Over the last two years, businesses everywhere experienced a paradigm shift. Unexpected challenges have forced many to adapt, and a historic labor shortage has ignited fierce competition over top talent.
According to the Bureau of Labor Statistics, 4.3 million American employees left their jobs in December 2021, leading to a 40% increase in overall quitting year-over-year and a widening gap between new hires and resignations. As of Feb. 1, U.S. employers posted 10.9 million job openings, a slight increase over 2021’s final figure. But what’s fueling this trend?
According to CNBC Workforce Wire, reasons vary from enticing new job offers to toxic work environments, but the key driver of this historically high turnover appears to be “workers [who have] become more selective in the type of jobs they are willing to consider.” In fact, this view suggests that a business’s greatest advantage is to exceed the expectations of its prospective talent and current workforce alike.
Amid a workforce realignment, the axiom “a job’s a job” doesn’t cut it. Today’s worker needs an opportunity, and organizations must provide one if they expect to navigate this shift with confidence. After all, employees will continue to be an enterprise’s most valuable renewable resource in 2022 and beyond.
There’s no denying that rising to this occasion is a steep challenge, but luckily, it’s more than possible with an effective strategy and the right tools to analyze and understand your personnel. Here’s how:
Knowing your employees
Identifying what truly engages and motivates your employees will help you make informed decisions to sustain their long-term satisfaction. The initiatives that speak to your workforce may be unique to your business, which is why it’s crucial to identify employee needs before making assumptions.
A powerful surveying tool that enables you to easily and securely collect feedback from your employees helps you get an impartial grasp of what matters to them. According to the Society for Human Resource Management, providing ongoing feedback is key to effectively developing employees. Likewise, collecting feedback from your workforce helps strengthen your retention strategy by providing insight into what initiatives truly inspire them.
Tendencies like this are overarching, and these are preferences nearly all of your staff may have if your industry allows for it. However, even decisions made about half of your workforce may not be what your employees truly need. Chances are with a bit of fine-tuning, experimentation and continual, transparent communication, you’ll be able to hone in on what inspires your entire organization.
Focus on learning
In 2022, top talent aren’t looking for a position to plateau; they’re looking for a platform to develop, upskill and launch their career. And according to a survey from Deloitte, 73% of employees feel it’s their organization’s responsibility to provide them with ongoing development opportunities.
For any learning strategy to stick, it requires persistence from your leaders. Consistent, top-down messaging around your development opportunities will help inspire your entire team, not just the exceptional go-getters.
And a comprehensive learning management system that allows your workforce to train and develop anytime, anywhere through an intuitive mobile app will help them do so in a fashion that better accommodates their work life.
Pay planning
Regardless of the size, scope and industry of your business, your employees’ compensation should be among your top priorities. Gather feedback on this front, and don’t shy away from difficult questions. Exit interviews and understanding what your competitors are offering is a solid start, but experimenting with variable compensation methods could give you added versatility, especially if widespread raises aren’t in your budget.
Speaking of budgets, look for potential gaps or missed opportunities with your finances. Even small alterations — like gradual raises or periodic bonuses — may be enough to boost your employees’ commitment or, at the very least, compel them to consider more than just a salary increase if they’re entertaining offers from a rival employer. Plus, remember that pay isn’t the only factor your talent considers; offering unconventional benefits that accommodate an employee’s lifestyle could give you a competitive edge that a salary alone can’t match.
And don’t forget to consider your workforce’s experience as it relates to their pay. Consider implementing a self-service payroll tool that helps them understand their paycheck on a deeper level, reduce trust-breaking mistakes and empower them to plan for their future before payroll runs. While categorical raises may not always be an option, placing more trust in your employees — especially with regard to their livelihood — most certainly is.
Above all, remember that your business’s realignment isn’t a short-term fix, but a long-term, largescale effort that will shape the face of your operations well into the future.
For a deeper look into this process, access our on-demand webinar, The Great Resignation: How to Manage the Realignment of the Workforce. And learn more about Paycom’s all-in-one software, featuring an abundance of tools to simplify and enhance your employees’ lives.
DISCLAIMER: The information provided herein does not constitute the provision of legal advice, tax advice, accounting services or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional legal, tax, accounting or other professional advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation and for your particular state(s) of operation.
