In early 2023, an alarming trend emerged in the world of employment – employee satisfaction took a significant hit. What’s even more concerning is the strong link between this decline and the economic conditions that surround us.
As someone who’s seen the ebb and flow of employee satisfaction trends in Chicago, I can attest that this downturn is nothing to take lightly. It’s not just about personal job contentment. It’s a domino effect with consequences that echo through both individual lives and the business world.
The Ripple Effect on Businesses
Have you ever noticed how your mood can affect everyone around you? Well, the same goes for the workplace. The Gallup’s State of the Global Workplace 2023 report rings the alarm bell loud and clear.
Low employee engagement isn’t just an internal issue; it’s causing a whopping $8.8 trillion loss in the global GDP. That’s not pocket change by any means. It’s a stark reminder that if you’re not thriving at work, you’re unlikely to be thriving in life.
The impact of this downturn varies dramatically across industries. Let’s take a closer look:
Despite a slight dip, the construction industry remains the happiest place to work. It maintains the top position in employee satisfaction.
In the travel and hospitality sector, employee satisfaction is on the rise. It’s like a sunny day after a week of rain, with scores improving from the second to the third quarter.
On the flip side, the following industries are navigating three-year lows in the third quarter: technology, finance, and food and beverage.
Nonprofit organizations have shown consistency in employee satisfaction from one quarter to the next. There’s a glimmer of hope with a small year-over-year improvement.
Healthcare and education have witnessed significant rebounds in employee satisfaction. Healthcare, in particular, has improved by a remarkable 17% since June, with expectations of further progress.
Identifying Root Causes
So, what exactly is an employee satisfaction crisis, and why should it concern us? To put it simply, it’s a situation where employees are far from content with their work lives. The consequences are far-reaching, and they’re not pretty. Reduced productivity, higher turnover rates, and an overall dip in morale are just the tip of the iceberg.
The key here is early recognition. Identifying the signs of a crisis is akin to diagnosing an illness. The sooner you spot it, the better the chances of recovery. This is where feedback becomes invaluable. Conducting surveys, engaging in interviews, and analyzing data reveal what’s ailing the organization.
It’s not surprising that the average employee’s happiness often correlates with their tenure in the company. Those who’ve been around for less than three years tend to be happier. It’s like the excitement of a new relationship; everything’s fresh and exciting. The onboarding process plays a crucial role in this initial enthusiasm. Sixty-two percent of employees believe their first-day impressions hold. So, creating a positive first impression lays a strong foundation for a lasting relationship.
Another critical factor is company size. Smaller companies have managed to maintain employee satisfaction. Larger companies have seen unhappiness increase with their growing workforce. Therefore, we can extrapolate that smaller and medium-sized businesses with fewer employees generally have happier workers. It’s like the cozy ambiance of a small café, where everyone knows your name, as opposed to the impersonal atmosphere of a huge chain.
Leveraging Automation for Employee Engagement
Now, let’s talk about solutions, particularly those involving automation. Automation isn’t just about cutting costs and speeding up processes. It can be a game-changer for employee satisfaction. You see, it can streamline HR processes, freeing up time for more strategic efforts. It’s like having a personal assistant who takes care of the repetitive tasks, leaving you to focus on the bigger picture.
Automation can also enhance communication, recognition, and employee feedback collection. With the right tools and platforms, you can foster a culture of appreciation and open dialogue. It’s like having a suggestion box that’s always open, where employees can voice their thoughts and receive timely responses.
Tailoring Tactics to Your Company
But remember, there’s no one-size-fits-all solution. Every company is unique, with its own values and culture. So, the tactics need to be tailored to your organization.
First, assess your company size, industry, and existing HR processes. This is the foundation for choosing the right automation solutions.
Moreover, align these tactics with your company’s mission and values. These values add “flavor” to your workplace culture. They should be evident in every interaction and decision.
