MRA’s 2022 Turnover Survey, published this past February, concluded that the "Great Resignation" continues to be a challenge for many employers. Other recent surveys are providing statistics that show the challenge continues and point to several reasons employees are leaving their jobs.
The Conference Board released the results of a survey, conducted in June of this year, based on more than 1,100 responses. It indicated that, despite the risk of a recession in the near future, 31 percent of workers plan to quit their jobs and are actively looking for a new position. Conversely, 38 percent indicated their intent to stay with their current company.
The survey covered workers across three generations--baby boomers, millennials, and Gen Xers. The needs of each of these groups are slightly different, but the research did identify common factors for wanting to quit across all groups: a desire for greater flexibility, job fatigue (with greater impact to women and millennials), a lack of advancement opportunities, and pay (a primary focus of millennials). Interestingly, the respondents who reported intentions to remain at their current job reported the primary reasons for staying included these same factors – greater flexibility, increased job advancement opportunities, and higher pay.
The Deloitte Global 2022 Gen Z & Millennial Survey echoes many of the same concerns--albeit limited to two generations. Deloitte’s report indicates that pay is the number one reasons millennials and Gen Zs accepted new positions, however, work/life balance and learning/development opportunities also were top priorities. Flexible working arrangements were also an important factor for this group, with three-quarters stating that hybrid or fully remote work would be their preference. Flexibility to spend time with family and saving money were cited as top reasons.
Both reports identified job stress/fatigue/mental health factors as other reasons contributing to turnover. The initial challenges of layoffs due to COVID, followed by hiring challenges as businesses regained their footing, contributed to employees assuming more demanding workloads, often resulting in a higher propensity towards job fatigue. Essential businesses continued to operate, but many faced staffing shortages after returning to more normalized operations. Reports of resignations due to job fatigue were highest among millennials, with the Board report showing 25 percent of the group leaving a job for that reason.
It is clear there is a common set of factors currently affecting turnover, but the impact of those factors varies based on generation. More than ever, employers need to be cognizant of how these factors affect their workforce and become more creative with organizational and job structures to ensure practices limit job fatigue. Compensation and benefits may need to be expanded and tailored to meet generational needs. The benefit requirements of an employee starting a family are far different from those of a person who will be enrolling in Medicare. Do you have development plans in place for your employees? How much flexibility can your organization support? Even though it is only July, these are points to consider related to employee retention as you plan for the balance of 2022 and prepare for 2023. For additional, specific insights into turnover, please see MRA's 2022 Turnover Survey.