For many businesses, the next chapter of the COVID-19 pandemic has focused on one thing: the “Great Resignation.” Fueled by burnout after working during such a challenging time, new expectations for remote work, added childcare responsibilities and more, millions of American employees are on the hunt for a new opportunity, creating very real concern among business leaders about the short- and long-term impacts of high turnover.
The Great Resignation isn’t just a catchphrase—look at the stats: The recent jobs report from the U.S. Department of Labor and Statistics found a record high 10.1 million open jobs, although more than 5.5 million Americans reported being unemployed. It’s clearly a candidate’s market and, with that amount of power, your current employees can easily become tomorrow’s job seekers. As the economy is forecasted to continue improving and employees gain even more confidence in their financial footing and ability to secure a new job, all indications are that the “turnover tsunami” is just beginning.
The cost of turnover
A revolving door isn’t just a headache for hiring managers—it can have significant and lasting impact on a business’ bottom line. According to a 2017 report by Employee Benefits News, just one company exit can cost the employer one-third of that person’s salary. The costs quickly add up: salaries for those involved in hiring, interview expenses, reference checks, pre-employment screening, onboarding, even overtime for other workers to cover the gap. And, especially today, as employees become more empowered to request higher salaries or remote arrangements, employers must be prepared for even more added expenses. And that’s just for one resignation—if turnover keeps ticking up throughout the company, this trend could become crippling for an organization’s finances.
The value of retention
Investing in retaining employees is a much more sustainable—and cost-effective—solution to the Great Resignation. Instead of funneling money into rehiring for open positions, employers today can be putting their time and money toward innovative strategies to prevent those employees from walking out the door in the first place.
Employee benefits have become a goldmine for retention since the pandemic started. Expanded leave programs, childcare assistance and, of course, flexible working options should all be on the table for organizations looking to keep up with the modern needs of their workforces. Even more creative incentives like collective, companywide days off and opportunities to showcase your company’s stance on social issues can demonstrate why it’s a good place for employees to stay put. Helping them develop the skills they’ll need to continue to advance in the company is another key retention strategy many companies are turning to. Through upskilling and reskilling, forward-thinking employers today are recognizing the need to equip employees with the skills they crave—making them more likely to envision a future at the organization while also giving the company a workforce with the skills it needs to stay competitive.
While these strategies certainly come with a price tag, the short-term investments are a drop in the bucket compared to the cascading costs associated with the Great Resignation.
Lay a good foundation
To be even more proactive, companies can focus on hiring smart—right from the start. Acting as an extension of your unique brand, Integrity Staffing Solutions will help you source, recruit and hire high-caliber talent that is the needed fit—for the skills you need, the culture you’re building and the potential you’re striving for. With deep expertise in associate-level hiring, who are among the highest risk for turnover in today’s conditions, Integrity can match you with the right talent at the right time—and ultimately help you avoid the financial and human costs of high turnover.