In The Future

As “quits” increase, organizations must revisit and revitalize their engagement strategies

As quits increase, organizations must revisit and revitalize their engagement strategies

While the number of “quits” – or the measure of an employee’s ability to voluntarily change jobs – have declined slightly over the last month, year over year they’re beginning to inch up, meaning that more employees are developing the confidence to venture back out into the work force.

Experience indicates that when the economy is faltering, most employed workers hold on to their jobs even though they could be less-than-ideal fits. These once-nervous employees made calculated decisions to keep their heads down and plug away until the economy bounced back. However, as the economy now continues to improve, employees may begin to feel as if they’ve weathered the storm and can begin to put out feelers for something new. This is especially true for younger employees who may not have as much invested in an organization and/or position as a more experienced worker.

The latest “Job Opening and Labor Turnover” http://www.bls.gov/news.release/jolts.nr0.htm report from the U. S. Bureau of Labor Statistics shows a quit rate of 1.5% in January 2012, up from 1.4% 12 months ago. The number of quits rose to 2.0 million in January 2012 from 1.8 million at the end of the recession in June 2009, but still remains far below the 2.9 million recorded at the beginning of the recession in December 2007.

The total number of not-seasonally-adjusted quits in January 2012 increased slightly from January 2011 for total nonfarm, total private, and government. One region—the Northeast—experienced an increase in the number of quits over the year (from 1.0% in January 2011 to 1.3% in January 2012); the other regions had little change in the number of quits.

The number of quits will continue to rise as the economy improves. Consequently, now is the time to examine your company’s engagement initiatives. What is your organization doing to retain your best and brightest? Here are some suggestions on where to start:

  • Educate managers on why individuals leave organizations, the cost of this lost talent, and the critical role that managers play in developing and retaining key employees. If you’re not monitoring and evaluating turnover statistics, you’ll find it difficult to develop strategies to counteract an exodus of employees.
  • Invest in career development. This is especially critical to retain your younger employees. According to the BLS, on average, Gen Y employees only remain employed at a company for a year-and-a-half. They tend to be impatient and often become bored with routines, so organizations must offer career development opportunities to keep them interested, challenged and engaged. Employees without a career “path” can become complacent and soon look elsewhere for advancement.
  • Train managers on how to coach team members to keep them motivated and aligned with the mission and strategies of the organization. Help managers learn and develop the tools, skills and confidence to identify, nurture and retain talent. Institute a process to assist managers in the development of action plans for retaining individual team members.
  • Make sure your company lives its values. Many employees are searching for companies that demonstrate values similar to their own. They want to work for companies that are committed to the community and environment. They also want opportunities to participate in volunteer programs which provide opportunities to network with fellow colleagues, use their abilities to help others, and make a difference in their communities.
  • Recognize and reward performance. Acknowledge efforts and success. Today’s employees seek advancement, so reward high performers with new projects that expand their skills.
  • Offer competitive salaries and benefits packages. Research your competitors and salary/benefits in your region to see how your organization stacks up. Competitive salaries and benefits will not only help retain high performers, but it will aid in attracting the market’s best applicants.
  • Foster a friendly company culture that encourages open communication between management and employees. Make your employees feel valued.

Prepare your organization now to weather the wave of “quits” anticipated during 2012.