“No one wants to work anymore,” is a common phrase I have been hearing a lot lately. I can’t help but to question what prompts business owners to say such a thing. Do any of the businesses on Fortune’s list of “100 Best Companies to Work For” have recruiting and retention issues, and if not, why? Just a few years ago, we heard about the great resignation, where there was a mass exodus in the workforce during COVID, but according to the US Bureau of Labor and Statistics, North Carolina has less unemployment in April 2023, than in February/March 2020, before COVID. It is my opinion that high turnover, a small applicant pool, and even diminishing employee moral are all just symptoms of how a company operates. Before a business owner blurts out, “No one wants to work anymore,” I suggest looking internally at the employee experience.
High Turnover
Turnover is when employees quit, and employers have to replace them. High turnover is when the turnover rate is higher than the industry average; and every industry/region has its own turnover rate. Not all employee relationships are salvageable, however, companies should be aware of the job market, their pay structure, and what is being said in the exit interviews.
- Look at the job market analysis: Are there 3 newer businesses in the same industry pulling your talent away? Are there new and modernized advances? Think about the horse and buggy builders when engine powered vehicles entered the market; or the .com boom, and how many left their boring unsatisfying jobs to embark on their own entrepreneur dreams.
- Review the pay structure: Does the competition pay $1 more, or $10 more an hour? What is the regional average for the open positions? What is the Total Compensation Package being offered? Does the company have a written pay structure plan that is organized in a methodical manner?
- Complete exit interviews: When an employee voluntarily resigns from the job, it is usually a general statement of intention to leave. There could be underlying reasons that they may not feel comfortable sharing with their immediate supervisor. Maybe the immediate supervisor IS the reason businesses keep losing good employees? Maybe the competition is targeting the staff because they are so well trained? Only a judgement free, and open interview could possibly uncover the real reasons employees are leaving.
Small Applicant Pools
What if businesses are not getting applicants? Advertising goods and services, and recruiting top talent should be treated equally as important. If children mimic their parents, then employees mimic their supervisors. Make sure there is a recruiting strategy such as an employee referral program, thorough job descriptions, and a job board analysis.
- Employee referral program: Good employees know good people; it is the law of association. Why not reward employees for recruiting for the business? If employees are unhappy at work, they will not promote the business.
- Job descriptions: How thorough, and inviting is the current job description? If employers are haphazardly posting on social media a few sentences about hiring, they shouldn’t expect qualified and professional applicants. Job descriptions offer businesses legal protections, and can help to attract the right qualified candidates.
- Job board analysis: Not all job boards are created equal. Knowing the target audience is extremely important in sales, but also recruiting. Employers will want to advertise in different platforms based on who they are recruiting.
Diminishing Employee Moral
What if employees stop going above and beyond? It is obvious to customers when employees are disgruntled. How can customers love your company if the employees don’t? Creating a healthy, and (psychologically) safe work environment is a key factor in retention. Conducting employee surveys, enforcing employee policies, and holding regular company meetings all go a long way to creating a happy company culture.
- Conduct employee surveys: The best way to know what your employees are saying about your company is to ask them. Provide them with an anonymous venue to voice concerns, ask questions, or be direct without fear of retaliation.
- Enforce employee policies: The best way to lose a good employee, is to let a bad employee slide. If employees witness coworkers’ unacceptable behavior go unpunished and accepted, they may begin to resent them, and will have less reason to follow the rules themselves.
- Company meeting: Do employees know what the expectations are? Holding company, department, and employee one-on-one meetings is vital to the flow of communication, and expectations.
There is a lot more that goes into managing people than scheduling and payroll. Most people assume Human Resources (HR) is just compensation/benefits, and onboarding. Human Resource Management (HRM) can be a great competitive tool for businesses of all sizes to stand out from the competition and create a workplace that people love coming to. HRM can be a strategic attribute to the bottom line, and reduce legal liabilities. Each employees’ strengths, experiences, and skills become capital to a business, and Personnel Success Advocacy can guide small businesses through the employee experience so they can maximize their human capital for win-win-win solutions.
