In September of 2021, the U.S. experienced the highest quit rate ever recorded according to governmental surveys. To the dismay of employers, the quit rate continues to hover around the all-time high, and it shows no signs of dropping anytime soon. Companies are trying to adapt to changing times and are struggling to retain great talent. To get ahead of this issue it's essential to understand why people are leaving, and especially what employers can do about it.
There is a multitude of reasons why the national turnover rate is unrelenting. Many are under the assumption that it is simply a supply and demand issue. There are more jobs than people so it's reasonable to conclude that employees are opportunistically seeking higher-paying roles. When you take a closer look, you will find that many companies who are compensating their team at the top end of the market are experiencing similar quit rates as those offering lower compensation. So why are turnover rates so high across the spectrum?
Ted Nardin, Sr. Consultant, Customer Service Advisory, J.D. Power and President, 5th Talent International explains the multiple reasons contributing to this problem:
“Employees exit a company when the stress of staying is higher than the pain of leaving. The abundance of remote work jobs and the ease of switching employers has reduced the pain of leaving. Where prior to the pandemic employees were more likely to stay in a job they didn’t find terribly worthwhile they now react to even moderate stress and anxiety with ‘see ya’. Companies that have challenges managing a sustainable remote work model accelerate stress and anxiety. It’s a recipe for disaster, or at the very least not a recipe for overwhelming success.”
Remote employees overwhelmingly depend on their direct boss as their source of company culture and connectedness. When their leader is a thoughtful, clear, and authentic communicator who cares for their individual experiences, they persevere through the elevated stress. What companies need today is a leadership development program that transforms the mindset and skillset of the front-line leadership team to fully adapt and build a thriving remote work culture.
Final Thoughts
Building connections is becoming ever more important as corporations continue shifting to virtual spaces, making the supervisor a crucial part of your team's success. Keep an eye out for the next post which will give you recommendations to incorporate into your current strategy and help your managers thrive in any challenging environment.