Monitoring and Continuous Improvement
The journey doesn’t end with implementation. You need to monitor and make continuous improvements. Data analytics and feedback loops are your secret ingredients for success. They help you gauge the impact of automation tactics and make necessary adjustments.
Key Points
As you can see, we’re living in a time where employee satisfaction is more critical than ever. The effects of a satisfaction crisis are far-reaching and can have devastating consequences. But there’s hope, and it lies in automation and strategic solutions. There is a growing gap in employee happiness as companies expand. This emphasizes the importance of adapting HR strategies to the changing times.
By being proactive and keeping open lines of communication, we can create an atmosphere that helps employees at work and also in their lives. So, if your business is experiencing low employee satisfaction, know that you’re not the only one. There are answers available. Don’t hesitate to seek advice and help to set up automation solutions that suit your specific requirements. Just like a good recipe, it’s all about the right ingredients and a dash of innovation. Your journey to happier, more engaged employees starts today. For more information, contact Launchways.
In the wake of the pandemic, flexible work schedules have become a more common employee recruitment option. Many companies, a significant 88% of employers, now offer different remote work options. These options include the following:
50% of surveyed employers offer fully remote work
75% of surveyed employers offer flexible schedules with remote options on specific days
24% of surveyed employers offer compressed work weeks
This option allows employees to complete a standard 40-hour workweek in fewer than five days. This shift in how we work has profound implications for the modern workplace.
In the fast-evolving business world, companies continually search for innovative recruitment strategies. One such employee strategy that has gained increasing attention is the adoption of a four-day workweek. This work schedule is designed to provide employees with more flexibility and an improved work-life balance.
Introduction to the Four-Day Work Week Trend
The International Foundation of Employee Benefit Plans recently conducted a survey of employers. Its goal was to examine the four-day workweek. For this purpose, the work schedule was defined as a reduction in weekly work hours from 40 to 32 hours.
The survey reveals that 5% of employers already offer a four-day workweek. For some, it is their official policy. Others do it on a case-by-case basis. An additional 14% of employers are contemplating implementing it, and 1% are in the process of piloting such a schedule. This showcases the growing interest in the approach.
Of employers offering a four-day or 32-hour workweek, the breakdown is as follows:
41% due to employee requests
36% as a retention strategy
36% for work-life balance and company culture
25% as a recruitment tool
Some employers apply the approach company-wide. Others restrict it to specific job roles, certain employees, or designated locations.
What Are the Benefits?
For the employers who offer their employees a 4-day workweek, they cited the following as benefits they experience. For those who are considering it, these are their desired outcomes of doing so.
Improved Work-Life Balance
A significant advantage of the four-day workweek is the potential for a better work-life balance. With a shorter workweek, employees can enjoy more leisure time. This can lead to increased job satisfaction and reduced burnout.
Increased Productivity
Surprisingly, a compressed workweek often leads to heightened productivity. When employees have fewer days in the office, they tend to focus more on essential tasks, reducing time-wasting activities. This can result in a more efficient use of work hours and, ultimately, a more productive workforce.
Attraction of Top Talent
The adoption of a four-day workweek can be a powerful employee recruitment tool. In a competitive job market, potential candidates are drawn to employers who offer unique and flexible benefits. Businesses offering this work arrangement are likely to stand out and attract top talent who value work-life balance.
Employee Retention
Once a company has recruited top talent, it’s essential to keep them. The four-day workweek can serve as a retention strategy. It ensures that employees are content with their work-life balance. Satisfied employees are more likely to stay with their current employer. This results in a reduced turnover and associated recruitment costs.
What Are the Potential Drawbacks?
Convincing decision-makers about the benefits can be a significant challenge. In fact, many employers, about 80%, are unconvinced. This can make implementing a four-day workweek difficult.
One of the primary concerns associated with a four-day workweek is the potential impact on business operations. Some companies worry that a reduced workweek may hinder their ability to meet customer demands.
