Workforce Concerns: Factors Driving Employee Attrition Revealed
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The bad news? Around 46% of employees in small and medium-sized companies in Europe plan to look for a new job in the next 12 months. This number alone shows that the needs, desires and opportunities of top executives have changed significantly.
And now the good news: We examined the question of why more and more employees are thinking about quitting their jobs and what factors would motivate them to stay.
Employees are on the move - but why?
Overall, 90% of HR managers in European SMEs say their company is suffering from skills shortages, recruitment problems or lack of employee retention.
But why? In the last two years affected by the pandemic, workers have re-evaluated their professional and personal values:
- 71% would like more time for their families
- 71% want a better work-life balance
- 68% would like a higher salary
shows that companies need to focus not only on attracting new talent, but also on the talent they already have in the company.
The most important reasons for employee departures
Remote work, hybrid work, flexible work - working during the pandemic is more challenging than ever. About 32% of respondents see a stressful work environment as a reason for quitting. But too little praise and poor development opportunities also make employees think about changing jobs.
- 31% would quit because their work was not valued
- 30% would quit because of a lack of opportunities for advancement
Stagnant professional development seems to be a particularly sore point. About 37% of workers say the pandemic has affected their career, while 35% feel they missed out on a promotion they were entitled to. This can be a significant blow to morale.
What does it all mean?
HR managers and company leaders need to think very carefully about how they engage employees who work remotely, in a hybrid format, or wholly in the office in their careers and promotions.
This is particularly important because the propensity to change roles is particularly high among remote workers (53%). This could be due to remote employees being less loyal to their employer or having more opportunities due to working remotely.
Staying is more than just money
Admittedly, a raise is a good reason for more than half of employees (54%) to stay with their current employer. But more appreciation is also at the top of the list (35%), as is a good work-life balance and social benefits (30%).
96% of HR teams use employee retention strategies. However, for these to be effective, employees' priorities, the potential reasons for their departure and the factors that contribute to employee retention must be considered holistically.
What does it all mean?
High-quality performance and career discussions are crucial. Not only do they highlight personal pull and push factors, but they also help managers identify overworked or frustrated employees and ensure that they receive the necessary appreciation and opportunities for advancement.
Rethink performance post-pandemic
Good performance management helps employees develop professionally, feel valued and realize their own potential.
However, only 51% of employees say that reviews in their company are fair. Additionally, our results showed that managers are no longer providing feedback regularly enough since the pandemic.
What does it all mean?
The HR teams must make the performance appraisal process fair and regular and adapt it to the new working world. Especially as employees work remotely and become increasingly disconnected from the workplace, exceptional inclusion is at stake.
HR teams can be key players in success
In order to grow sustainably, SMEs must pull out all the stops to retain their existing talent and hire the best applicants. Your HR department must prioritize sustainable talent acquisition and retention.
Two things are currently lacking: One in six HR managers surveyed (18%) do not have the time or resources to drive and manage more strategic tasks.
What does it all mean?
In order to be able to support companies on a strategic level, the human resources department needs the right tools - ones that relieve them of routine tasks and make their work easier.
In the complex landscape of evolving workplace dynamics, IceHrm recognizes the imperative for HR teams to address the multifaceted challenges outlined in this study. Leveraging innovative tools and strategic approaches, IceHrm stands as a partner in reshaping HR practices for sustainable talent management.
