One of the most common sentiments that leaders share is, “How can our company keep great people?”
And, as if this wasn’t already enough of a challenge, recent data is showing a new trend of high turnover in our current economy.
Here’s what we know about turnover.
And this is precisely the reason so many leaders worry about keeping their talent. High turnover means an enormous cost to companies because it leads to the constant repetitive cycle of recruiting, selecting, hiring, and training new people. Not to mention the possibility of losing their top talent to the competition.
Let’s take a closer look at what is driving the current trend of high turnover in today’s workplace:
A strong job market with lots of opportunities can lead to higher turnover rates as employees have more options to explore other roles. They may leave their current positions and companies in pursuit of higher salaries, better benefits, or improved career prospects elsewhere.
Burnout is a major factor in turnover. A recent Deloitte survey indicated that 77% of respondents felt burned out at their present jobs. According to the survey, employees also do not believe their employers are doing enough to improve workplace stress levels, especially following the pandemic.
Rapid technological advancements, including the advancement of Artificial Intelligence (AI), require employees to continuously update their skills. Those who feel their skills are becoming obsolete may leave their current jobs to pursue opportunities that allow them to acquire or utilize more relevant skills.
Poor company culture, lack of opportunities for professional growth, and low levels of employee engagement can drive turnover. Employees are more likely to stay with organizations that prioritize their well-being, provide opportunities for advancement, and foster a positive and inclusive work environment.
The pandemic shifted the way we work. While remote work offers flexibility, it can also present challenges such as isolation, communication difficulties, and blurred boundaries between work and personal life. Employees who struggle with these issues may opt for jobs that offer a traditional office environment or a more structured work arrangement.
Fortunately, there are many ways to improve and turn around high employee turnover. Organizations can:
Doug Conant, founder and CEO of Conant Leadership, and former president and CEO of Campbell’s Soup, said it best, “To win in the marketplace, you must first win in the workplace."