The reasons employers choose not to offer a 4-day workweek break down thusly:
42% due to upper management disinterest
38% worry about widespread implementation challenges
36% due to potential negative impact on business operations
32% worry about the inability to support their customer base
Administrative burdens and potential costs also contribute to their hesitation.
What Is the Takeaway?
As they navigate the post-pandemic work landscape, businesses experiment with flexible work weeks. Plus, while some have already adopted a four-day work week, others are considering the shift.
Some choose to adopt a 4-day workweek as part of their employee recruitment strategy. To successfully do so, companies should consider their employees’ preferences, as well as the potential impact on the business operations. The four-day workweek may not be suitable for all organizations. However, it has the potential to revolutionize the way we view work and employment.
In conclusion, this is a promising recruitment strategy that can provide businesses with a competitive edge in the job market. Companies can use this innovative work arrangement to attract, retain, and nurture top talent. In the ever-changing landscape of recruitment and employment, the four-day workweek offers an exciting path forward.
Employee morale plays a pivotal role in shaping the dynamics and outcomes of a workplace. Simply put, when employees are content and motivated, they tend to be more engaged, creative, and productive.
Conversely, a dip in morale can lead to disengagement, increased absenteeism, and a higher turnover rate. All of which can spell trouble for an organization’s success.
Therefore, employers need to gauge and grasp the morale of their employees to foster a positive and thriving work atmosphere.
Chicago-based company, Launchways, has delved into the importance of measuring morale in the workplace. We offer this insight.
Why Measure Employee Morale?
Employee engagement is essential for a company’s success. To effectively attract and retain top talent, organizations should begin by assessing whether their current employees are happy. That helps employers know how to keep valuable employees.
Workplace morale affects the following:
Productivity and Performance: When employees are satisfied and motivated, they are more inclined to invest their best efforts and produce high-quality work.
Employee Retention: Employees who find content at work are less likely to seek opportunities elsewhere.
Engagement and Innovation: A positive work environment nurtures a culture of innovation and continuous improvement.
Measuring Employee Engagement
To gauge employee satisfaction, many employers continue to rely on employee engagement surveys. But lately, employee engagement has been at its lowest point in nearly ten years. Employers start to wonder if the usual surveys really show what employees think.
Instead of using the same old surveys, employers should think about new ways to see how engaged employees are. It’s also important to improve the surveys to make sure they show how employees truly feel. Here are a few ideas that can help employers better understand employee engagement.
Updating Employee Engagement Surveys
When done properly, regular employee surveys can still effectively measure employee engagement. A few factors to consider for updating your surveys:
Keep surveys short and timely. Send short 3-5 question polls for specific activities or occurrences. Reserve long surveys for annual or bi-annual reviews.
Be concise and clear about what you are asking. Simple questions often get the best answers.
Invite feedback and suggestions. Leaving an open-ended feedback section allows employees to provide additional information. This ensures they feel heard.
Although surveys are probably the most popular method for measuring employee satisfaction, they aren’t the only one. To get a holistic view of engagement in your organization, consider including the following options.
One-on-One Meetings
Many workers don’t feel heard when they only have a few pre-written multiple-choice answers to choose from. Conducting one-on-one interviews with employees offers valuable insights into their morale. Such interviews provide employees with a confidential space to express their concerns and emotions.
Companies should provide managers with the proper training to lead these meetings in a way that ensures employees feel heard and respected.
Company Forum or Chat Channel
Creating a “forum” where employees can discuss current business issues may promote broader discussions. This form of communication allows employers and HR leaders to identify current problems. They can use that information to initiate real conversations to work toward real solutions.
Tracking Metrics
Tracking employee behavior over time can serve as an indicator of morale. Consider monitoring the following and investigating their root causes.
Employee Turnover Rates
Absenteeism and Sick Leave
Performance Metrics
Identifying patterns can help organizations unearth and address underlying issues.
The Takeaway
Today’s employees know what their priorities are. By measuring employee engagement and morale, employers can improve their ability to attract and retain talent. This enhances the company culture and creates an environment where workers feel valued.
