The Ledger No. 36: Employee Attrition

Welcome to The Ledger where we sum up the latest finance and accounting news and trends for you. On this week’s entry, we’re diving into the topic of how to reduce employee attrition and what that means for retaining your current workers. Read on explore how to improve employee retention, why retention is contingent upon company culture, how toxic culture is the driving force behind the Great Resignation and how to encourage your team to stay in an employee-dominated market.

Improving Employee Retention in the Midst of a Pandemic - Learn How to Reduce Attrition

If you thought retaining employees during pre-Covid times was challenging, think again. The past two years has companies questioning business priorities and many are laying all their cards on the table to win the war on talent. In doing so, organizations are offering high-quality perks and employee engagement tactics that attract top candidates. But are workers leaving their current places of work for a higher salary or something else? A LinkedIn Research survey found that 63 percent of professionals picking a new job chose work-life balance as a top priority. So how can employers move away from the Great Resignation to the Great Retainment? Dave Carhart, VP of People at Lattice, touches on this subject: “We’re still at the beginning of an ongoing wave… the pressure in the market is universal.”

Here are a few lessons to put into practice:

• Prioritize the first 90 days. In a new hire’s first few months, reinforce your mission, vision and values. Reevaluate your onboarding process and rework if necessary.

• Reconsider compensation. Whatever the market is paying for a role on your team, pay your high performers above it.

• Reconsider your benefit offerings. Solicit input from your staff and team about what investments they value the most.

• Demonstrate growth opportunities. 47 percent of those surveyed said they feel their careers have stalled since early 2020.

• Nurture your brand’s reputation. Define your company’s employee value proposition and then amplify that brand. Ask yourself, “Why is this company a great place to work?”

To explore how to retain your employees in a world full of change and uncertainty, read the full article on Technical.ly.

Retention is Contingent Upon Company Culture

You may have thought you had workplace culture down pat – catered lunches, open workspaces, unlimited snacks, etc., but a paramount shift has occurred, and employees are demanding more. The truth is, the pandemic has changed worker attitudes about where they work and how they work. The trend that a positive company culture is key to boosting a business’s bottom line during unprecedented times is not only American. In fact, the global average of candidates who consider company culture a top priority when picking a job is 40 percent. And thanks to the Great Resignation, organizations are having to take a different approach instead of clinging to the older ways of hiring. So how can employers do just that? By getting leaders to talk about culture, being authentic and by investing in onboarding initiatives.

To understand how employee demands are shaping company culture, head over to BenefitsPro.com to view the full article.

Toxic Culture: The Driving Force Behind the Great Resignation - Solve These Problems to Reduce Employee Attrition

If you’re a leader, you may be asking yourself, “Why are my employees leaving?” It’s a question that begs companies to take a self-inventory on their current business practices. But it’s not just the accounting and finance industry that’s being affected by these changes – every industry across the board is feeling the effects of the pandemic. Data from Revelio Labs found that attrition rates ranged from 2 percent to 30 percent across companies. This same data also showed how to predict employee turnover during the Great Resignation. Here are the results:

• Toxic corporate culture. The leading elements that contribute to toxic cultures include workers feeling disrespected and unethical behavior.

• Job insecurity and reorganization. When a company is struggling, employees are more likely to jump ship in search of more job security and professional opportunities.

• High levels of innovation. Staying at company on the verge of a huge breakthrough typically means putting in longer hours, working at a faster pace and enduring more stress.

• Failure to recognize performance. Companies that fail to recognize and reward strong performers have higher rates of attrition.

• Poor response to Covid-19. A company’s response to the pandemic is a good indicator on whether or not an employee chooses to stay.

So how can organizations boost retention?

• Provide opportunities for lateral job moves.

• Sponsor corporate social events.

• Offer remote work options.

• Make schedules more predictable for front-line employees.

Leaders must understand and address the elements of their culture that are causing employees to leave. To dive deeper into this topic, check out the full article on SloanReview.mit.edu.

Encouraging Your Workers to Stay in an Employee-Dominated Market

While many managers are focusing all their efforts on figuring out why their employees are leaving, few are actually paying attention to the workers who have remained in the same roles since before the pandemic even began. According to Fredrick Lee, Chief Security Officer at Gusto, “People are making choices to go to companies that are recognizing them as humans.” But as leaders rush to recruit new team members, they need keep their current workers top of mind – this ensures that they feel sufficiently valued. Here are a few steps you can take to guarantee a low turnover rate:

• Be aware of your impact. Leaders set the tone for their organization.

• Keep an eye toward potential. Now’s a good time to listen to your employees.

• Approach departing workers with grace. How do you and others in your company treat people who leave?

• Don’t skimp on respect and attention. Think of your employees like customers. Put thoughtful attention into retaining them.

The impact of expressing your appreciation for your current employees is more than a short-term tactic – if done correctly, it can help retain workers for the long haul. To learn more about how to fight and reduce employee attrition by changing how your treat your employees who stay, read the full article on Fortune.com.