Upgrading workspaces to attract and retain talent
According to the US Bureau of Labor Statistics, 47 million Americans were expected to quit their jobs in 2021, a record number largely triggered by Covid-19. The statistics proved true across the globe and came to be coined the ‘Great Resignation’. While it's true that a record number of workers quit their jobs in 2021, the 'great resignation' was fairly predictable. The average monthly quit rate increased by 0.10 percentage points every year during the past decade. In the last 20 years, India has experienced a record level of attrition, according to the Aon report. (1) A report from Deloitte found that many female employees will quit their jobs due to burnout and inflexibility within the next two years. As indicated in the report, the trend of the 'Great Resignation' has continued particularly among women. The report examined the views of about 5,000 women workers across 10 nations from November 2018 to February 2022, including 500 in India.
Harvard Business Review explains that there are several factors, magnified by the pandemic, that have caused today's labor market to undergo dramatic changes. First, there are more retirees, but fewer workers moving to other cities. Second, there is a reevaluation of work-life balance. Third, rather than leaving the job market entirely, the employees make localised shifts between industries. And fourth, pandemic-related fears make them hesitant to return to in-person work.
In response to this development, companies reevaluated their work models and adopted employee-centred initiatives to retain their best employees.
Let’s take a detailed look at their contemporary work models and initiatives-
An overview of the various work models introduced for efficiency
Sustainable changes can be made to mitigate the above-mentioned reasons for mass resignations. Companies that offer flexible working arrangements to their employees are more likely to maintain a competitive workforce.
Analyzing metrics such as performance, tenure, pay increment, and training opportunities within an organization can assist in identifying blind spots. To better understand how work experiences and retention rates differ between different employee groups, companies can also segment employees by various categories and demographics.
It can be challenging to adopt a data-driven retention strategy, but it is worth the effort to do it right. Organizations benefit from this by attracting top talent, reducing turnover costs, and ultimately creating an engaged and productive workforce.
As a business is only as strong as its employees, it is imperative that they are retained. Business leaders are reviewing working methods and offering a people-focused experience to their employees, resulting in a holistic approach to benefits. The focus of this plan is to develop leaders and implement initiatives that connect employers with their employees during times of uncertainty.
Here are a few employee-centric initiatives that businesses have implemented:
- Optimizing KPIs to focus on retaining top performers, doubling down on the best talent, and investing in employees.
- Being healthy plays an essential role in an employee's ability to feel supported. Business owners can distribute their benefits to the mental, physical, financial, and social well-being of their employees by adopting a more well-rounded approach.
- Aim for a transparent culture. The Society for Human Resources (SHRM) emphasizes that “for leadership development initiatives to be truly effective, they should align with an organization's corporate strategy and offer development opportunities that are tailored to the individual employee.”
Changing the Great Resignation, as coined by the National Economic Council, to the Great Upgrade means refocusing on improving an organization's people's experience. Retention is emphasised in this new positioning, which gives organizations a chance to transform themselves to meet the needs of their workforce. The goal is to keep great talent, attract new ones, and align with the needs of the new way of working.