As if the historically low unemployment rate wasn’t already causing hiring managers headaches as they seek to fill vacant jobs from a limited candidate pool, there’s another concern that needs to be on their radar: employees quitting their jobs at an escalating rate.
Per the latest JOLTS report from the Bureau of Labor Statistics, more than 3.3 million U.S. workers voluntarily quit their jobs in December 2017 — that’s a 17-year high. And a recent survey from staffing firm Accountemps found that 29% of professionals plan to look for a new job this year.
With recruitment already difficult, employee retention takes on renewed importance. While there are a wide variety of reasons why employees might want to quit their jobs, there are also relatively simple steps managers can take to make them want to stay, notes Jim Jeffers, metro market manager of staffing firm Robert Half in Madison.
The majority of reasons why employees quit their job are things that could have been prevented by the employer, explains Jeffers, such as:
- Poor relationship with manager and/or colleagues;
- Dissatisfied with overall corporate culture;
- Bored and unchallenged by the work itself;
- Too few opportunities to use their skills and abilities;
- Limited growth opportunities and/or lack of a defined career path;
- Lack of autonomy and independence;
- Little to no recognition of employee contributions; and
- Not enough work-life balance
To that end, managers can improve the happiness level of their staffs by being approachable to employees and communicating effectively, says Jeffers.
“Don’t micromanage,” Jeffers advises. “Managers who demonstrate trust in their employees and give them breathing room tend to have more solid staff retention. Provide feedback and constructive advice. Recognition for a job well done is also essential when it comes to staff retention. Bosses who offer a sincere thank you or small gift card show people on their team that they appreciate their hard work.
“Help employees grow,” Jeffers continues. “Managers who value staff retention help employees expand their knowledge and abilities with challenging assignments, training, and career development opportunities. Also, provide challenging and rewarding work. Employees want projects and assignments that keep them on their toes and break the monotony of their daily routine. Finally, promote work-life balance. Offering to let employees work remotely or schedule work around personal obligations from time to time is a great way to help alleviate their stress levels.”
Hire smarter
If employees do leave, hiring managers need to look beyond traditional hiring methods to lure new talent.
A high quit rate coupled with the extremely low unemployment rate for Madison — 1.9% as of December 2017 — tells us that, while on the hunt for new opportunities, job seekers aren’t on the market for long, states Jeffers.
For employers, this means that a fast and efficient hiring process is crucial. Qualified candidates may be tough to find, but shrewd businesses know how to attract them.
“Hiring strategies are, in fact, shifting,” says Jeffers. “Sixty-five percent of CFOs surveyed by Robert Half said it is somewhat or very challenging to find skilled candidates for professional roles. To cast a wider net, 51% of executives are considering entry-level applicants for roles that historically weren’t open to them, and an equal percentage are expanding their search geographically. Other strategies include bringing on interim professionals, shortening the recruiting process, and loosening job criteria.
Jeffers offers the following tips for companies looking to strengthen their hiring tactics:
- Re-examine your hiring criteria. Identify must-have attributes and skills that can be taught on the job. Develop a strong onboarding program to help new employees get up to speed quickly and learn your company’s systems and processes.
- Amp up active recruitment. Long gone are the days when you can advertise a job opening and wait for skilled professionals to apply. Keep your eyes and ears open. No matter what type of event you are at, be ready to describe your company’s exciting job opportunities.
- Consider remote options. Give potential employees the option to work remotely, if the nature of the job allows for it. This flexibility enables you to tap a wider base of professionals.
- Partner with a recruiter. Staffing professionals can help you quickly find and secure candidates you may not be able to identify on your own. They’ll also handle other aspects of the hiring process such as posting job openings, interviewing applicants, checking references, extending offers, and negotiating compensation.
- Leverage employee referrals. Ask employees if they know people who would be good additions to the team, as your staff members are more likely to refer candidates who they think will be a good fit. Implementing an employee referral program can also be a powerful recruiting tool.
“Because the employment market is so favorable for job seekers right now, many professionals are in a position to negotiate for more robust compensation and benefits,” Jeffers adds. “Many companies are wooing in-demand candidates with higher pay and other benefits. As salary is still king, it’s imperative for companies to benchmark average salaries in their area using tools like salary guides as a template. Businesses looking to land the best hires are offering compelling compensation and benefits packages that include flexible work schedules, remote work options, additional vacation days, and more programs promoting wellness and work-life balance.”
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Hand over control
One of the top reasons workers feel dissatisfaction with their jobs and decide to quit is their manager. If it’s because the boss is bad, there’s not much employers can do to incentivize employees to stay. However, if it’s more an issue of preferring to be one’s own boss, there are still some things companies can do to keep those workers in house and away from the growing ranks of freelancers. For starters, managers can take a step back, which can benefit them, as well.
“By providing staff with more autonomy, leaders gain additional time to focus on strategic planning and other critical initiatives,” notes Jeffers. “Staff who are given greater autonomy have the freedom to decide how and when their work gets accomplished. It allows them to develop management skills earlier in their careers.”
Some examples of simple ways managers can provide employees with greater autonomy include:
- Allowing flexible schedules, which give staff more control over their time and help them meet their priorities outside of the office without compromising their work efforts.
- Offering the option to work remotely. When it makes sense for their position, many workers appreciate the chance to telecommute and feel it makes them more productive. More companies see this as a way to keep overhead costs down, while improving retention and morale.
- Delegating projects that a) give you more time to focus on higher-priority initiatives and b) help employees expand their skills and expertise.
- Assigning employees to leadership positions on project teams. This provides them the opportunity to direct a program and build their leadership skills.
People who thrive on new experiences, have an entrepreneurial spirit, and are committed to ongoing learning tend to be the most successful freelancers, notes Jeffers, but that doesn’t mean they can’t still thrive in-house.
For instance, the top reasons people love their jobs, according to the Harvard Business Review:
- They expressed confidence in gaining new skills (37%);
- They use their strengths more often (33%); and
- They find their work enjoyable (31%).
If employers can offer all three of those consistently, both retention and recruitment will practically take care of themselves.
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