Worker Woes

There are certain employees you want to keep long-term. As employee fatigue, burnout, and walkout continue to be prominent issues today, that’s not going to be an easy task in 2024—especially when, according to the Bureau of Labor Statistics, the average employee remains at a job for only 4.1 years. 

To help you keep key workers way beyond that, here’s a look at the whys, whats, and hows of employee retention from several respected resources. 

William F. Ziebell, CEO of Gallagher’s Benefit & HR division, sums it up in a nutshell: “An organization’s ability to retain employees ultimately impacts its bottom line,” says Ziebell, “because hiring and training a new employee usually costs much more than retaining someone who is already on the payroll.”

Looking At Last Year

Gallup offers a glimpse into what people want versus how employers perceive them. Despite all the talk about hybrid and remote work, Gallup research conducted last year found that the way people are managed is four times more important than their work location when it comes to employee engagement and well-being.

The challenge, according to that research? “Many organizations are radically retooling the ways they do business, leaving many employees, including managers, stressed and disconnected,” shares Gallup.

For example, when Gallup asked managers about changes their companies made in 2023, those surveyed cited three major ones:

→ Added job responsibilities for employees (64%) 

→ Restructuring of teams (51%)

→ Budget cuts (42%)

What’s Up This Year?

What does that mean for 2024? “Leaders should consider retooling their management strategies to better support the changing needs of their workforce and organizational culture,” suggests Gallup. The management consulting company identified trends expected to impact workers in 2024: 

• Employee stress is even higher in the United States now than during the pandemic. 

• Employee engagement is up, but Gallup describes it as “a slow crawl back in 2023 after a post-pandemic slump.”

• Less than a quarter (23%) of U.S.-based workers say they “strongly agree” that they can completely trust their employer. 

• It’s not just staff. In fact, “in 2023, managers were more likely than non-managers to be disengaged, burnt out, and job hunting,” reports Gallup. 

• Whether staff or management, less than a quarter (23%) report they strongly agree that they receive the necessary amount of feedback. That’s critical because people who get what they consider appropriate feedback feel four times more engaged than their coworkers who don’t. 

• Just 20% of employees report sensing any connection to their company’s culture. How can you tell if that is your organization? According to Gallup, “Stalled initiatives, deteriorating morale, and bad customer feedback are clear signs employees aren’t connected to their company’s culture. And when an organization’s culture is in trouble, everything becomes harder.” 

Steps to Take 

The Niagara Institute has analyzed some of the 2023 Gallup Research and reports that, for 2024, “The [No.] 1 operational priority for organizations is retaining their talent. This is even above revenue.” 

Those steps include:

• Developing consistently strong onboarding. Why? According to Paychex, 80% of new hires who experienced a poor onboarding experience say they plan to leave.

• Prioritizing inclusion. According to McLean & Company, turnover is 1.5 times greater at companies that don’t. 

• Focusing on company culture. MIT/Sloan has found that as a predictor of turnover, company culture is 10 times more important than compensation.

• Providing development opportunities. According to Centrical, “More than half (56%) of leaders say concerns over career growth opportunities is the biggest cause of voluntary resignation.” 

• Developing leadership. “A supportive manager can improve an employee’s likelihood of retention by 300%,” reports Workday.

The bottom line? The Niagara Institute concludes, “As we enter another year of VUCA (volatility, uncertainty, complexity, and ambiguity), it will be crucial for leaders across all industries to understand shifts in the workforce to develop strategies to keep talent from leaving.”