Over the past year, and largely fueled by the pandemic, the term “Great Resignation” has become all too familiar with employers as well as the headache of employee turnover. According to the U.S. Bureau of Labor Statistics, approximately 38.6 million resignations occurred between January and September 2022, and the number of employees quitting has remained fairly steady month over month. Today, a fair number of employers are experiencing the adverse impacts of workforce turnover. In terms of financial loss, the cost of replacing an employee can range from one-half to two times the employee’s annual salary, depending on their role. Additionally, declining productivity, a lack of engagement and low morale are present as remaining associates must often pick up the slack from departing team members. This can lead to even more employees quitting. One might ask the question: Is there an end in sight to the revolving door of employee turnover? THE GREAT RETENTION Tips to Retain Your Employees In 2023 It is essential for employers to dig deeper into this problem to understand what is happening and to start the process of turning the Great Resignation into the Great Retention this year. In a recent survey by iHire, 2,665 U.S. workers named the top five reasons employees left jobs in the past 12 months: 1. Unhappy with their manager/supervisor (43.7%) 2. Unsatisfactory pay/salary (43.4%) 3. Poor work/life balance (35.4%) 4. Lack of recognition/appreciation (29.7%) 5. Few growth/advancement opportunities (28.3%) It is not a surprise that “unsatisfactory pay” was on the list at number two. Having a competitive compensation strategy is crucial to retention, especially in the economic climate we have today. However, it’s important to note that the other four reasons listed for turnover revolve around the employer needing to put its people first and improving the company culture. Benefits like health insurance, profit sharing and paid time off have become fundamental expectations in the wake of the pandemic. Not to underestimate their value because they are important, but benefits are not driving employee retention. To open the door to the Great Retention, company culture must be addressed. 20 KENTUCKY AUTO DEALER
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