Tips for retaining staff during the Great Resignation

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The true cost of hiring new staff

It’s expensive to hire new people, and it takes time to find the right people – if you’re lucky.

The CIPD estimates the average cost of filling a vacancy, including labour costs, is £6,125, rising to £19,000 for a manager role. Recruitment agencies can charge 20-30% of the salary.

The financial cost of losing staff

A high staff turnover can also prove expensive. Research by Oxford Economics and Unum claims the average cost of turnover per employee (earning £25,000 a year or more) is £30,614.

So, if you replace three employees in one year, the cost is close to £92,000.

Those costs include the following:

  • Hiring costs
  • Onboarding and training
  • Loss of productivity

Staff retention has become harder following Covid-19, which prompted much-hyped trends toward the so-called Great Resignation and Quiet quitting.

  • Almost a third (32%) said they’d seen negative impacts on employee wellbeing.
  • 31% had seen team burnout
  • 20% said it had led to unreasonable employee workloads.

Why are people leaving their jobs in the Great Resignation?

People are leaving their jobs for a variety of reasons. Covid-19 has undoubtedly played its part. The lockdowns which resulted from the pandemic meant companies had no choice but to implement home working.

Microsoft also found that over 70 per cent of workers want flexible remote work options to continue, while over 65 per cent are craving more in-person time with their teams.

Tips for retaining staff during the Great Resignation

Keeping staff is financially beneficial, and it’s not just about avoiding turnover costs. Indeed’s report notes: “Employers with a high level of employee loyalty can provide a better customer experience, retain experienced talent and be more productive. All these advantages boost growth and generate a long-term increase in revenue.”

Below we offer top tips for retaining people in the workplace

However, you don’t need to lose older and more experienced staff. Instead, you can make reasonable adjustments, which can account for changing needs such as long-term conditions, which may increase with age, supporting people with caring responsibilities, and encouraging mentoring between older and younger staff members.

2. Embrace diversity and inclusion in the workplace

Government statistics show that disabled workers move out of the workforce at nearly twice the rate (8.8%) of non-disabled workers. Workless disabled people move into work at almost one-third of the rate of workless non-disabled people.

Creating an inclusive workplace will benefit everyone and can boost your bottom line. For example, a survey by Glassdoor found that employee turnover rates within businesses with rich company cultures are 13.9%, compared to 48.4% within organisations with poor company cultures.

3. Consider flexible working options

One main reason people quit is that they don’t want to return to the workplace. 59% of businesses attribute employee dissatisfaction with the organisation’s flexible or hybrid working policy as one of the main reasons for resignations over the last year.

Offering flexible working is a great way to retain staff. However, you mustn’t overlook the need to make reasonable adjustments for the office, home and a flexible approach.

4. Focus on your employees’ mental health and well-being

Burnout is another reason why people are quitting. Microsoft’s survey found that:

  • 37% of the global workforce thinks companies ask too much of them
  • One in five think employers don’t care about their work-life balance
  • 54% feel overworked, and 39% feel exhausted

Others have realised they don’t like their jobs. Without the camaraderie of working together and doing their roles at home, there’s arguably an increased focus on the role, but there’s a risk they’ll lose connection.

As a manager, ClearTalents can support you in having an open conversation with employees, which includes exploring their mental well-being. According to the ONS, adults in their 50s are more likely to give stress or mental health as a reason for leaving work.

Listening to feedback from your team and acting on it is a fantastic way to retain staff.

  • Contact us for more information about ClearTalents.

5. Make reasonable adjustments at work