With record high turnover continuing in 2022, many employers are digging deep for creative approaches to retain their skilled workers and fill open positions.
For many workers and employers, the Great Resignation has turned into the Great Awakening, explained Michelle McLaughlin White, VP of Client Management & Field Development at Colonial Life.
"Employees are reevaluating their life and priorities," said McLaughlin White. "And as a result, their work needs have shifted, forcing employers to try retention strategies they wouldn't have considered a couple years ago. Competition for skilled labor is so strong that if companies don't adapt they will get left behind."
A recent SHRM report addressed why workers were quitting their jobs last year. It showed that three of the top reasons were the same today as before the pandemic: better compensation, better work/life balance and better benefits.
But what has changed in the COVID era — revealed two surprising reasons for workers quitting. The SHRM survey showed that 21% of workers quit because of lack of empathy by their leadership and 21% quit because of workplace culture.1 This is likely because of "Covid Clarity," explained SHRM researcher, Ragan Decker, PhD., referring to the concept of workers thinking about what they want in a job and in their lives.
What these results show is that people still care about competitive compensation and benefits packages. But for many workers these are the basics, not the differentiators. The last few years have caused many workers to reevaluate their lives and reprioritize. The challenge for employers is they also now need to create a work environment where people want to work, and one that meets the work-life balance people seek, explained McLaughlin White.
"The power has flipped," said McLaughlin White. "Workers have more employment options today. They care a lot more about how their work makes them feel. And that's about culture. Do they feel valued? Do they feel like their work has an impact? Do they believe they work for a company they can be proud of?"
Changing workplace culture isn't easy.
Given the value of a healthy workplace culture in retention, organizations should be thinking about whether they are fostering a sense of belonging that is inclusive and diverse throughout the organization from leadership to the frontline workers. And if not, how to make changes that would foster a sense of belonging.
Improving workplace culture isn't something that can happen quickly. It can take several months to years to feel real change. But a company can take steps to make quick changes that workers can see with open and honest communication, explained McLaughlin White.
"You can actually talk about where you are, where you want to be and how you are going to get there," said McLaughlin White. "Follow that with meaningful action and you start to see the culture shifting slowly. And with that, you start to build trust and respect among your workers."
"When workers feel a strong sense of belonging at their organization, they are less likely to leave," said Decker, referring to the SHRM survey.
Digging deep for different approaches to retention
While unhealthy workplace culture addresses some issues with retention, it isn't the answer or the full story for all organizations experiencing record high turnover. Here are five more creative approaches to improve retention and attract new workers.
