How to hold on to your staff

With the ‘Great Resignation‘ looming, it is important businesses prepare strategies to avoid a mass loss of employees, writes Alex Hattingh. She explores the options employers can take.

The pandemic has, in so many different ways, shifted the way we think about the world. As we prepare to move into the next stage of living with COVID-19, we’re all assessing our relationships to risk, to health — and to work. 

It seems that every day, stories and data emerge showing how the pandemic has made people rethink their career, or at least deeply question the role of work in their life, with millions of people in the US voluntarily calling time on their jobs. 

In New Zealand, it looks like we’re heading that way as people increasingly re-evaluate the role of work in their lives and what sort of psychological contract they are willing to enter into with their employers as part of what’s being dubbed ‘The Great Resignation’. 

According to our recent Employment Hero survey, 39 percent of New Zealand employees plan to look for a new role in the next six months, with 19 percent of employees currently on the hunt for a new role. 

The Employee Movement and Retention Report, which surveyed 1,000 workers across New Zealand, has resulted in some staggering finds, showing why many New Zealand workers are seeking out new job roles.  

Whether it be a shift in priorities, hopes to pursue a ‘dream job’, or transitioning to being a stay-at-home parent, the reasons are widespread and are driving a huge upheaval in employment movement.

“With the ‘Great Resignation‘ looming, it is important businesses prepare strategies to avoid a mass loss of employees. Businesses have one of two options: adapt or perish.”

So, with the ‘Great Resignation‘ looming, it is important businesses prepare strategies to avoid a mass loss of employees. Businesses have one of two options: adapt or perish.  

Offer a pay rise 

Handing out pay rises is not always feasible for businesses against the backdrop of the pandemic, but if businesses can afford to give their workers a salary increase, now is the time for them to take action. 

The cost of turnover is high, so it is better for them to shuffle funds now to stay in line with industry standards than to cop the costs later. 

Our findings show that 37 percent of workers identified ‘no pay rise’ as the top reason for wanting to leave their role, with women 21 percent more likely to select this as a reason. When asked what would encourage them to stay in their current role, a whopping number (62 percent) of women stated a salary increase. 

Unsurprisingly, this is especially true for the 45 percent of workers whose pay has not been reinstated in full after receiving a pandemic pay-cut.  

Unfortunately, this could mean that companies will compete fiercely for staff, so it is important that you weigh up the cost of losing an employee vs rewarding hard work and loyalty. 

Consider a career development pathway, and double down on showing appreciation 

If a business doesn’t have the resources available to offer promotions at this time, they can set up a career development pathway for their staff. 

Thirty percent of workers seeking new roles are doing so because they feel under-appreciated. If a company doesn’t have a culture of recognition, developing one should be high on the agenda over the next critical six months. 

A further 33 percent of respondents cited a lack of career opportunities as the impetus to leave, and another third noted a lack of appreciation or recognition from employers as a contributing factor. Interestingly, those aged 45 to 54 were 69 percent more likely to select a lack of appreciation and recognition as their top reason for leaving. 

Companies need to work with their people to plan where they would like their career to go and outline how they can help them get there; whether that be with additional training, internal mentorship or a change of responsibilities. 

Appreciation and recognition doesn’t have to come in the form of large bonuses or frequent promotions; small shows of appreciation can be powerful. In fact, businesses may find that their team benefits more from regular reinforcement, rather than waiting for yearly monetary displays. 

Be open to flexibility 

The pandemic has shifted people’s views on work-life balance, and as a result, employees have become more emboldened to ask for what they want. 

We know that flexible options are going to be a part of working futures, so it is important that businesses modify their approach to working schedules or risk losing employees. 

Feeling overworked was the fourth most common overall reason respondents cited as a motivator for job seeking, at 24 percent. Thirty-nine percent of employees in large businesses (with more than 200 employees) felt underappreciated. 

The pandemic has made employers realise that remote working is not just a viable option, but that it can often boost productivity and improve employee work/life balance. It is an asset to a business to be able to provide remote working. 

Companies will have to brace for a shift in the workforce as employees gain the upper hand (at least for a little while). This is no time to push for growth at all costs, as extending yourself while experiencing high turnover can be disastrous. 

Yes, businesses need to turn their attention back to growth slowly, but ensure your people are treated with care and feel valued. It takes time, effort and consideration, but the more businesses invest in their employees, the more employees invest in their business. 

Alex Hattingh is chief people officer at people-management platform Employment Hero.