This, in turn, benefits not only employees but also the organization as a whole. In the grand scheme of things, the question “Are your employees happy?” should invariably top the priority list of every organization wishing to create a thriving and productive workplace. For more insight, check out Employer/Employee Relations: Who’s in Control?
The pendulum continues to swing. Going “back to normal” is a status many businesses long for even as they struggle to manage the “new normal.” With many workers insisting on the freedom they experienced working remotely, and employers calling for a return to their cultivated work culture, there is bound to be tension.
So, “Who’s in control of employer/employee relations?”
Employer/employee relations form the foundation of our modern workforce. By examining the current trends, we can gain insight into the evolving dynamics of employer/employee relations.
Remote Work and Flexible Arrangements
In recent decades, many trends have altered the employment landscape. Non-traditional work arrangements, such as freelance and contract work, have blurred the lines between traditional employer and employee roles. This results in new challenges in determining control and responsibility.
Remote work often requires a shift in management strategies, with a greater emphasis on results and performance. However, this shift means that employees may feel the need to be constantly connected to work. This sometimes blurs the line between their personal and professional life.
While workers have more control over their work environments and schedules, employers may fear that this lack of oversight could result in less productivity. The challenge is finding a balance. The desired solution would allow employees the flexibility they desire while ensuring employers can maintain control over work outcomes.
Mental Health Matters
Additionally, mental health has emerged as a prominent issue. More people are reporting feelings of depression and anxiety. Rates of drug abuse, addiction, and suicide have been steadily increasing. Although many are becoming more aware of mental illnesses, work-related stress, and burnout, businesses continue to find practical solutions to be a challenge.
Employers recognize that overly strict regulation can lead to feelings of employee dissatisfaction. That results in high turnover rates. In fact, the Great Resignation and quiet quitting trends have been linked to the level of support an employer offers its workers.
Workers prioritize their mental well-being and the quality of the work culture as they seek opportunities. Therefore, wellness and mental health have become important recruitment strategies for businesses.
Major health events, including mental health ones, change everything in a person’s life. As employers and HR advisors, we need to take the health of our workers seriously.
Balancing Employer and Employee Interests
With the increased attention that employee needs are getting, more employers are aware than ever before. Unfortunately, inflation has made wage increases difficult. Plus, more inclusive benefit options are increasingly expected to attract new talent. It has become challenging for many employers to keep up.
Employers are vested in ensuring their businesses’ productivity and profitability. This often involves making decisions that affect employee workloads, compensation, and job security. In contrast, employees seek job satisfaction, fair compensation, and security.
Employers often feel torn between wanting to support their employees and wishing to avoid price increases. This is clear in the healthcare benefits landscape. Balancing these sometimes conflicting interests is essential for a healthy workplace.
Where Do We Go From Here?
Although the pandemic redefined work dynamics, there’s a real sense of cooperation and negotiation. It’s in the best interests of both employers and employees to work for a mutually beneficial arrangement.
Employers can engage in open dialogue with their workforce. They can seek feedback and involve employees in decision-making processes that affect them. This inclusive approach can enhance employee satisfaction and reduce feelings of powerlessness.
When employees feel included in the process, they are more likely to cooperate. They may support initiatives that may initially appear restrictive.
As businesses weigh their needs with those of their employees, it becomes increasingly apparent. This support is required to attract and secure top talent in a competitive environment.
Over the coming weeks, we’ll be delving into a few innovative solutions for improving employer/employee relations. We’ll discuss measuring employee engagement as well as creative recruitment strategies.
Overall, the employer/employee relationship is in a decent place, with neither in the position to make many demands. That is a pretty good way to start.
The American workplace has long been an evolving landscape. From the industrial revolution to our contemporary global arena, businesses have had to become more flexible to adapt to the recent challenges. Since the pandemic, more than half of the workforce demographic of 18 to 25-year-olds have been questioning whether they are in the right occupation.
In fact, studies show that not only are 54% of Generation Z workers considering a new career, but 41% of the global workforce may also be handing in their resignation.
