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Retention strategies require some rethinking. In the United States, a record 3% of the workforce quit their jobs in September 2021. At the time, The Economist said some of the churn is transitory reflecting job dissatisfaction when the economy was in free fall. The pandemic was winding down and job hopping felt much safer. The prevalence of work from anywhere (WFA) makes some jobs more attractive than the ones people have now. WFA is not an option for those who are handling freight in the warehouse or driving a delivery truck, of course, and the folks in these jobs may be tempted to look elsewhere.
The quit rate is highest in low-paying jobs that face the public, such as restaurant wait staff. Since warehousing is relatively high pay in a healthier environment, high resignation rates are likely a reaction to a bad boss or poor working conditions. The problem has been building for a while. In 2019, for example, the rate was already close to a 20-year high. Covid is still with us, but it is unreasonable to blame resignations on it.
The cost and unavailability of childcare creates a situation where some parents save money by staying home. People are starting their own businesses at higher rates, and some workers are willing to gamble with a startup rather than staying at an unpleasant job. Retirements in the “baby boomer” generation are more numerous than the number of new entries to the workforce.
What can you do about this problem? Conducting “stay interviews” is one way to keep your finger on the pulse. Exit interviews are valuable too, but they are unlikely to change the employee’s decision to quit. Some companies have created four-hour shifts to accommodate young parents who want a job but cannot afford to be away for a full workday. Finally, pay levels may be affected, but they are far less critical than you might believe.
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