Aram Lulla is President, AF | HR | IT Divisions at Lucas Group.
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Call it the “Big Quit” or the “Great Resignation.” For months now, think pieces have speculated that the pandemic is prompting a massive professional upheaval. SHRM dubbed it the “turnover tsunami,” citing research that found 52% of employees were interested in leaving their current employers this year. Of course, there’s a big difference between being interested in new opportunities and actually changing jobs.
As hiring managers are experiencing, finding qualified professionals to fill a record 10.4 million open positions is more competitive than ever. Understanding who’s quitting, who’s staying put and the reasons for these decisions is key to shoring up your talent roster.
Who’s Quitting And Who’s Staying Put
Turnover is highest among lower-wage workers earning less than $18 an hour. The Washington Post (paywall) reports these employees are primarily in industries directly impacted by the pandemic, including education, health services, leisure and hospitality. These industries experience high churn even under ideal conditions, and with added Covid-19 risks, these jobs are understandably less desirable.
Another factor is the mismatch between industries with the most job openings and where people are looking for work. For example, according to that same Washington Post article, there are 1.8 million job openings in professional and business services and fewer than 925,000 people actively seeking positions in this sector. Further exacerbating this disconnect, many of these active candidates might not have the right skills or experience that companies need to fill their open positions.
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But what about all the professionals who indicated they wanted to leave their employers? The “turnover tsunami” has been more like a “turnover trickle.” Across all industries, the quit rate was 2.9% for August 2021, according to the most recent data from the Bureau of Labor Statistics.
Why Are Fewer Professionals Leaving Their Companies Than Expected?
Remote work has changed how we think about our personal and professional lives, and for some individuals, this experience has crystallized dissatisfaction with their current jobs. They’re seeking more meaningful work, greater location flexibility or more time with family. These factors are very specific to the individual, and consequently, they aren’t just looking for any open position. Unless someone is trapped in a toxic work environment or needs to leave for urgent personal reasons, they’re likely waiting for the right opportunity. These professionals may be passive job seekers for months before making a move. I believe that’s why we’re witnessing a slow departure trickle rather than a mass exodus.
There’s also a “grass is greener” phenomenon at play here. When you’re stuck on your millionth Zoom call, the idea of being elsewhere is undoubtedly appealing. But with many companies continuing their remote work policies due to the delta variant, the reality of switching jobs may not be as appealing. A new job requires building a whole new set of working relationships and navigating a company’s culture and workplace norms, both of which can be harder to do remotely. There’s a sense of comfort, familiarity and ease staying with a company you already know.
Employees are also very loyal to the teams they’ve been in the trenches with these last 18-plus months. Video calls have brought us into one another’s homes like never before. There’s a strong sense of camaraderie and community, and building this over again with a new team can feel daunting.
Mitigating Flight Risk: Why You Should Consider Stay Interviews
While turnover rates may not be as high as predicted, voluntary departures are still a concern. Here’s the good news: Your employees are more likely to be passively searching rather than immediately jumping ship, so there’s time to make changes that could help top performers stay put.
A “stay interview” is a structured discussion that identifies potential departure red flags and pinpoints improvement opportunities. Effective interviews will help answer the following questions:
• Do employees feel a sense of purpose in their work and connected to your company’s mission?
• Are employees satisfied with their work/life balance, or are they at risk for burnout?
• Do employees feel like their opinion matters?
• Do employees see a pathway to career growth at your company?
Not only does the interview itself help your employee feel valued and heard, but the insights you glean can help address pain points before your employee gives notice.
My Company Is Struggling To Hire — What Should We Do?
Instead of losing top performers, your company may be facing the opposite problem: hiring the right professionals. The high number of open positions means job seekers aren’t afraid to be picky, and if there’s no sense of urgency to change jobs, professionals may be content to go on exploring options for the foreseeable future. Your company needs to give them a compelling reason to choose your business now.
Money helps, but it isn’t everything. Since the reasons for switching jobs are highly personal, you’ll need to identify these motivators and speak to them throughout the interview process. If someone is looking for more reasonable work hours to prioritize time with family, for example, let them know there’s no expectation for answering emails after 6 p.m. or that employees are required to take at least five consecutive days off each year. This is also why partnering with the right recruiter can make a huge difference, giving your hiring manager expert insight into candidate motivators.
While the predicted turnover tsunami hasn’t materialized as expected, this is still a critical moment for your business to assess how it can be better about hiring the right talent and keeping these performers engaged for the long haul.
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