Companies are reporting unprecedented levels of turnover.
According to a Mercer study, 70% of HR professionals are predicting higher than-normal turnover this year – most notably with regard to younger workers and those in the digital space.
In addition, McKinsey research mentions that 40% of employees report that they are likely to leave their job within the next 3-6 months.
Employees across industries are leaving because they do not feel valued and have poor work-life balance.
The future of work will succeed only if everyone feels they are getting a fair deal and benefiting from an equitable relationship between employer and individual regardless of employment role and the type of work they do.
How does employee attrition affect the company?
Attrition affects the workforce in two ways:
- Reducing the number of available employees and changing the organization’s remaining employees.
- The impact staff turnover has on a workforce is heavily influenced by whether it is voluntary attrition or involuntary.
On the other hand, the cost of replacing an employee can range from 50% to 200% of their annual salary according to Gallup.
Tech employers attrition: The “Whys”
Workload and Burnout
Given the massive labor shortage, particularly in Software industries, the remaining employees have had to compensate for this talent gap.
Fatigue, frustration, or apathy resulting from prolonged stress, overwork, or intense activity usually tend to produce burnout.
In a study in the Employee Engagement Series conducted by Kronos, 46% of HR leaders say employee burnout is responsible for up to half of annual workforce turnover.
In many cases, employees reported that they are leaving because their work is not meaningful, interesting, and challenging, and they do not have opportunities to learn new skills at work.
A Gallup report, commissioned by Amazon, indicated that 57% percent of U.S. workers want to update their skills, and 48% would consider switching jobs to do it.
Not feeling supported by colleagues
Colleague’s support, both formal and informal, is a valuable resource in the organization that supplements formal support received from supervisors and facilitates the proper functioning of employees in the organization.
According to Dr. T.T. Selvarajan, the support of colleagues creates positive feelings that increase the ability of employees to cope with organizational challenges.
There are many actions to turn attrition into attraction.
During the last few years edge companies realized that training and retraining programs could help protect them from high turnover while providing employee development opportunities.
It is vital that employers invest in continuous upskilling opportunities.
Doing so will not only lead to retaining talent but also build stronger, more agile organizations that are better equipped for the future.