TURNOVER IS COMING, ARE YOU READY?
by Matt Thomas
Prudential’s latest Pulse of the American Worker survey, conducted in March has some interesting insight on important shifts in the job market coming our way. They found that 1 out of 4 workers (26%) plan on looking for a new job once the pandemic is behind us. The percentage is even higher for millennials (now hitting 40 years old by the way) at 34%. This reshuffling of the deck is going to be especially hard on employers who aren’t ready to replace highly skilled talent.
They found that 1 out of 4 workers (26%) plan on looking for a new job once the pandemic is behind us. The percentage is even higher for millennials (now hitting 40 years old by the way) at 34%.
Why the big shift? For some, the pandemic has forced them to reassess their skill set and future career goals. For others, working remotely for nearly a year has left them feeling disconnected from their employers as businesses have struggled to keep the culture intact. Regardless of the reason, and even if it turns out to be 1 out of 5 or 1 out of 8, these numbers are significant.
I am a purveyor of pithy quotes and one of my favorites is from Richard Branson that you have no doubt heard along the way:
“Train people well enough so they can leave, treat them well enough so they don’t want to.”
The bottom line is if you treat your people well and compensation is competitive you will likely never have significant turnover. It really is that simple. Our clients who have struggled with high turnover either are haggling over $1 an hour raises for their labor, so focused on high production that they grind their people into the ground, or both. Sometimes, the senior leaders are frankly just bad people. But those who pay well and treat their employees with dignity and respect sure don’t seem to have the same challenges. It isn’t rocket science.
In unique times such as these people will leave. It is an inevitability. In order to prepare for turnover or unexpected growth for that matter, we generally recommend two things:
Create a flexible entry-level position in your organization.
Not an internship, but an actual decent paying job that could lead to a plethora of other opportunities in your business depending on need and the employee’s skill set. This way you can make low risk hires and give people a chance to move up in the company, effectively creating a farm system inside your organization.
Never stop interviewing candidates.
Businesses should always be hiring, even when there isn’t an obvious fit. Unfortunately most wait until they are behind the eight ball to list an opening and by then they are just doing the good ole “post and pray”. Your interview process should be flexible enough that you can adapt it to fit the needs of your organization and the urgency of the candidate. Rarely do people make good hires in a pinch.
Turnover is a-coming. Are you ready? Go get ‘em.