Employee turnover

scary employee retention stats - female employee holding head down at desk

Scary Employee Retention Stats 2021

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August 17 @ 8:57 pm CDT

The costumes have been put away. The haunted houses have closed. Attention has shifted from watching horror movies to watching for Black Friday deals. Halloween has ended, but there’s still much to fear. Since 2013, our firm has celebrated Halloween with its Scary Stats campaign, reporting on the scariest workforce stats of the year. This year was no exception — but this year we’re not in a rush to turn our attention elsewhere. Why? Because the frightening fact is, in the eight years since we started publishing Scary Stats, there’s been no improvement. And this year, scary stats took on a whole new meaning when a record-breaking 4.3 million people quit their jobs within a 30-day time span, and 10.4 million job openings remained unfilled. Even before we started publishing Scary Stats, we knew this moment was coming. In the year 2000, Gallup reported employee disengagement hit an all-time high. Companies started throwing money at research and perks and created new office spaces in an attempt to improve employee engagement, yet the stat remained unchanged. For 21 years, we raised a restless, unhappy workforce. Now, our creation is a full-fledged adult. And like a negligent parent, we’re reflecting on the last two decades with awe and regret, wondering what we created and kicking ourselves for not paying closer attention. These two stats help to tell the story behind the making of this frightful mess commonly referred to as the Great Resignation: The difference between executive and median employee pay continues to increase. CEOs now make 299 times more than the average worker. In 1965, executive pay was 24 times worker pay. In 2017, it was 275 times. Flexibility emerged as a workplace value when Millennials started entering the workforce in 2000. Consistently, 92% of this generation has said they expect employers to provide flexible work environments. In 2021, Deloitte reported 82% of companies now see flexible work arrangements as critical to employee retention, but only 47%…

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Leader holding a paycheck out.

The Price is Right: Why Higher Salaries Won’t Single-Handedly Solve the Workforce Crisis

August 17 @ 8:57 pm CDT

Six years ago, Dan Price, the founder and CEO of Gravity Payments, set off a media firestorm when he raised the firm’s minimum salary from $35,000 to $70,000 and slashed his own $1 million salary down to $70,000. He was hailed a hero by some and harshly criticized by others. Many analysts predicted the company would soon be bankrupt. But that has not happened; instead, the company is thriving. Six years later, revenue has tripled, the number of employees has doubled, the turnover rate was cut in half, and both the starting salary and CEO salary remain at $70,000. Here and now, wage increases are top of mind as employee turnover is skyrocketing and prospective employees are being wooed with higher starting salaries and sign-on bonuses. Undoubtedly, pay raises are needed. The wage gap is significant. According to the Economic Policy Institute, average CEO compensation is 320 times more than the salaries of their typical workers. (Six years ago, it was 265 times.) But make no mistake about it: money can’t buy love. For 20 years, Gallup has reported 70% of the workforce is disengaged, and companies have thrown money at the problem investing more than ever in perks and bonuses to try to reverse the decline. Yet, employee engagement hasn’t improved. At all. If money isn’t having the desired effect, what will? Trust. The organizations thriving and successfully engaging employees are trustworthy. Specifically, employees believe their leaders are credible, honest, and fair, and that their leaders respect them. Some people will read Price’s story and only see dollar signs. Those people are missing it. Employee engagement can’t be bought. While fans and critics alike marvel at Price’s pay structure, that’s only half the story. His team has been referred to as fiercely loyal which can only come from a trusting, people-first workplace culture. Here’s how one employee described Gravity Payment’s leadership during the pandemic:   “They didn’t do any layoffs. They didn’t raise merchant fees. They let the…

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Kick the Quit: Why Work Isn’t Working and What to Do About It

August 17 @ 8:57 pm CDT

The Great Resignation. The Talent Tsunami. Whatever you choose to call it, it’s the speck of sand in our eyes – it stings, it’s anxiety-inducing, and it’s become impossible to ignore. We knew this moment was coming. For decades, government leaders and demographers warned organizations to plan for the Baby Boomer retirement wave. For the past 20 years, Gallup has reported high, unyielding rates of employee disengagement. Then the turnover rate among young professionals hit a historic high and retaining talent was cited as the top management challenge globally. Work hasn’t been working for a while now. The pandemic made an already miserable and fleeting workforce rethink their career and life trajectories and take action. As a result, a record-breaking 11.5 million workers quitting their jobs within a three-month time span – April-June 2021. (U.S. Dept of Labor) This is just the tip of the iceberg. Studies indicate several thousand more workers are likely to jump ship within the next 3-6 months. It took time to get into this mess, and it’s going to take time to get ourselves out of it. Best to start working on work immediately.   To engage people is to understand them, and that can only come from time spent in a relationship with them   As with any crisis, addressing the situation is best achieved once one understands what is causing it. I’ve spent the past two decades researching workforce engagement trends and it all comes down to three undeniable truths:   We inherited institutions designed for the 20thcentury, which are unable to cope with the mounting pressures of constant change and disruption in the 21st century. When leaders fear change and struggle to be open to new ideas, technologies, or people, employees immediately disengage. Appreciation, respect, care, trust, and a sense of teamwork and belonging are considerably more influential in an employee’s decision to engage than compensation, benefits, or workplace perks.   Employees are more unhappy and more likely to leave because many leaders and…

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Why They Quit: How To Retain Young Talent

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August 17 @ 8:57 pm CDT

As vaccines are being distributed, there is hope the worst of the pandemic is nearing an end. But if research is any indication, another kind of crisis may just be heating up. As SHRM defines it, a “turnover tsunami” is brewing, with more than half of employees surveyed planning to look for a new job this year. Employers were experiencing high rates of turnover prior to the pandemic. In fact, voluntary turnover had been steadily rising since 2010, and was cited as a chief global concern by both the UN and World Economic Forum. When the pandemic hit, quit rates reached their lowest level in nine years – and now they’re bouncing back. Just this week, I’ve heard from three executives lamenting the loss of young talent. The fact remains that professionals under the age of 39 account for more than half of all voluntary separations. Why? Increased employee turnover is the outcome of a shift in workforce needs and values, and it’s a shift that is here to stay. This is a topic I’ve researched a great detail and the answer is quite complex. In brief, here are two reasons why young professionals are three times more likely than other generations to quit: Inclusion We’re observing an ever-widening gap between twentieth century managed organizations and twenty-first century raised workers. Young professionals don’t understand the management processes and hierarchies common throughout the past century. These generations have only known a world powered by innovation, collaboration, globalization, instant gratification, knowledge, acceptance, and access. They struggle to comprehend why decisions can’t be made on the fly, why they can’t have a seat at the decision-making table, and why it’s always been done ‘that way.’ Stability Millennials came of age during the Great Recession-the worst economic decline our country had experienced in 70 years. Gen Z has come of age during the most disruptive         decade in history. These experiences have shaped the career trajectories of young professionals in more…

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