This guest article was contributed by Shelby Palmeri, SEO Content Writer, at CareerPlug as part of the 2022 HCP Benchmarking Report.
As a business owner, you know that turnover is expensive and stressful. Every employee is an investment for your business, and it can be difficult to see one go. Plus, the process of recruiting and hiring a replacement can take your attention away from running your business, resulting in lost productivity and revenue.
If you’re in an industry that’s known for turnover, the problem is even worse, because it can lower the morale of the employees that stick around, increasing the likelihood of even more turnover. It’s no wonder that two big questions on every employer’s mind are:
How can I keep my employees around?
Let’s review some data from real job seekers on what makes them quit their jobs and discuss some ways you can improve your retention efforts.
Why Employees Leave Their Jobs
CareerPlug recently conducted a survey and asked participants if they have considered leaving their job in the last twelve months. Over 50% said they have thought about leaving their current job in the last year.
This is huge! High turnover is a trend across industries, and home health care is no exception. According to HCP data, the employee turnover rate for the last couple of years has remained around 60% (though some organizations experience much higher rates).
Here are the top reasons your employees may be quitting and what you can do about it:
1. Dissatisfaction with Compensation
It’s no surprise that not being satisfied with current salary or hourly pay is a major reason that employees would consider leaving their job. Labor is currently in high demand, so many employees and job seekers have more leverage than ever before when it comes to demanding better pay. This shift in power has influenced many employees to quit their jobs in search of higher wages.
In another recent survey of hourly workers, CareerPlug found that 55% of workers are planning to seek new employment in order to get a pay increase in 2022, while 64% said they would stay at their current job if their employer offered them the pay increase they are seeking.
As a post-acute care business owner, it’s important to make sure you are paying at or above the average compensation in your market. Bonuses and other incentives can also help you show your employees you value their contributions to your business.
2. Lack of Benefits
Once again, with labor in such high demand, employees are seeking out jobs that offer them more for their hard work. In fact, many hourly workers stated that the right benefits would be enough to keep them at a company, even if they wished for higher wages. In the same CareerPlug survey, 66% of workers said they are willing to accept additional benefits over a pay increase from their current employer.
Health insurance, 401k, and other employee perks are becoming more commonplace, and employers that get more competitive or creative with employee benefits will likely have better luck both recruiting and retaining employees.
3. COVID Safety Concerns
Safety concerns over COVID-19 still plague many job seekers. A U.S. Census survey conducted in March 2021 found that 4.2 million adults are not working because they are worried about getting or spreading COVID-19. These concerns have caused employees to look for a job in a different industry or to consider leaving the workforce entirely. This is especially pertinent in industries like home care, where working closely with others is part of the job description.
One way to combat these issues is by implementing health and safety guidelines and making sure that all employees are aware of them. Show employees that their health is important to you and provide them with the health and safety resources they need.
4. Not Enough Flexibility
Many workers say that the desire for a more flexible work schedule made them consider leaving their job in the last year. Additionally, when CareerPlug asked job seekers what influenced their decision to apply to a company, “a flexible work schedule” was the most popular response among women.
The pandemic caused many people to reevaluate their work/life balance, so flexibility within the workplace is likely a desire that’s here to stay. One survey by FlexJobs found that 70% of millennials have left or considered leaving a job because it lacked flexible work options, and about half of older workers report the same.
These days, businesses might consider things like remote working options and shorter work weeks. Giving employees longer breaks, less meetings, and the ability to easily swap shifts with co-workers can also provide more flexibility.
5. Stressful Work Environment
A work environment that you like is obviously important for job satisfaction, and disliking the work environment seems to be an influence on why employees quit. Not only is a healthy work environment good for retention, it can actually have a positive impact on productivity and can reduce costs related to absenteeism, workers’ compensation, and medical claims.
In industries with stressful working conditions or frequent change, it’s even more important that managers support their employees and create a culture of caring.
6. Conflicting Responsibilities
Sometimes the reason an employee leaves has little to do with the job itself. Caring for a sick family member, the addition of a new child, or other care responsibilities can lead to employees quitting.
In addition to creating a flexible work schedule, creating a culture of autonomy and allowing employees to create their own schedule or minimize working hours when they need to can help you retain the staff you already have.
7. Lack of Communication
According to HCP data, lack of communication is the number one reason employees in the post-acute care industry leave their jobs.
Employers and employees benefit from formalized methods of communication, and employees feel more supported when their managers and coworkers are easy
to reach and communicate with. The ability to express concerns and problem solve with managers is a huge factor in workplace satisfaction.
With proper, open communication channels, you may be able to catch employees’ concerns before they turn into resignations.
Other Factors to Consider
Though research gives us great insight into some of the main reasons employees quit, there are still plenty of other factors to consider. General job stress and lack of mental health support may cause employees to take time away from a role, especially in the midst of a pandemic. Changes at home, a move to a new city, or the desire for growth all may lead employees to seek out something new.
Many times, there is not one simple reason for an employee quitting their job, but many factors coming together that lead them to the decision to resign. As an employer, you can’t control everything, but you can take steps to mitigate the most common reasons that employees consider quitting.
Keeping Employees Around
Instead of focusing on the things that make employees leave, think in terms of what will make employees want to stay. Get to know the needs of your employees and act accordingly.
Provide employees with truly competitive compensation and offer raises or bonuses when you can.
Employee perks and benefits can go a long way in making employees feel appreciated and secure.
Flexibility and autonomy are more desired than ever in this pandemic workscape.
Maintain open lines of communication with employees and create a safe and positive work environment.
When all is said and done, what employees are asking employers for is actually pretty simple: Be a great place to work.
To learn more about CareerPlug’s services, call 512-579-0163 or visit us at www.careerplug.com.