How Changing Organizational Culture Helps Improve Employee Retention
October 01, 2022
Tips and strategies for employee retention and combating the fallout of the Great Resignation.
Talent retention is one of the most pervasive challenges resulting from the COVID-19 pandemic. According to a 2021 survey by Future Forum, nearly 60 percent of knowledge workers in the United States say they’re open to new job opportunities. We’ve seen the headlines about the “Great Resignation,” as a record number of individuals, not just in the U.S. but worldwide, are choosing to resign from their jobs.
The harsh reality for employers is that turnover is becoming an increasing cost to bear. Before the pandemic, replacing an employee typically cost between 30 to 40 percent of that employee’s salary—that cost has risen to between 50 percent and 250 percent of their salary. The common response to this problem is for organizations to offer their employees more money to incentivize them to stay. While this is helpful, and while financial stability is a large motivator for workers, it’s not the totality of a sustainable solution.
A Holistic Approach
According to a Gallup poll, one of the biggest factors in the Great Resignation is employee discontent and disengagement. According to their research, more than half of U.S. employees are not engaged or are even actively disengaged with their workplace. In short: a raise can only do so much to help employees feel like valued and integral members of a team. Instead, a more holistic approach to improving workplace culture can help engage employees and retain them.
One of the most talked-about workplace issues in the media surrounds flexibility. Having had more agency to work when and where they want during the pandemic, more and more workers are realizing how important workplace flexibility is for achieving a better work-life balance. In fact, the same Future Forum study from 2021 found that more than 70 percent of employees are open to new jobs if they aren’t satisfied with their current level of flexibility at work.
Additionally, increased flexibility helps promote employees’ sense of autonomy; individuals, after all, are their own experts on what works best for them. As such, offering flexibility to employees is vital in making them feel respected and as though their emotional, social and physical wellness beyond the workplace matters to their organizations.
Ways to Grow
Increasing employee well-being also means increasing employee connections to their work through personal growth and career advancement. Managers should engage regularly with their employees so that each team member feels included and valued. Additionally, managers can advocate for their team members by helping them find growth opportunities within an organization. This is crucial in helping employees feel appreciated and secure in their career outlook.
Mission and Values
One of the driving forces behind the Great Resignation is the search for more meaningful work. In fact, seven out of ten employees are reflecting on their purpose because of COVID-19. Employees want to feel that what they do has value and impact, and that their organizations care about the greater good. This fact underscores the value in emphasizing meaning and values within an organization. Creating mission statements that are well-defined and that resonate with employee values is important. Making clear connections between the mission and each employee’s role and purpose is essential, as is identifying organizational goals and visions that inspire employees.
At the end of the day, there’s no silver bullet solution to combat the Great Resignation and successfully retain employees. Yet, when the organization’s mission aligns with the employee’s purpose, employees are four times more likely to report better health, six times more likely to stay at the company, and one and half times more likely to go above and beyond to make the company successful. Clearly, organizations that are willing to look inward and adapt to the ever-changing state of the workplace will better retain the essential talent they need to grow and succeed.
Great Resignation, talent retention, strategies for employee retention, workplace flexibility,
meaningful work, personal growth, career advancement, organizational culture