The big resignation might not be as big as expected
New WorldatWork Survey Reveals 21% of Organizations Have Experienced Voluntary Turnover in the Past 12 Months
SCOTTSDALE, Ariz., May 17, 2022 /PRNewswire/ — According to a new survey released by WorldatWork in partnership with UFlexReward, employee turnover rates are above pre-pandemic levels, but below expectations for an era of great quitting.
The “Workforce Planning in the Great Resignation Era” survey shows that while voluntary turnover is higher in United States than in any other country, it has only increased by 3 percentage points since before the global pandemic.
“We’ve heard a lot about the ‘big quit’, but no one has really quantified the revenue directly from a group of leading organizations. This new joint study from WorldatWork and uFlexReward provides the benchmarks most recent cases, but especially feedback from organizations on what has been most effective in combating turnover,” said Steve Brink, president of uFlexReward. “The study also provides benchmarks on remote work, HR skills priorities, and other valuable insights.”
The top priorities for survey respondents, whether employees or job seekers, are remote work and work/life balance. Among the most effective areas of action cited by respondents to reduce turnover are recruitment; diversity, equity and inclusion (DEI); recognition; and development/performance management.
“We find that the most effective measures taken by employers to reduce turnover relate to remote working and work-life balance. Among organizations that have implemented or are currently implementing actions in HR policies , 87% are adding remote work options, showing their recognition of the importance and effectiveness of work/life balance on retention and recruitment,” said Deirdre Macbeth, Content Director of WorldatWork. “In fact, organizations are hiring more HR staff to address these issues and rethink the way the workforce works.”
Examples of results:
- Revenue is above pre-pandemic levels but below expectations for an era of great resignation.
- On average, 21% of organizations experienced voluntary turnover in the last 12 months, an increase of 17% compared to before the global pandemic (18%). Even regardless of the size of the organization, this is consistent.
- This turnover rate is higher in the United States than in any other country.
- HR policies, compensation and recruitment are cited as the most effective areas of action to reduce turnover. Other areas of action included DEI, recognition, development/performance management, and benefits, but some of these actions may take longer to achieve the desired impact on retention.
- 47% prioritize work-life balance
- 47% changed or added flexible working hours/alternative hours
- 44% have changed or added a remote work policy
- 44% of new paid holidays modified or added (including paid holidays)
- 42% increase in geographic reach for finding qualified candidates
- 42% increase in off-cycle salary increase
- 32% changed pay levels or pay bands for roles
- 20% modified or added a DEI program or initiative
- Organizations are prioritizing recruitment skills when recruiting new HR talent.
- 80% of organizations say labor shortage/competition for talent is the biggest HR challenge in 2022.
- On average, the number of full-time HR employees focused on acquiring and recruiting HR talent has increased by more than a third) since before 2020.
- On average, half of employees are currently working remotely.
- Before the pandemic, 13% of employees worked remotely, with a peak of 67% at the height of the pandemic, and that number is now leveling off at 50%. Of those that employ remote workers, 8% of organizations have 100% of their employees working remotely.
- A quarter of organizations plan to downsize their physical workplace.
- More than half of organizations using hybrid schedules do so on a two- or three-day basis.
About the study
WorldatWork has invited all of its members and customers to participate in an electronic survey on pay equity initiatives. A total of 556 responses were received, representing organizations of different sizes and multiple sectors. Email invitations were sent directly to attendees on February 14, 2022, and results were collected over a 14-day period. Sample sizes vary by question.
WorldatWork is the leading global not-for-profit organization for professionals engaged in the critical practice of Total Rewards. We serve those who are responsible for developing inspired, engaged, productive and engaged workers in effective and rewarding workplaces. We guide them in designing and delivering total rewards programs through our training and certification; exchange of ideas; thought leadership; knowledge creation; information sharing; to research; advocacy; and networking.
uFlexReward is the world’s first holistic Total Rewards digital platform, combining multiple silos of Total Rewards data into a single, real-time “always on” platform. The platform facilitates agile rewards and HR transformation by quickly providing a continuous, actionable database of any organization’s most important expense: people. Thanks to the highly configurable platform, you can use integrated modeling and simulation functions or use other applications to quickly answer complex questions and problems throughout your organization. Aggregating all your data from disparate systems provides the unique ability to view, assess, and make decisions on key elements such as detailed compensation data for complex statutory disclosures; the gender pay gap and executive pay ratios; and manage pay equity across all your countries, functions and teams. Since the tool contains all elements of total rewards, uFlexReward provides intuitive real-time total reward statements with the ability to select options to customize total rewards for each individual.
Chris RoeMarketing director
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