collect feedback and develop practical initiatives based on employee responses to ensure that employees are happy and experiencing a great working environment.
Focusing on the applicant experience is another strategy to create a people-centric culture. In order to stand out from the crowd, you should focus on improving your application process, optimizing your technology, and cultivating genuine connections with recruiters. It is vital to a productive workplace that all employees, whether they are based in the office or not, feel appreciated and heard.
Is There A Way You Can Rehire Skilled Former Employees?
Go with your normal hiring process if you intend to bring back a previous employee. Involve coworkers in the process and have a direct discussion with the terminated employee to establish clear expectations in advance. In some cases, a former employee can be an excellent candidate for an open position. There are many who could disagree. In the end, a slew of variables specific to your business come into play. Remember to be honest with yourself and ensure that the decision you make for your business and your employees is right. The fact that someone has worked for you in the past doesn’t indicate that you may skip any of the processes in the interview process. The following are essential actions to take:
- Revisit Their Exit Interview
- Conduct a New Interview
- Check Your Rehire References
- Onboard Your Rehire
- Rehire Reporting Requirements
Organizations should not use the phrase “return to normal” as a measure of success. In a post-pandemic environment, leaders must be forward-thinking to develop strategies that match the current needs of employees and job seekers. As an IT Recruitment Services Agency, Collar Search has the expertise and resources necessary to assist your firm in identifying and overcoming its recruitment difficulties. Contact us today for a free, no-obligation consultation on talent acquisition.