Thu, 16 Jun, 2022
2022 was the year of the ‘Great Resignation’, where talent abandoned jobs en masse. Whilst the phenomenon is slowing down, a high volume of talent are still leaving their roles. If you want to attract and retain top talent for your company to grow, you need to upgrade your strategy today.
At the beginning of 2022, more people were leaving their jobs than ever before. Only in the US, the quitting trend has been hitting record levels for eight months. And in Australia, 1 in every 4 workers planned to get a new job at a different company: at least 10% higher turnover than before the pandemic.
But why does this matter? In a market with high turnover and more job openings than qualified candidates, engaging and retaining top talent is crucial.
You need to hire and keep the right people in your organisation, you need to understand what drives the Great Resignation in the first place.
The Great Resignation— why do people leave their jobs?
Knowledge is the first step in a great talent strategy. You need to understand your employees and candidates: what motivates them, what puts them off an employer, and what makes them leave.
According to a 2021 study by McKinsey, 40% of workers are likely to leave their jobs in the near future (up to 6 months). And in Australia, 1 in 4 businesses state their attrition rates have been higher than usual in the past year.
But why do employees leave? The McKinsey study shows a fundamental disconnect between the reasons managers believe employees leave for— and the reasons they actually report.
According to the employees themselves, the most important motivators to quit include:
- Poor work-life balance.
- A work schedule without flexible options.
- Lack of belonging.
- No solid team relationships.
- Not feeling valued by their manager or by the organisation.
- No opportunities for growth.
But employers only spotted the first of these attrition factors— poor work-life balance— while misidentifying others (such as higher compensation, not all that important to employees).
A strategy to grow in the Great Resignation.
A company that understands talent’s priorities and reasons to switch jobs can capitalise on the Great Resignation— with the right strategy.
Your organisation needs to reassess the EVP (employee value proposition) and realign it with the new motivating factors of employees. By proactively meeting candidate and employee needs, you stand the best chance to hire and retain top talent, gaining an edge on your competitors.
1. The employee experience comes first.
While only 52% of companies worldwide prioritised the employee experience before the pandemic, up to 92% now make this a key goal for the next three years. This signals a fundamental reshuffle: retaining and attracting talent has become much more competitive.
To stay ahead of the competition, you need to spot decreased wellness, productivity, and engagement in your employees— and work to improve the experience for your team.
The priority: creating a company culture of positivity, value, and trust from leadership to employees. How to make sure your employees feel engaged and appreciated:
- Work with each employee to offer clear pathways of growth.
- Provide mentorship opportunities at all levels.
- Foster values of openness and support in leadership roles.
- Celebrate your employees’ good performance.
- Offer destigmatised mental health and flexibility options.
- Include your employees in your decisions.
2. Make compensation transparent.
More than higher compensation and benefits, employees value transparency and consistency.
If you hire a new employee with a higher salary than you offer current talent, that shows a lack of appreciation. If you keep employees in the dark about your compensation scale, you risk them looking elsewhere for fairer opportunities.
A crucial reason to share salary information transparently: 42% of employees paid over the market rate still feel like they’re being underpaid. And this has a direct impact on retention: those who feel that way are 50% more likely to look for a new job.
To keep talent engaged and happy with their pay you need to build a culture of fairness:
- When offering a new hire a competitive salary, make sure your current employees’ compensation is consistent.
- Provide a clear and comprehensive guide on your pay band system.
- Ensure your employees understand their next step and how they can get to a higher compensation rung.
3. Be willing to be flexible.
An Australian study states that 80% of millennial workers (between 20 and 35 years old) prefer working remotely.
And 60% of workers of all ages state that location flexibility is even more important than career progression. Plus, people working from home are more satisfied with the employee experience and 50% less likely to quit.
But it’s not only about location. Flexible arrangements can affect work schedules: up to 95% of workers want to choose their hours. This requires a shift from valuing time spent visibly grinding away to a more results-oriented approach.
Many employers are opting to gather employees together only when there’s a clear purpose for it. In any case, adopting a flexibility strategy asks that employers build a culture of trust and put their employees’ needs first.
4. Invest in your employer branding.
A global LinkedIn study revealed that 3 out of 4 candidates will consider the employer brand of a company when applying for a position. Neglecting your employer brand has negative consequences:
Nourishing and communicating your employer brand is a crucial component of talent attraction. If your reputation as an employer is positive (for example, everyone knows you offer flexible arrangements and transparent compensation with growth pathways), top talent wants to work for you.
To develop this positive public image as an employer, you need to improve the experience of your current employees. Listen to their input— they’ll tell you what makes a job in your company a unique employment opportunity.
Evaluate current metrics (referral quality, hire quality, employee engagement) to learn where your employer brand can get better and set objective, trackable goals.
5. Commit to active DE&I practices.
Diversity, equity, and inclusion are more important than ever for attraction and retention.
Nowadays, over 75% of candidates consider whether an organisation is diverse before they work with you. For example, whether your social media feature minority voices or whether they encounter people from a variety of backgrounds during the interview process.
And employee engagement also heavily relies on solid practices to foster diversity. These may include changing policies to support parents, providing supportive mentorships, and offering flexible arrangements.
Some tips to start fostering DE&I in your organisation:
- Review the language in your job ads and remove any exclusive sections (eg., jargon, convoluted language, gendered expressions).
- Instead of sticking with fixed holidays (usually Christian holidays), offer floating holidays so employees can easily keep religious observances.
- Provide mental health assistance without pressure or stigma.
- Look to non-traditional career paths for hires from diverse backgrounds.
- Communicate how important DE&I is to your company in all your public channels.
6. Adopt a smart recruitment strategy.
The Great Resignation is a candidate’s market. It’s not enough to post job ads and interview candidates— you need to go looking for top talent if you want your company to succeed.
And you should develop a smart strategy to do so. Use data points (such as reports from LinkedIn insights) to refine your targeted recruitment campaigns. Also, build an employee referral system to maximise your employees’ network and reward successful and diverse referrals.
To power up your attraction and recruitment strategy, work with an agency like Fulcrum. We embed a specialised team to refine your employer brand and elevate your hiring process.
Our goal is to help your company build a winning team and a culture of trust, diversity, and flexibility for long-term success. Work with us today!
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