The Coronavirus pandemic brought the world to a halt. Businesses were forced to close their doors, and unfortunately, many lost their jobs. Redundancies were made to save companies and ensure they could recover after the pandemic. Those who weren’t let go were placed on the government’s furlough scheme, helping businesses to pay staff even when they weren’t at work. Those who could work from home did, but many took time off to reevaluate their job roles and quality of life.
The pre-pandemic work culture was heavily influenced by the hustle and burnout work ethic. Employees felt like they had to work to the bone to reap any rewards or gain recognition for their work. This resulted in burnout and even illness.
What Is The Great Resignation?
The Great Resignation is the name given to the phase of increased employee resignations over the past year. This is a recent phenomenon; however, it has been building in the background for over a decade. At the start of the Covid-19 pandemic, the quit rate fell rapidly as people understandably wanted to remain in secure employment. At the same time, they were unsure about the scale of the impact Covid would have. However, shortly after the first lockdown, the employee quit rates slowly started to creep up. By the first half of 2021, the rate was at an all-time high. The quit rate doubled from 1.6% to 3% within a year.
The underlying cause of this mass resignation is said to be a result of an economic and psychological shift. Employees working in notoriously bad industries such as hospitality and retail were furloughed throughout the first half of the pandemic. This allowed time to reevaluate their job roles and whether or not it was worth their time.
As businesses began to open their doors once more, they advertised for vacancies at a higher wage than previously. The employees who saw that they could get paid a better salary for the same or more favourable work elsewhere took the opportunity. People were simply leaving their jobs because they could have it better.
The Effect Of Toxic Company Culture
Company culture has become a huge talking point in recent months. It is universally understood that a good company culture supports a happy and productive workforce. However, many companies out there don’t acknowledge this. Lowering employee stress levels not only helps to promote a positive work environment but also helps to keep them safe from stress-related illness. If an employer doesn’t nurture a culture that breeds respect from their staff, then they are in trouble.
Understanding what your company stands for and its core values are essential in employee attrition in 2022 and going forward. As workers reevaluated their priorities during the pandemic, toxic company culture was one of the leading factors in their decision to resign, along with insufficient pay. Organisational culture in the past may have been overlooked in favour of making a profit. It may have meant a complimentary fruit bowl or a dress-down Friday. Unfortunately, this only masked the real issues that needed addressing.
It is fast becoming accepted to be able to challenge bosses on lousy company culture and offer constructive criticism on what can be done to change things. This has brought to light a lot of the fundamental issues that lead to employee unhappiness and, ultimately, their resignations. There have been several culture crises in the media, with companies such as Uber coming under fire for not offering their employees paid annual leave. It is more important than ever that positive and inclusive cultures are promoted and provide support for everyone.
Employee Benefits of a Strong Culture
A strong company culture yields all kinds of benefits. Not only does it ensure employees are adequately looked after, but it also casts corporations that have one in a positive light. When people see that a company values its staff and provides them with a safe and positive work environment, it translates into other aspects of a business.
Growing a positive company culture can boost productivity and drive if staff is encouraged to set regular and achievable goals. Knowing what a good work culture looks like helps retain your current team and makes you more attractive to prospective employees. Most importantly, your company culture will massively affect your brand’s identity. You reflect what you believe. Positive, aspirational employees who are recognised and supported will show in their quality of work and interaction with customers.
Work-Life Balance: A New Necessity
This is the key focus of millennial retention in the workforce. The millennial generation is quickly becoming the majority of the working population. It is set to make up 75% of employees by 2025. So, appealing to them is in every employer’s best interests. There has been an enormous shift in the approach to work recently, with workers looking for less time in the office and more time to spend with their families and friends.
The ‘hustle culture’ of previous generations made work the priority, even if it was to the detriment of their health. Nowadays, employees are looking at more creative ways to earn money and still maintain their identity outside of their job.
Corporations have been trialling four-day work weeks and a flexible working approach to cater to those with childcare obligations and give others more free time. The goal is to have a healthy and happy workforce who don’t feel pressure to turn up when they are unwell or be questioned when they are unavoidably late. Staff want to be trusted and show their commitment to the business by the quality of work they produce.
How To Keep Your Employees Engaged In Work
No two people are the same, which should be considered when improving employee engagement. People have different opinions, drives, and working methods that are not always catered for in corporate settings. The old idea of working 9-5 for five days a week is fast becoming a thing of the past. Providing a dynamic work environment that inspires staff to perform at their best is of the most valuable things you can do to improve attrition.
Ensuring your employees are invested in their role and the business as a whole means making sure they are happy and feel valued. Setting clear KPIs and job descriptions can help clarify what is expected of each staff member. In addition, providing them with suitable materials to do their job to the best of their ability is essential. It is also important to acknowledge employees’ efforts, as recognition boosts confidence and reassures them that they are doing the job well. Taking a genuine interest in staff will help to improve engagement too. Not only will they feel seen, but it will help you to recognise when they are struggling and support them.
Are You Paying Your Staff What They Are Worth?
Underpaid workers are proven to be more likely to underperform and even resign from their position. Not paying staff a competitive salary can harbour a toxic attitude towards work that can spread amongst the workforce. While it may seem the right thing to do from a financial perspective, cutting costs with staff never ends well.
Not paying adequate salaries to your staff promotes laziness and a negative attitude towards work. So, while you may be spending less money, there will be significantly less work to show for it. Staff paid a competitive wage to have higher productivity levels and greater investment in their role in the business.
Employee turnover is the most significant risk when it comes to underpaying staff. If a team member can be paid more to do the same job elsewhere, they will often quit their current position. Taking the time to analyse the job market, see the current salaries in your industry, and pay staff correspondingly will help prevent them from shopping around.
Providing Opportunities For Growth & Self-Development
Nobody wants to stagnate in their role. It is natural for people to develop and seek to improve their position at work. Employee development is one of the key ways to improve productivity in the workforce. When people have a goal to strive for, they are much more likely to feel motivated to do the work to get them there.
Building skills and knowledge is also highly valuable to the business as it increases employee confidence and gives them a much better knowledge base of the industry. Promoting employees internally makes them a much more valuable asset to the business. They are already invested in the company and its values. They are also more inclined to stay loyal to the business if they feel career opportunities are available.
Retention is the goal here. There is no better way to ensure employee retention than by creating genuine opportunities for self-development and growth. Moreover, the hiring process costs money. Hiring and training a new employee for a position that an existing employee is qualified for is a greater expense to the business. Not to mention the current frustration employees may feel if they are ready for a promotion but are kept in their current role due to an external hire. Employees who believe in the business and respect their coworkers and management are likelier to stick around.
How To Ensure Your Employees Are Happy
If you feel your business could benefit from implementing a stronger company culture, there are steps you can take to get you there. First and foremost, it is essential to hear what your employees have to say about the current working environment. Reaching a general consensus on how the staff feel will help pinpoint where the issues are or will potentially arise in the future. This will also demonstrate to staff that you value their opinions and look out for their best interests. Having your employees on board and invested in cultural changes will give them a greater sense of influence and value to the business.
Implementing Training Courses
There is no better way to improve development in your workforce than training courses. Carrying out regular training allows employees to expand their knowledge and helps keep your business up to date with the latest developments in your industry. Online business skills courses can be scheduled, so staff don’t even have to leave the office, or they can take them from the comfort of their own home.
Those looking to improve their skills and reach new goals can benefit from personal development training. This will teach the soft skills needed to succeed in the journey and provide the proper knowledge and awareness for the job.
