The holiday season is quickly approaching, and for many employers, it means that their employees are quitting.
Turnover 2021
We saw employee turnover in 2021. Data shows that a minimum of 1 in 4 “people quit their job this year” (Liu, 2021). Up to 500,000 employees in the United States in various industries left their jobs voluntarily (Liu, 2021). That is to say that businesses are becoming very concerned or somewhat concerned regarding retaining their employees (Pickert & Patton, 2021).
Source/Attribution: Bloomberg
Turnover over the holiday season
Did you know that January and February are the months where companies generally hire the most (Keiling, 2021)? This makes sense. With the start of the new year, companies have new hiring budgets that they can spend. Not only are businesses more likely to hire in the new year, but at the end of the year, it often means employees receive their bonuses. As a result, many employees wait at the end of the year to receive their year-end bonuses before quitting. At the start of every new year, we all have our own new year's resolutions. For some, it is to look for a better job (Dove, 2012).
Impact of employee turnover
Employee turnover is costly and harms your company. It takes money and a lengthy process to hire and train the right candidate. At times, companies with high employee turnover would spend 2x of that employee’s salary because of recruitment, hiring, and training costs to find someone new (Indeed). When high numbers of employees are quitting, it can lead to a shortage of current employees, which can cause burnout. When a company has high employee turnover, the morale of the team falters, which lowers productivity and performance (Christiansen, 2019). Companies may find it challenging to hire and recruit new employees because candidates have no interest in working for an organization with a high turnover.
How to reduce turnover all year round?
There are many actions that employers can take all year round to help reduce turnover in their organizations. The workplace wants feedback.
When employees feel heard, they "are 4.6 times more likely to feel empowered to perform their best work” (Beheshti, 2019).
When companies respond and take action to feedback, it helps increase retention. Upskilling shows your employees that they are an essential part of your company, which helps to increase retention (Indeed). It is essential that “companies should know that training their employees is essential to retaining them” (Manalo, 2019).
Research indicates “that companies with high-recognition cultures perform better and have less turnover than those that don’t” (Peart, 2019). It is essential to provide your employees with recognition all year round. At the end of the year, employers can also provide their employees with recognition through a card or email to acknowledge their hard work and to show your employees that you appreciate what they have accomplished and done this year.
According to a study, “82% of employees think it’s better to give someone praise than a gift” (Martic, 2019).
How we can help
Retainify is an employee engagement and development software that offers a unified solution that allows you to track employee sentiment and measure engagement in real-time. Proactively identify issues that are preventing them from being their best at work. Improve business outcomes by improving the employee experience, and enhancing company culture one feedback at a time. Turn Feedback into Action.
Questions or Feedback?
Contact Us: hello@retainify.com
Citations:
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Christiansen, J. (2019, September 10). 8 Things Leaders Do That Make Employees Quit. Retrieved November 29, 2021, from https://hbr.org/2019/09/8-things-leaders-do-that-make-employees-quit
Dove, L. L. (2012, December 17). Why Do People Make New Year’s Resolutions? Retrieved November 29, 2021, from https://people.howstuffworks.com/culture-traditions/holidays-other/why-make-new-years-resolutions.htm
Florentine, S., & Pratt, M. K. (2021, August 20). Employee retention: 10 strategies for retaining top talent. Retrieved November 29, 2021, from https://www.cio.com/article/2868419/how-to-improve-employee-retention.html
Gleeson, B. (2017, October 15). 5 Powerful Steps To Improve Employee Engagement. Retrieved December 01, 2021, from https://www.forbes.com/sites/brentgleeson/2017/10/15/5-powerful-steps-to-improve-employee-engagement/?sh=6b7a4745341d
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Kaplan, J., Kiersz, A., & Hoff, M. (2021, October 12). Another 4 million workers quit in the 5th month in a row of record exits, and it shows how the pandemic is still making people rethink what they want out of work and life. Retrieved November 29, 2021, from https://www.businessinsider.com/over-4-million-workers-quit-record-labor-shortage-great-resignation-2021-10
Kappel, M. (2017, August 09). 5 Ways To Reduce Employee Turnover. Retrieved December 01, 2021, from https://www.forbes.com/sites/mikekappel/2017/08/09/5-ways-to-reduce-employee-turnover/?sh=52932c285001
Keiling, H. (2021, May 24). Q&A: When Is the Best Time of Year to Look for a Job? Retrieved November 30, 2021, from https://www.indeed.com/career-advice/finding-a-job/best-time-of-year-to-look-for-a-job
Liu, J. (2021, October 14). 1 in 4 workers quit their job this year—here’s what companies are getting wrong about retention. Retrieved November 29, 2021, from https://www.cncb.com/2021/10/14/1-in-4-workers-quit-their-job-this-year-according-to-new-report.html
Manalo, S. (2019, May 19). What is upskilling and why does it matter? by Rochelle Parino. Retrieved October 19, 2021, from https://medium.com/the-looking-glass/what-is-upskilling-and-why-does-it-matter-by-rochelle-parino-be953fd0a986
Martic, K. (2019, April 09). These 5 Statistics Reveal the Real Truth About Employee Recognition. Retrieved November 29, 2021, from https://medium.com/hr-blog-resources/these-5-statistics-reveal-the-real-truth-about-employee-recognition-7cd3ae3194fd
Mason, E. (2018, November 14). Why Employee Turnover Spikes after the Holidays and What to Do about It. Retrieved November 29, 2021, from https://blog.bonus.ly/new-year-turnover
Peart, N. (2019, November 05). Making Work Less Stressful and More Engaging for Your Employees. Retrieved November 29, 2021, from https://hbr.org/2019/11/making-work-less-stressful-and-more-engaging-for-your-employees
Pickert, R., & Patton, L. (2021, September 21). High Quits Rates, Poaching: U.S. Firms Are Plagued by Turnover. Retrieved November 29, 2021, from https://www.bloomberg.com/news/articles/2021-09-21/high-quits-rates-poaching-u-s-firms-are-plagued-by-turnover
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