Turnover Trends in 2022: Observations from BES

As we flip the page into 2022, it’s the annual chance to introduce new goals, improve work and life habits, and, oh yes, continue to bob and weave with the ongoing pandemic.  Here at BES, we continue to track the impacts that COVID-19 is having across workplaces worldwide.  

“The Great Migration”, as Josh Bersin coined it is certainly top of mind for many, whether you’re an employee contemplating a change or an employer focusing on retention strategies.

While job placements were up nationwide throughout 2021, so too was the voluntary quit rate, with more than 370,000 people voluntarily leaving their jobs in the month of November alone, according to the Bureau of Labor Statistics. The quit rate of 3.0 indicates that workers are leaving job opportunities for greener pastures—changing companies, retiring or stepping out of the workforce, as their needs go unmet by current employers.

Many of our clients are focusing on retention strategies, keeping  teams engaged and motivated.  At the same time, with all the priorities sitting on HR’s shoulders, we regularly encourage our clients to make retention a priority, to engage more deeply with their employees before they start looking around.  

STRATEGIES TO ADDRESS RETENTION

Listen Closely to Employees

One approach is “stay interviews”, underway at Mercury Systems, where Emma Woodthorpe serves as CHRO.  “People are really tired. People are worn out, and especially parents and caregivers for elderly,” Woodthorpe tells us in our recent C-Suite Conversation.

“We’re doing an engagement study now, with managers and their employees, to understand what’s going on [with employees], what they need, and where they’re at. We’re calling them ‘stay interviews’, where we’re asking people what they’re thinking about and what they’re worried about.” By doing this, we feel we’re able to get a leg up on attrition.”

Once you identify trends through listening, it’s critical to take action.  Be sure to address the issues but also demonstrate to employees that you are listening and valuing their feedback.  Working remotely or hybrid usually means less informal feedback.  All employees need regular communication and appreciate an opportunity to be heard. 

Pay and Benefits

Employers are addressing compensation concerns so they don’t end up in counter offer situations. Pay rates have increased across sectors in 2021. In the fourth-quarter edition of the Business & Industry Economic Outlook Survey released by the Association of International Certified Professional Accountants, respondents predicted an average increase of 4.3% in salary and employee benefit costs in the year to come — the highest such measurement in more than 12 years.

Employee Development

While pay and benefits matter, employees growing at their organizations--whether in a new role, a stretch assignment or growing in their current position is deeply important to them.  Organizations that focus on employee development have a strong edge in retaining their employees.

As the labor market and pandemic flex their muscles in new ways, we’ll continue providing guidance and observations to our clients every step of the way.  If you have other suggestions on how we can support the HR community, we’d welcome your ideas!