Factors of Employee Turnover
As the economy continues its slow return to “normal,” employers need to consider several factors that may contribute to a rise in their employee turnover, including exhaustion, pay, disillusionment, delayed retirement and the return to home of formerly at-home parents. The relative impact of each will be determined by the actions taken by individual employer.
Exhaustion. Some companies took advantage of the economy to preemptively cut labor costs by reducing staff more dramatically than business required, leaving remaining employees with a significantly greater workload than before. Although there’s no promise a new company will respect an employee’s need for a break and a manageable workload, the fact that an employer has already proven to have little concern for an employee’s well-being will quickly drive that employee away once new opportunities arise.
Pay and disillusionment. Citing financial woes, companies around the country froze pay rates and halted promotions. To be fair, these actions kept companies afloat in many cases. However, it was the rare organization that redoubled its efforts to ensure employees continued to be recognized for their work.
During flush times, it’s easy for a company to be generous in pay and appreciation. In tough times, management’s true colors show. Those that remained positive and supportive and who tackled challenges creatively with an eye on their employees’ needs and fears will reap rewards in the coming months. The others likely will face increased turnover.
Retirement. In the years leading up to the recession, fears abounded regarding an impending worker and management shortage. Many tenured employees were expected to retire shortly with too few young people waiting in the wings to take over. Those worries were put on hold when the economy slowed, because these folks could not retire as planned.
With stocks creeping higher again, as well as improving job prospects for family members they’ve been supporting, individuals who delayed leaving work will again start to plan to retire soon, leaving gaps in staff as well as in knowledge.
Return-to-home parents. Many at-home moms and dads returned to the workforce as their spouses and partners were laid off or forced to accept reduced hours or salaries. While some of these newly re-engaged employees may remain in the workforce, in many cases, as the original working spouse or partner becomes able to support the family again, the initial at-home parent may return to his or her preferred place of work: the home.
The coming return to a solid economy is positive, absolutely. The unemployment rate will start to decline as jobs become available. Those who become employed will feel more secure in spending more money, creating greater demand for products and services, prompting companies to produce more. The increased work volume will require more staff, driving up job openings, creating more employment opportunities and more security for those who are employed. It’s a positive process. And yet companies that have taken advantage of their employees over the past few years should be concerned. Their challenges, in the form of turnover, are just beginning.
Megan Stanish, director of client services for Michaels Wilder, has been involved in recruiting and recruitment marketing since 1994. Her professional experience includes client support, operations and management. She currently provides guidance on recruiting and employment trends, recruitment marketing, and interactive tools and social media. Michaels Wilder is a marketing and talent-management services company delivering Internet, mobile, print and broadcast advertising solutions. For more information, call 800.423.6468; visit www.michaelswilder.com .