A global event as massive as the COVID-19 crisis presents more than obvious impacts on the business world. As the pandemic gradually winds to an anticipated end, one of the growing concerns among HR leaders is how to reduce employee turnover. According to a report published by CNBC during the latter part of April this year, 1 in 4 workers is considering quitting their job after the pandemic.
Imagine asking employees that have been working full time from home since the onset of the pandemic to resume full-time in-office; there will be some resistance for sure. Apart from being forced to shut down full-time in-office operations, other ripple effects are emanating from the pandemic this year and through 2022.
Some of these impacts, as predicted by human resources experts, will lead to the massive exodus of workers from their employment during the pandemic as soon as the pandemic waves subside. Despite the massive loss of jobs during the pandemic, employers are expected to face their own share of the pandemic effect after the pandemic ends. In this post, we share some highlights on why employees will likely leave their jobs in record numbers after the pandemic.
Many Reasons Account for Increased Employee Turnover
1. More Professionals Prefer Full-time Remote or Hybrid Work to In-office work
This is no longer news, but what are the consequences for companies who are yet to adjust or those planning to bring workers back to regular office premises? Employees have tasted the benefits of working from home, and may never want to subscribe to any work arrangement other than a hybrid or full-time remote work.
As many businesses have adjusted in line with the changes, so have many professionals. Apart from successfully establishing well-equipped home offices, professionals have also discovered that they can achieve an equal or higher level of productivity by working from home. Many studies also show that this pattern works for both employers and employees.
This is even besides the added benefits of striking a close-to-perfect work/life balance, saving transportation costs, and operational costs (for employers). Hence, asking employees to return to the “ways of old” may seem pretty unrealistic. Expectedly, they might leave and seek out opportunities that offer full-time remote or hybrid work.
2. Intensified Psychological Burnout
One of the cost-saving strategies adopted by many employers during the heat of the pandemic is laying off or outright dismissal or furloughing of non-essential staff. Cases like lack of work may warrant such a strategy, but in this case, there wasn’t enough money to sustain elaborate payrolls.
Companies that could afford to stretch themselves a little bit more resorted to outsourcing some aspects of their daily activities, while those who couldn’t simply spread the work among the remaining workers. A recent Harvard Business school study reveals that thousands of employees are working more hours than usual.
While they may not complain (obviously, because of high job insecurity), they will likely quit and jump on the next best opportunity. Employers, therefore, need to watch out for signs of burnout in employees if they must save themselves from an inevitable exodus of workers.
3. Rising Cost of Living in Metropolitan Centers
Among the effects of the pandemic on U.S. households, is the rising cost of decent housing in metropolitan centers like New York. This means that people might want to explore chances of rural resettlement while still maintaining their urban-level paychecks. And the only way to achieve this is by adopting the remote work model.
So, as the cost of rental residential apartments in urban regions continues to rise, the average American worker is forced to make adjustments to check excessive spending on housing. Faced with a mandatory request to resume full-time office work, an employee in this situation will most likely prefer to work for another company that allows work-from-home.
4. The Need for a Better Work-Life Balance
Before now, many professionals have been in a survival mode, working more hours than normal, putting up with increasing job insecurity, higher cost of living, and catching up with domestic affairs. As the end of the pandemic draws nearer and nearer, people will resume their search for better work and life balance.
A recent survey of 3.1 million American employees revealed that employees work prolonged hours now more than ever, with some even working 7 days each week. Considering that working from home has proven to be more productive, and it offers an opportunity for more involvement in domestic activities, employees may quit their jobs in record-high numbers post-pandemic.
In families that do not share financial responsibilities evenly, the women may quit work to provide more active support in terms of child care and domestic chores. Regardless of rising job insecurity rates, some pregnant women, for instance, who may not be able to handle the additional workload, will likely quit. Retaining top talents requires creating and sustaining a culture of healthy work-life balance, the absence of which contributes to employee turnover.
5. Poor Employee Benefits
When employees evaluate the realities of productivity and the quality of benefits available to them, it can be a huge contributor to a high turnover rate, if unfavorable. No one is comfortable working under high-stress and low-pay conditions. The compensation, many times, may not be exactly commensurate, but experts advise that it should be reasonable.
The subject of offering competitive employee benefits packages is an age-long discourse and will continue to be discussed long after the pandemic. It may seem impossible for small and medium-sized business (SMB) owners to offer competitive employee benefits plans. However, with a well-structured PEO partnership, they can compete favorably with large corporations in their respective industries.
Learn More About How You Can Mitigate Employee Turnover Post-Pandemic
For several years, Mission has served as a leader in the HR and PEO industry, providing rock-solid HR and outsourcing services to SMBs. The Mission is also a leading partner in the PEO, HR, payroll, and benefits outsourcing marketplace. We are equally experienced growth strategists, sales, and digital marketing experts. We’d love to take through every step to creating smart digital marketing goals and achieving them.
We provide result-oriented services for small and medium-sized organizations and government contractors, serving as a trusted partner in integrated human resource compliance, risk management, employee benefits, employment practices liability insurance (EPLI), and payroll processing. If in doubt or still unsure of what next steps to take, contact us today at The Mission to schedule a consultation.