How's your company's turnover rate doing? According to the Department of Labor, workers quit at a higher rate in January than any other time since 2001. At a glance, you might be panicking at this statistic or getting ready to contact temp-to-hire agencies, but that would be a knee-jerk reaction. This data only supports the idea that workers are feeling comfortable enough to leave their job. They either have prospects knocking at their door, feel confident enough that they'll find something, or they have already secured another position. Many attribute this to President Trump's handling of the economy. It means that the economy is looking very promising.
3.2 million workers all quit their jobs, so there is no coincidence in that. The numbers haven't been that high since the wake of the dotcom bubble. Only about 1.6 million people quit their jobs per month during the horrible recession. In fact, the numbers that we're seeing right now, matches the highest level of quit rate since the recovery. That's a whopping 2.2 per 100 jobs and that number can add up quick. The quit rate is a very important measure of how the labor market is performing.
If you want the cold hard numbers, actual hiring has risen steadily for four straight months, leading up to 5.4 million in January. Great news for those with readily available staffing solutions. This, paired with elevated CEO and small business sentiments, means the economy may be moving on up with lots of room for growth, hiring, and investment. It's a fresh breath of air from the collapse of the subprime mortgage market that caused the financial crisis and millions of laid-off workers.
Break It Down Now
Long gone are the days where workers sit in fear every time they are called in for a one-on-one meeting. There's a new age dawning. The private sector held the main chunk of the quitting, with the government sector remaining relatively stable. Other notable areas were finance and insurance, real estate, and other service jobs. In the bigger scheme of things, there was an increase in the Midwest and West regions. Businesses need to react to these trends and see this in a strategical state of mind. Retaining employees will become more difficult.
When you lose an employee, you don't just lose a person, you lose money and time. Do you want to pay 50 percent of that person's salary and benefits, or even worse up to 250 percent of that? That's what it costs to lose an employee. Not to mention the detriment to team building and morale. And let's not forget the fees that go into several temp-to-hire agencies. But how can you stop this revolving door of people?
Understand to be Understood
First, let's try to understand why people leave their jobs. People quit their jobs for a change at career opportunity and growth. That's the biggest reason according to LinkedIn research. Your solution? Develop the careers of your people. If you can give them a career path, training, recognition, and a challenge, they will be less inclined to leave.
So how do you facilitate such a task? Well, your managers should start to have conversations with your employees about their careers and what the company can offer them in terms of tools and opportunities. Follow this up with actions. It's not enough to talk the talk, you must also show them that you are invested in their growth. If not, get ready to have all hands on deck finding staffing solutions that work for your specific company.
The Proof is in the Pudding
It's been proven that companies that do this will be highly desired and have higher retention rates. You can see it in Coca-Cola and Pepsi. They have their own internal universities that help their talent to move up the ranks. Shell is another company that works with new graduates to train them up for five years and includes continual rotations. This all points to the same idea. Develop your employees and your company will flourish.
Don't let another company steal your best talent because you refused to pay attention to their needs. They certainly won't hesitate to go elsewhere to advance their career. It's the age of doing right by the employees. They have more power than before in this market and it will only grow if the economy progresses in an upward trend.
Part of This is on You, But It Doesn't Have to be All on You
While it is your responsibility to elevate your employees, you don't have to bare the entire burden of staffing when the employees that do leave create skill gaps in your talent. You don't have to feel entirely overwhelmed when you have staffing solutions. With such an influx of hiring, whether it be due to economic growth or open positions, you're going to need access to a bigger, more equipped talent pool.
Temp-to-hire agencies may be your best bet if you're looking to fill roles fast as you adapt to the new economic environment. It would be a great next move to partner up with one near you. When you want to find the best and the brightest with the greatest fit for your company, find talent now with ICS. We consider more than just the skills, so you are less likely to see the revolving door of applicants. Keeping them engaged and growing, however, is up to you.