Is your business being affected by the ‘great resignation’?
➼Employers now have a greater obligation than in the past to convince existing and would-be employees why they should stay or join their organizations. And there is no evidence to suggest this trend will change going forward.
➼What can companies can do to adapt?
➼It has been estimated that the cost to the employer of replacing a departing employee is on average 122% of that employee’s annual salary in terms of finding and training a replacement.
➼Thus, there is a large incentive for businesses to adapt to the new labor market conditions and develop innovative approaches to keeping workers happy and in their jobs.
➼A May 2021 survey found that 54% of employees surveyed from around the world would consider leaving their job if they were not afforded some form of flexibility in where and when they work.
Given the heightened priority employees place on finding a job that fits their preferences, companies need to adopt a more holistic approach to the types of rewards they provide.
➼While customizing the package of rewards each employees receives may potentially increase an organization’s administrative costs, this investment can help retain a highly engaged workforce.
The quit rate is likely to stay elevated for some time to come. The sooner you accept that and adapt, the better you will be at managing this the new normal.
Taken from a published article in theconversation.com website – November 12,2021