Even with record unemployment, employee turnover still tops the list as the biggest hiring pain point for 3 in 10 Canadian decision-makers! A survey conducted by
The Harris Poll between April 21 and May 6, 2020, has indicated that employees claim a ‘better offer’ is their top reason for quitting.
What might cause an employee to start looking in the first place?
We’ve all heard the phrase “employees don’t quit the company, they quit their boss”. While this still holds weight, other factors appear to be in play.
Adapting to Health Guidelines
In response to civil, provincial, and federal health guidelines, employers have had to adapt to survive – many just to keep the doors open. These adaptations may include, among many others:
- Hiring freeze/furloughed staff resulting in insufficient coverage and increased responsibility by remaining staff
- Contingency plans that affect ‘normal’ communication channels
- Additional expenses to incorporate health guideline recommendations
- Imposing mandatory wearing of masks in the workplace
- Management and staff working remotely
Compounding Discontent
Of the respondents with extended job vacancies, 81% indicated these vacancies have negatively impacted their company. The impacts outlined were:
- Work not getting done (28%)
- Less motivated employees (27%)
- Lower employee morale due to overwork (25%)
- Loss in revenue (25%)
- Delivery delays (22%)
The results of health guideline adaptations, the negative effects of extended job vacancies, and many other factors have compounded preceding discontent; impacting internal employee restlessness and, ultimately, external client dissatisfaction. That, and the ‘freedom’ many employees felt working from home for a few months has possibly changed mindsets and priorities. Not to mention the unavailability of childcare and schooling on family finances and sanity!
Income Increased Due to CERB
While not applicable to all, some employees experienced more income through CERB than through their employment. Once they experienced more disposable income, it can be challenging to retain staff that have a taste of what ‘more pay’ might mean for their lifestyle.
Survey List of Employee Reasons for Leaving
According to the above-mentioned survey, the top reasons employees leave are:
- Better Offer from Another Employer (32%)
- Lack of Advancement/Opportunity (21%)
- Work Hours Are Not Suitable (20%)
- Not a Good Fit with Company Culture (17%)
- Low pay (16%)
It is interesting to note that a ‘better offer’ was 1/3 of the reasons given by respondents but ‘better offer’ includes all the subsequent reasons. Many employers think that financial gain is the only reason someone leaves but a better offer is attributed to:
- Better hours
- Improved Corporate Culture
- Opportunity for Advancement (immediate or future)
- Better Pay
- Generous Benefits
- All of the Above
Retention Focus
If employee turnover is one of the biggest hiring pain points, then employee retention strategies should be the response. While each employee has a different reason for leaving since salary/wage is not top of the list, some recommendations from the survey include:
- Ongoing training and development
- Setting clear expectations
- Flextime
- Bonuses
- Potential for Advancement
- Focus on creating/building a healthy company culture
Minimize this hiring pain point by focussing on retention. Focus on having the
right person in the right job using assessments,
building a quality company culture, using the
team fit tools to position staff for success, and changing the mindset from orientation to
onboarding – welcome new people! We invite you to connect with us for more information – 1.306.931.7121
