Employee Turnover: The Fundamental Long-Term Shift In The Future of Work

Updated: Apr 25

Employee turnover is not a fad in today's environment. Instead, employers are seeing a significant shift from the norm to something that has become the norm- high employee turnover.

New job seekers choose to forego their employment to find new opportunities for better-paying wages, career advancement, and quality of life.

Employers will need to adjust to this increased new normal by identifying ways to formally address employee retention and developing meaningful strategies to retain employees while focusing on company culture, job satisfaction, career advancement, and pathways opportunities in the job market.

Employers realize what they thought was a fad is now the new normal, so we will discuss what this future of work shift is and what employment retention strategies companies can deploy to boost employee retention through the roll-out of employee engagement programs that focus on job satisfaction, employee morale, and employee development.

The fundamental shift in the future of work

Companies recognize the high level of employee turnover and the rising costs related to employee turnover. However, there is an ever-growing concern that companies will face significant and crippling consequences due to this major shift if this trend continues.

This includes reducing efficiency and increased operational costs, such as recruitment fees, benefits, training, mentoring, and onboarding costs. Companies must understand the significance of this trend before these changes are too far along to turn around.

Companies must align their strategies with the growing new normal of a more engaged and well-motivated workforce.

Employee turnover is not a fad

Employee turnover is not a fad in today's environment. Instead, employers are seeing a significant shift from the norm to something that has become the norm- high employee turnover.

As a result, companies are discovering that employee turnover and overall employee engagement are not only the cost of doing business. It's a strategic imperative. As a result, enterprises are now experimenting with tools and strategies to measure employee engagement and understand how to improve their culture.

Taking employee satisfaction seriously cannot be just lip service, and we must view even this in its proper context. The key to employee satisfaction and happiness is engagement and a positive employee experience that leads to better business results.

Why do employees leave?

There are many reasons that employees leave their jobs, but among the top reasons cited are:

  • Employees quit due to job dissatisfaction or dissatisfaction with company culture. Employee turnover has reached epidemic proportions, representing the biggest problem facing employers. Half of the employees who quit said they left because they didn't enjoy their work.

  • Employees leave because they can't meet employer's expectations. According to popular belief, if employees feel capable of accomplishing their job requirements, they will work more efficiently. However, employees are not always aware of what these expectations are.

Furthermore, workplace issues such as employee dissatisfaction, unrealistic expectations, training, and budgeting may contribute to poor employee retention.

The new normal of employee turnover

Employee turnover

According to CareerBuilder.com, 65 percent of job seekers cite a lack of company recognition as one of the main reasons for job searches. This lack of company recognition has, in turn, increased employee turnover.

The demographics of the workforce are changing as baby boomers retire, however this creates new opportunities for employers to develop and embrace new workforce talent strategies to attract new talent.

Companies now have an opportunity to take a proactive approach to retention by addressing the shift in job seekers to a new norm of unemployment. For companies to keep pace with this change, they must be prepared to recruit and retain the best talent possible through traditional methods such as job fairs, virtual events, social media, email marketing, employee referrals, and internal reviews.

Why employers see the increase in employee turnover

Job seekers now have a greater selection of occupations to pick from than they did a few years ago when they were limited to traditional or lower-wage employment.

Employees are also noticing that the traditional lower-wage job is not a good career choice anymore. People want to be challenged, feel valued, increase their quality of life. Job seekers can achieve this by acquiring a higher-paying job with more prospects for growth opportunities.

When employees have to face competition for a job in that lower-wage category or for an opportunity at a higher wage position, they would rather look outside of their current employer for an opportunity that offers them a bigger future.

That being said, employers need to re-think their job retention strategies. Companies that understand the need to shift their employee engagement strategies have taken steps to address the issue by making their employees a priority.

What employers can do to address this new normal

The first step in addressing the new normal is to get familiar with the dynamics that are driving and leading to the increased employee turnover in the workforce. There is an inevitable state of flux that exists for any company that hires in today's global economy.

The global marketplace is changing the game- where work is done, how work is done, the digitalization of work, and a move towards flexibility. The employee turnover rate is going to be affected because of these dynamics, so the employer needs to seek a way to make retention strategies easy to implement.

One of the key steps to addressing turnover is to conduct a workforce plan. Start with setting a strategic direction. Analyze your workforce and evaluate where the gaps are and where the potential is to capitalize. Then develop an action plan, put it into action, and monitor, evaluate, and adapt as required.

Employee retention strategies

Have you ever witnessed someone you really like suddenly leaving your company?

