Remember not so long ago, 2019 in fact, when employers could take comfort in the old saying “business as usual”, meaning that daily activities generally were routine, predictable and stable? My, how times have changed. Just two years later, the slogan more accurately could be “business as unusual”. Two years ago, the economy was humming along, and both the construction and manufacturing industries were booming. The COVID-19 pandemic upset the apple cart in a big way to the point that employers may never again see a return to the traditional “business as usual” work environment.
Aside from the preventing the spread of the virus in the workplace, supporting/facilitating worker vaccinations, establishing programs devoted to mental health, and complying with new OSHA regulations, employers have had little to do in the so-called “post-pandemic” world. In between performing these tasks, they must also try to stay in business and even make a profit. The term “post-pandemic” itself may be outdated too as new strains of COVID continue to keep the world off-balance.
The latest trend that will give employers more sleepless nights is the new sense of empowerment among workers from all sectors of the American economy. While bouncing around from job-to-job pre-dates the pandemic, it really gathered steam in 2020. According to the US Bureau of Labor Statistics (BLS), “job jumping” employees (who were laid off, quit, or were fired) was 42.3% of the workforce in 2015, 45% in 2019, but in 2020 it rose to over 57%.
Resigning outright is very popular with more than a third of staff turnover occurring during the first year; more than 50% quit within the first six months. Throw in the thousands of experienced and dependable baby boomers who are retiring annually and employers find themselves in quite a predicament.
What must employers do to survive the trend that business and finance observers call the “turnover tsunami”? First, accepting that this phenomenon is unlikely to decline is the first step and that new rules now apply. In a reversal of traditional role-playing, prospective employees are shopping for employers that fit their needs, lifestyle, and even their political philosophies. Where job applicants once tried their best to sell themselves and hope for an offer of employment, companies now must attract prospective new hires and hope to be selected.
Second, never forget that your current employees must be treated fairly and respectfully because they too may be having second thoughts about their current employment status. For example, imagine losing a veteran employee because they feel over-worked, ignored, or under-appreciated? Encouragement, a few kind words, or even just a friendly “hello” go a long way to help sustain loyalty among your existing workers.
Everything possible must be done to keep them happy and committed to their place of employment because the costs and time involved to replace them can be substantial. There is no better teacher than experience, so a valuable departing veteran worker leaves an (expensive) black hole to fill in the company starting line-up but that is only part of the story. When a long-term employee leaves, other undoubtedly already stressed co-workers must take up the slack until a new employee may be found which of itself may be a major (also expensive) challenge. Forbes reports that “turnover is costly: think about the expensive processes behind recruiting, hiring, and training, not to mention the time spent behind each phase of onboarding a new team-member.”
The best tactic is to perform an honest self-assessment to see what the positive and negative features are of the company’s culture, including how it compares to the competition in salary and benefits. Determine if employees feel comfortable voicing their opinions about workplace problems or challenges, including their salaries and benefits.
Depending on company size and resources, outside “coaching” and consulting firms are available to provide expertise and mentorship that will stabilize or even expand the company workforce with qualified candidates. Ignoring or overlooking these types of systemic problems, however, could lead to the type of “turnover tsunami” that has hurt so many companies during these uncertain times.
Please direct any questions or concerns to:
The Safety Division at Hamond Safety Management
Anthony Vacchio, avacchio@hamondgroup.com