COMPASS CAREER MANAGEMENT SOLUTIONS shares article that informs employers of upcoming and expected events for which employers should prepare. Take time to read and think through what options and decisions are best for you and your company:
Have you seen the headlines? -- Are Employers Ready for the Turnover Tsunami?
These headlines are everywhere. Within the last 10 days, I have seen this specific headline statement on the national nightly news, American Business Journals, newspapers (hardcopy and digital), and HR related magazines.
Are “they” are creating a self-fulfilling prophecy?
I have seen several surveys in recent weeks about employees leaving their jobs. One survey for Eagle Hill Consultancy stated that 25% of employees would be leaving their jobs; another survey touted 52% turnover; and another survey late 2019 indicated a 35% turnover.
The problem with ‘grab your attention headlines’ is the devil is in the detail. The subsequent articles related to the surveys seemed to state the obvious – the higher-level position always have some minimal turnover and will escape the flood leaving employers. The lower level, less experience required, and entry-level position are the ones that will be in flux (but aren’t they always fluxable?).
Of course we know that employee turnover varies significantly by region of the country, size of the firm, type industry, and so on. I just looked at a BLS table (16 - https://www.bls.gov/news.release/jolts.t16.htm) which shows annual turnover in total and by industry and region. It showed the following
|Total Industry, all regions||Turnover *|
*The annual total separations rate is the number of total separations during the entire year as a percent of annual average employment.
According to the BLS, the Tsunami has been occurring for quite a while.
Here is what I suspect will happen – As companies increase their starting rate to $15.00+, employers who do not make the change will see turnover, more so than normal. Since there is a finite number of people to fill jobs, more employers will get even more creative, causing more employees to reconsider current jobs and companies.
Higher level employees will keep an eye open for possibilities, as they always do (or should). I know of two recent scenarios where two upper-level managers interviewed with companies, accepted jobs with relatively significant increases, gave notice, and their current employers matched the offers and then some. This trend will continue especially as wage compression continues as the result of increasing entry level rates and increasing new hire rates.
What is an employer to do?
The standard culprits are generally listed in most retention related articles. Employees who are considering leaving are doing so for the usual reasons—better pay and benefits; improved life/work balance; lack of recognition; corporate culture; company values and a few other categories. Employees stay because of working relationships with managers and peers, work/life balance, and comp. and benefits.
Most of the articles I have seen over the years, and the Human Resource practitioners I know, tell me that the relationship with the manager or supervisor is a critical part of retention strategy, add to that trust, current job descriptions, fair and equitable compensation and benefits; excellent onboarding process for new hires, sprinkle in some mentoring, career pathing, promotional opportunities, solid culture, flexibility and stay/exit interviews and the Tsunami becomes a babbling brook. (sorry, could not escape the water comparison).
What are your thoughts? (Let us know your thoughts. www.compasscareer.com)