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In 2023, approximately 27% of U.S. workers resigned, costing employers nearly a trillion dollars in turnover expenses. Turnover rates are anticipated to rise, with experts forecasting a new wave of the "Great Resignation" as employees opt to leave their positions.
Employee retention is a significant challenge for employers in various industries this year. According to a LinkedIn survey, 85% of workers are considering a new job in 2024, marking an almost 20% increase from the previous year. This trend is especially prevalent among younger generations. As workers weigh the potential benefits and risks of changing jobs or careers, many are deciding to pursue new opportunities, leaving their current employer.
Why Employees are Quitting
In recent years, workers are leaving employers due to inadequate salaries, limited career advancement, work-life imbalance, health and family issues, and general unhappiness. Employees are prioritizing their happiness and finding the best job fit while balancing personal responsibilities.
Retention Best Practices for Employers
As the workforce landscape transforms and employee needs evolve, organizations must embrace creative tactics to ensure their employees remain motivated and content. Explore these approaches to enhance employee retention:
- Foster a positive work culture. Create an inclusive environment that values and respects employees, fosters collaboration, and recognizes achievements can boost morale and enhance a sense of belonging.
- Offer competitive benefits and compensation. In 2024, competitive compensation extends beyond salary to include comprehensive benefits such as health and wellness programs, retirement plans, PTO, and flexible working arrangements.
- Provide career development opportunities. Employees are more likely to stay with a company that invests in their professional growth with things like training, career advancement and mentoring.
- Embrace flexibility. Flexibility, including remote work and flexible hours, enhances job satisfaction and helps employees balance work and personal life efficiently.
- Promote work-life balance. Promote a healthy work-life balance by encouraging breaks, PTO utilization, and switching off after hours to prioritize employee well-being.
- Cultivate strong leadership. Strong leadership is essential for retaining employees, inspiring loyalty and commitment through approachability, empathy, and transparency. Leadership training equips managers with the skills to support their teams effectively.
- Encourage open communication. Promote open communication to build trust and prevent conflicts in the workplace.
- Recognize and reward performance. Regular recognition boosts morale and retention through individual and team acknowledgments like bonuses, awards, public acknowledgment, and career advancement. Appreciation reinforces positive behaviors and commitment.
- Invest in employee well-being. A healthy workforce is more productive and loyal. Employee well-being encompasses physical, mental, and emotional health, with employers adding resources like mental health days, fitness programs, and stress management workshops.
- Solicit and act on employee feedback. Regularly collecting employee feedback through various channels, shows employees their voices are valued. Acting on feedback enhances transparency, significantly boosting job satisfaction and retention.
- Enhance employee engagement. Engaged employees are more likely to stay with their employers. Enhance engagement through decision-making involvement, meaningful work, social interaction opportunities, and team-building events to foster a sense of community.
Employers should continue to monitor trends and consider strategies to retain and attract top talent to adapt to the ever-evolving landscape of the workforce. Download the bulletin for more details.