Maybe someone you've worked with for years leaves suddenly for another opportunity, or perhaps your company goes through a restructuring. How do you maintain your competitive edge and that employee loyalty?

Organizations across the United States (U.S.) are experiencing a massive shift in their workforce. According to the U.S. Department of Labor, Bureau of Labor Statistics August Job Labor and Turn Over report trends, the number of quits (a measure of workers' willingness or ability to leave jobs) increased to 4.3 million in August 2021, which was a gain of 242, 000 or an increased high of 2.9 percent.

Businesses that are focused on retaining talent and increasing employee engagement typically focus on developing employment retention strategies to recruit, onboard, retain, and engage employees. Employers are identifying ways to increase engagement, satisfaction, and loyalty through the development of employee retention strategies.

So, what is the definition of employee retention, and why should organizations implement these strategies?

Employee retention is the organizational goal of keeping talented employees and reducing turnover by fostering a positive work atmosphere. A company that shows its employees appreciation, competitive pay, and a healthy work-life balance are all key.

The best employment retention strategies: What is working?

Successful employee retention strategies encourage employees to keep motivated and focused.

To foster engagement among old and new employees or to provide an environment that meets the needs of current employees, companies ought to consider implementing employee engagement programs, such as perks, flexible work schedules, and benefits. These programs are transforming how companies attract, engage, and retain staff.

The importance of employee retention

Creating a positive work environment is essential to a happy and engaged employee. Engagement improves the workforce's productivity, as workers are more likely to perform at their best when their time and energy are valued.

However, employee engagement can decrease if an organization or workplace isn't an ideal work environment. Companies should strive to ensure that their employee's work environment is positive and enjoyable.

Other strategies for engaged employees, such as productivity-boosting perks, flexible work options, and benefits, can increase employee engagement and overall performance. In addition, a disengaged workforce could affect the bottom line of the company.

Increasing employee retention through perks

There are many ways to incentivize your employees and new hires to remain loyal to the organization. Having fun at work is the best way to attract and retain your best people.

Consider offering your employees a healthy and fun environment that encourages collaboration and communication, which helps foster relationships with team members and is the foundation for building a strong company culture.

Research also shows that people are more likely to stay loyal to an organization when they're given financial incentives. Having a sense of financial security and knowing that their jobs are secure is an attractive feature for new talent.

Creating a positive environment

Many employers are committing to creating workplaces that promote wellbeing by focusing on creating work environments that help employees take care of themselves so they can focus better, perform better, and feel better.

Workplace environments that promote emotional safety, work/life balance, and healthy lifestyle options are environments that enable employees to perform at their best.

Furthermore, we are observing an uptick in company cultures that promote employees taking care of their own health and wellbeing through flexible work hours, non-smoking policies, clean and healthy break areas, daily exercise, and financial assistance to help employees pursue wellness-related activities. The most successful positive work environment strategies emphasize wellbeing, increase communication, and reduce stress.

Creating a culture of engagement

A successful employee retention strategy incorporates ways to focus on the employee's emotional and social needs.

Employees are showing their dissatisfaction with a negative work environment, and only 25% of employees engage with their company on a regular basis.

Companies realize that investing in the social and emotional wellbeing of their employees is a part of the sustainability of their company, so they are making a big push to improve that at all levels.

Organizations that create a culture of engagement offer opportunities for employees to flourish, leading to satisfying working experiences. For example, Glassdoor reported that the top place to work is Alliant Credit Union.

The company is known for its culture of engagement through its Culture of Excellence initiatives, which have helped to retain thousands of employees in a short period of time. Through this initiative, workers are motivated and engaged to be the best they can be.

Companies are seeing more and more proof that engaging employees drives both retention and growth in the company. Research by Cisco and Hill Holliday shows that companies with high engagement have higher business performance.

Creating a culture of engagement is the first step of introducing a concept of employee engagement as the baseline for building a culture of retention that focuses on long-term relationships.

Healthy work-life balance

There has been a big change in what companies view as work-life balance, with millennials and Gen Z outgrowing this antiquated notion of "divide and conquer."

Employee engagement and wellbeing directly contribute to company productivity.

Employers who invest in employee wellness initiatives, such as health benefits, telehealth, and onsite counselors, will see their employees' motivation and health improve.

Health and wellness are becoming the new normal, and achieving a healthy work-life balance is even more critical for employees today. Research from EchoSigning found that: When it comes to work-life balance, not only is it important, it's a competitive advantage. Of the respondents who took the survey, 41% stated that their work-life balance is a competitive advantage, and 75% cite company culture as a