Updated: Aug 18
The United States Bureau of Labor Statistics estimates that about four million people left their jobs in July 2021, while about 10.9 million job openings were reported for the same period. The United Kingdom economy has been hit by a labor shortage this year. Managers in the IT sector have reported that staff turnover is at an all-time high.
Amazon's Attrition Problem
When Amazon Senior Program Manager Sarah Schenirer decided to leave the company in January, she sent a heartbreaking goodbye letter to the "Manzonians," an internal group for working mothers that she founded. Employees on nursing or health care leave cannot receive raises or stock ownership during that time, and Schenirer expressed her displeasure in an email. As Business Insider reports, a few days after sending the message, Amazon changed its policies and reinstated vesting during family leave and up to 26 weeks of personal leave.
It's no surprise that Amazon's new CEO, Andy Jassy, is more receptive to the issues facing departing employees. According to media reports, the company's employee turnover has reached crisis levels, with fifty vice presidents leaving the company in the past year - a record number. The trends have the same impact as in any other company, and what we are seeing is related to what is happening across the industry. There is little reason to believe that Amazon's prominent resignation will now become a "big exodus." According to one recently departed Web search manager, half of the 12 interns in his cohort left the company in the past year. According to a former senior industrial engineer at AWS who left the company last year, attrition in the cloud department will rise to more than 20 percent by 2021 and to more than 50 percent in some large AWS units.
Mass Exodus of 2021
But even though many are delaying a career change until 2020, the current year shows that workers are eager to move on to something new. Workers need more than just a steady paycheck from their employer, whether they are just looking for a remote office location or relocating altogether. If certain expectations are not met, some workers may be willing to quit their jobs, leading to a "mass exodus" in 2021 and beyond. High employee turnover can negatively impact a company's productivity and morale if not effectively addressed. Management must identify the root causes of employee dissatisfaction and take swift remedial action to maintain a positive work environment.
Employee expectations to reduce turnover.
Employee turnover is a sign that you, as a business owner, should re-evaluate your company. Before you develop a strategy to retain your employees, you need to know why they leave. Lack of flexibility, support, development, appreciation, vision and commitment could be reasons. According to Forbes, high employee turnover may indicate that something needs to change in the organization. Some of these reasons may require a fundamental change in the company's culture, while others may require direct management intervention.
Having a regular, open conversation with employees is critical. Managers can start by asking simple, everyday questions more frequently, such as "How are things going in your life?" "How is work going for you?" or "How can I help you?". Leaders need to listen to what motivates their employees, what obstacles they face in their day-to-day work, and what inspires them, especially if their experiences differ significantly from ours.
2- Advancement opportunities
Offer your employees opportunities for advancement, whether through a promotion or the chance to acquire new skills. Special initiatives and groups are also a great way to retain employees.
3- Flexible working hours
Since the onset of the epidemic, many people have realized that they can work flexible hours and still be productive. According to Forbes, over 70% of American workers would prefer a job with flexible hours to a higher salary. The number of hours worked is not the only indication of flexibility. When you start work, the number of PTO days, or even the company's daily rules, such as dress code, can also play a role.
In today's competitive marketplace, remote work and flexibility are critical to attracting and retaining top talent. On the other hand, managers must be aware that workers may view flexibility differently and opt for additional incentives, such as employee assistance programs and wellness workshop entitlements. Paying employees more is a short-term solution. Attracting and retaining top talent requires fostering a culture focused on work-life balance.
4- Involve in decision making
Even if you are an expert in the field of business management, you should always consult your employees before making important decisions. Without the involvement of employees, the workplace becomes a dictatorship where they are afraid to express new ideas or opinions. In such a case, employees may decide to move to a company where they can have more influence. There is a fine line between authoritarian management and deferring all decisions involving key parties. To keep your employees happy and productive, you need to recognize their dissatisfaction and respond quickly to offer solutions.
5- Corporate ethos and defined values
To describe corporate culture, you need to look at the common attitudes and ideas that permeate a company and influence the way people think about their work. To the extent that people love their jobs, company culture is critical. A large portion of the workforce believes that company culture is critical. You can not improve or change the company culture until you know what kind of culture it needs. In this area, you can get help from various resources and companies in creating, competing, collaborating, and controlling according to research. The most important thing for new hires and existing employees is to be honest and transparent about the organization's culture.
6- Health Insurance
A survey conducted by Glassdoor found that this incentive is the most important. Companies often have to pay extra for health insurance, but it's worth it to ensure the health and productivity of their employees, not just to motivate them. Good health insurance boosts morale and shows that the company cares about the health and well-being of its employees.
7- Recognize employees
To reduce turnover, this is a simple method to use. Appreciating employees and recognizing their hard work has consistently proven to be very influential. Employees are happy to receive "thank yous" and "acknowledgments," whether verbal or written. When done authentically, supervisors have a disproportionate impact on employee engagement and productivity. Research shows that employees who receive positive feedback from their boss are more likely to be engaged and few actively look for a new job.
It's also important to seek the opinions of colleagues. A whopping 75% of employees believe that recognition increases their desire to stay with their current employer. With the help of modern technology, it's easy to see why these types of initiatives are so effective in encouraging others to recognize each other.
8- Provide high salaries and additional incentives
Offer total compensation packages that can compete with market levels. It would be helpful to offer a satisfactory salary and additional incentives for taking a job and showing up every day. Low pay is one of the most common reasons people leave their jobs. Not surprisingly, workers are most likely to stay if they receive a higher salary, followed by paid vacation days and other incentives.
Starting salaries should be competitive enough to attract the best and brightest applicants. It would be best to consider frequent salary increases, especially for hard-to-fill positions. Most companies pay more for employees with in-demand talent, and many offer incentives based on project success.
9- Invest in your hiring efforts
When a company hires poor employees, part of the responsibility lies in the hiring process. The hiring process needs to start with the goal of finding the ideal candidate. You should communicate expectations, incentives and company culture to potential employees from the start, not just what they want to hear. According to a Jobvite survey, nearly one-third of employees quit within the first 90 days because they did not get what they expected.
According to Bloomberg, the success rate of hiring new employees in many companies could be increased if candidates were selected from among peers who already hold the job. Read this article on the benefits of internal promotion. In addition, companies should devote time and resources to their recruitment efforts to increase their success rate in finding suitable candidates.