Nearly everyone knows of someone who has left their job in the past year or is actively considering switching jobs. Every labor category is experiencing volatility, so employers across industries are being challenged to think strategically about how their organizations can successfully navigate The Great Resignation.
In September 2021, data from the U.S. Bureau of Labor Statistics (BLS) showed 4.4 million Americans quit their jobs. That figure alone would be striking, but September was just a single month in a sustained period characterized by mass fluctuations in the workforce.
Recognizing the Challenges Employers Face
Data from the Society for Human Resource Management (SHRM) illustrates the unprecedented impact of The Great Resignation.
Chiefly, nearly half of U.S. executives say turnover at their operations has increased, and many executives say filling positions is taking longer than before the COVID-19 pandemic began. Yet open positions are plentiful; BLS data shows 7.7 million Americans were unemployed in September 2021, but 10.4 million positions were open at that time.
Why Employees Are Seeking New Opportunities
Understanding the reasons workers are leaving is critical. SHRM’s data shows 53% of workers leave for better compensation, 42% are seeking a better work/life balance. Roughly 1 out of 3 employees is looking for better benefits or better career advancement opportunities, according to SHRM’s data.
Compounding matters is the fact that many employees’ stated reasons for leaving a position are not what executives expect. SHRM polled executives on why they believed employees were leaving, and 28% of executives believed employees left to secure better benefits or better career advancement opportunities. This discrepancy suggests some employers may not truly understand what motivates employees to stay in their positions.
How Organizations Are Responding to Labor Shifts
As The Great Resignation leads to more open positions, one out of three businesses has implemented new or additional employee referral bonuses to attract new talent. Nearly 60% of HR professionals surveyed say their organizations are offering higher starting salaries than they did last year. Of these organizations, more than half are increasing base salaries by 1% to 5%. Notably, more than 9 out of 10 employers plan to give pay increases in 2022, SHRM says.
How Teams Can Capitalize on Change
SHRM data indicates that even as employers take action to retain or attract employees, they may still face an uphill battle. SHRM suggests employers candidly assess how their organizations can strengthen their teams to adapt to shifting labor conditions successfully.
1. Emphasize Stability
Stability is one of the core features of resilient teams. Teams that clearly know who they are, the mission they serve, and why they do what they do are more able to adapt to shifting labor conditions than unstable, unfocused teams.
SHRM suggests that to add stability to teams, it’s important for managers to regularly communicate their vision for the team and reiterate the team’s mission statement often. It’s also important to be transparent and fair in decision-making to increase trust among team members.
2. Foster Connections
Every member of every team will deal with feelings of disengagement. But taking steps to strengthen connections between team members can be a long-term investment in teamwide resilience.
One of the key ways team members can grow connections is by holding regular team meetings to discuss the latest challenges or achievements. Meetings that are open and honest will encourage every team member to engage fully with their teammates, recognizing the ways they can alleviate pressure on teammates or drive efficiencies among their co-workers.
3. Stay Agile
According to SHRM, resilient teams make adaptability a cornerstone of their operations. Agile teams are resilient because they can function as a cohesive, though multi-talented, unit. Even in hectic moments, agile teams never lose sight of their purpose or get distracted by trivial information.
By hearing the team’s mission statement articulated often, agile teams are able to more quickly make decisions based on precedent, enabling fast operations and continuity of service.
Knowledge Services Builds Resilient Teams
With nearly 30 years of workforce management experience and more than a decade of direct Managed Service Provider (MSP) experience, Knowledge Services has seen firsthand the clear power of building resilient teams. Even in times of labor market shifts, Knowledge Services aims to create stable, connected, and agile teams for our government clients.
Contact Knowledge Services today to discover how our array of workforce management solutions can enhance your organization’s operations.
