While there is optimism we will soon emerge from the year-long pandemic, executives fear an unparalleled wave or uptick in attrition. Economic growth, rapid hiring, and a rising sense of security are leading employees to ask if their current company provides the connection, collaboration and mission they are seeking.
According to recent studies, employee attrition rates may range from 25-50% at companies, a 2X+ increase (the average turnover rate in the U.S. is typically 12-15% annually, according to the U.S. Bureau of Statistics):
– “Turnover ‘tsunami’ expected once pandemic ends. More than half of employees surveyed in North America plan to look for a new job in 2021.” (Source)
– 1 in 4 workers (26%) plan to look for a job at a different company once the pandemic has subsided. This is even higher (34%) for Millennials, the largest generation in the workforce today.” (Source)
There are several drivers of the uptick in attrition:
– Career advancement and higher pay
Prudential’s study found that of those planning to leave their current job, 80% are concerned about career growth. Top performers are most concerned about their growth and no longer feel geographically tied to local employers in a remote world.
– Lower engagement
A recent study found that 46% of respondents feel less connected to their company, and 42% say company culture has diminished since the start of the pandemic. Just 21% said they are very engaged at work.
– Vast divide in expectations between bosses and their teams
PWC uncovered a large gap in expectations for remote work after the pandemic:
A survey by Blind, an anonymous network for professionals, illustrated potential implications well. At the end of March, out of 3,050 users 35% said they would quit if WFH ended. Interestingly, 11% of respondents said they had “already negotiated WFH forever.”
Leaders must proactively put strategies in place to address rising attrition rates and prevent disruption in their teams. Teams sharing Teamraderie experiences every 8-12 weeks measure stronger connection and engagement, register higher ratings of their team and company and have lower attrition.