While most HR professionals agree that the Great Resignation is behind us, retaining employees will continue to challenge organizations in 2024 and beyond.
According to iHire’s recently 2023 Talent Retention Report, for which we surveyed over 4,100 U.S. workers and employers, nearly 2 in 5 employees (38.9%) expect to quit their jobs within the next year. At the same time, 60.9% of employers believe turnover levels at their organizations will either increase or stay the same in the coming months.
Whether you’re anticipating an uptick in recruiting or bracing for hiring freezes and layoffs, preventing voluntary turnover should be on your HR roadmap for 2024. To help you prepare to keep talent aboard, consider these five trends uncovered by our survey:
1.Workplace toxicity is driving more quits than unsatisfactory pay. 35.7% of employees who left a job in the past year did so due to a toxic or negative work environment, as workplace toxicity was the No. 1 reason for calling it quits with an employer. For perspective, 20.3% of workers left due to unsatisfactory pay – the No. 7 reason cited for quitting. Further, a positive work environment topped the list of reasons (aside from pay) employees choose to stay with their employer.
In 2024, fostering a people-first workplace with an exemplary employee experience will be critical to talent retention. Monetary compensation can only go so far in keeping an employee around; once the initial excitement of receiving a raise or a bonus wears off, employees will seek satisfaction in their day-to-day work – and will look elsewhere if their employer is not providing that fulfillment.
2.Fair and competitive pay is still important. Despite the abovementioned survey findings, salary still holds weight in employee retention. That said, 65.2% of employers gave raises, and 40.2% gave bonuses in the past year to reduce turnover. Plus, 53.3% of employees said a pay raise would convince them to stay at their current job if hypothetically offered a better opportunity elsewhere.
In the new year, employers should ensure their pay scales at least meet the market rate and make adjustments as needed based on their research. This is crucial not only to retaining talent but also recruiting candidates.
3.Trust between employees and employers is waning. As evidenced by increased union activity, employees are losing trust in their employers. Take, for example, these survey results: According to employers surveyed, nearly half (49.3%) of departing employees told their supervisor that they resigned on the basis of “personal reasons.” Yet, when we surveyed employees, just 20.1% cited personal reasons as their motivation for leaving.
Declining trust, transparency, and communication in the workplace is a recipe for retention troubles, leading not only to toxic work environments, but also disengagement, lower productivity, and dissatisfaction. Make 2024 the year to nurture relationships across your organization, and you’ll be more likely to retain your valuable staff members. Creating various feedback channels (like pulse surveys), holding regular one-on-one conversations between employees and managers, and giving meaningful recognition are good strategies for encouraging relationship-building.
4.Flexibility facilitates employee happiness. Flexibility and work/life balance were recurring themes throughout iHire’s survey. For example, 21.4% of employees quit their jobs due to a
poor work/life balance and respondents ranked flexible scheduling second (29.4%) only to a pay raise when indicating what their employers could offer to prevent them from taking another job.
Although more companies are requiring employees to return to the office in some capacity in the post-pandemic world, keep in mind that flexibility doesn’t necessarily mean “working from home,” as your people have different needs, priorities, and lifestyles. To boost retention in 2024, consider offering various types of flexibility, such as hybrid arrangements, flex time, additional PTO, job sharing, part-time work, and four-day workweeks.
5.Employees are focused on the future. 1 in 5 employees left a job because of a lack of growth and advancement opportunities, and 28.6% said they would stay with an employer instead of pursuing another job offer if provided these opportunities. Companies that invest in their staff’s development and show them what lies ahead in the form of career pathing can prevent stagnation, increase engagement, and ultimately raise retention.
Spend time in 2024 discussing your employees’ career goals and map out what it will take to achieve them. Support them in their pursuit of those goals through upskilling or reskilling, providing additional training resources, and reimbursing them for educational programs, courses, workshops, and memberships to professional groups in their industry. However, not all workers want to move up; some may move laterally into roles where they can better use their strengths and follow their passions. Career latticing, a more dynamic method of development, can help these employees find their niche and, therefore, improve retention.
In the coming year, aim to retain talent by focusing on the employee experience. Hone a positive, engaging company culture that exudes trust and transparency, builds relationships, enables flexibility, and supports professional and personal development, and watch your retention rates soar.
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ABOUT THE AUTHOR
Lisa Shuster, MBA, SPHR, SHRM-SCP
Chief People Officer for iHire
Lisa Shuster, MBA, SPHR, SHRM-SCP, is the Chief People Officer for iHire, an industry-specific recruitment platform. Shuster has more than 20 years of experience serving as a human resources leader. Previously, she served as Founder and President of PeopleWorks, an HR services delivery and consulting company. A SHRM Senior Certified Professional (SHRM-SCP) and Senior Professional in Human Resources (SPHR), Shuster also heads up iHire’s HR Services & Consulting Practice.