Since employee retention is a key factor in the success of any company, it’s important for employers to make sure that their employees are happy and satisfied with the work they do.
What Is the Great Reshuffle?
The Great Reshuffle is the process of adapting to the changing workplace. It is a natural consequence as workers search for jobs they feel better suit their lifestyles, values, and needs. Although individual requirements vary, having a flexible work environment has become one of the primary considerations for many.
If companies want their employees to stay, they need to make workers feel like they are appreciated and are part of something bigger. To keep employees happy, consider the following tips.
Offer Competitive Salaries and Benefits
A company should offer competitive salaries and benefits to their employees. Offering competitive salaries is one way that employers can help attract and retain the best talent. Higher pay means a higher quality of life, which in turn leads to more motivated workers who are more productive.
Receive and Respond to Feedback
Feedback is a two-way street. Employers should not only be giving feedback to their employees, but they should also be receiving feedback from them. Feedback can help employers learn what they are doing well and what they need to improve on. It also provides them with information regarding employee needs.
Employees are more likely to feel engaged in their work when they have the opportunity to give feedback to their employer and know that the employer is listening and will take it into consideration. This can lead to increased productivity, better morale, and a stronger sense of community among the employees.
Offer a Flexible Work Environment
The workplace should be a place where employees can work in an environment that is most suitable for them. The environment should be flexible and offer the employee the opportunity to work remotely if possible.
The benefits of a flexible work environment are numerous. Employees are able to focus better when they know they have the freedom to choose where they want to work from. They also feel more productive and satisfied with their jobs as compared to those who don’t have a flexible workplace and are stuck in one place throughout their shift.
Create an Inclusive Environment
Fulfilling work is one of the most important aspects for both Millennials and Gen Z. As such, it is important to offer them an environment that allows them to feel like they make a difference through their efforts.
A good work culture is one where the employees feel appreciated and are given opportunities to grow in their positions. This can be accomplished by having an open office space with a lot of natural light, and by offering training opportunities for employees.
Show Sufficient Appreciation for Hard Work
Employers should show ample appreciation for hard work. This is not to say that employers should be giving their employees gifts every day or an over-inflated paycheck every month. However, they can do things like giving an employee a day off or telling them how much they appreciate their work and all that they do. A simple, heartfelt “thank you” can go a long way.
There are many reasons why employee retention is one of the
most important considerations for your organization. Among these reasons, which
include employee satisfaction and team morale, the biggest reason—or at least
the easiest to measure—is cost.
And these costs also include the knowledge and experience
that an employee gained while at the company; a loss that will turn into a several
month-long learning curve for whoever replaces them.
Other reasons that employee retention should be carefully
considered are that the organization’s performance and reputation could suffer
with a lot of turnover, and that competition to hang on to top talent is
heating up in a country with the lowest unemployment rate in decades.
So how many people are actually leaving their jobs, and why?
What are the turnover costs for companies? And what can you do to revamp your
retention efforts?
Here’s what you need to know about why employee retention is
your best weapon in the war for talent.
Employee
retention stats
A BambooHR onboarding survey, which surveyed over 1,000 U.S.
employees, showed that 31%
of workers have left a job within the first
six months, and 68% of those workers have left within three. And data from the
Bureau of Labor Statistics (BLS) shows that since January 2019, every month
around 3.5
million employees have left their jobs voluntary. BLS
data from 2018 showed workers had been with their current employer for an average of
4.2 years.
The BLS also reported that workers in the baby boom
generation were found to hold an average of just under 12 jobs throughout his or her
lifetime, between ages 18 and 50. However, nearly half of the 12
jobs were held between ages 18 and 24. This means that younger workers are more
likely to shift more often, and so retention strategies should put emphasis on
what would appeal to this younger population.
Why
do employees leave?
It’s no surprise, really, that modern workers are hard to
retain. It’s easier now than it’s ever been to research a new company or
refresh a job board each and every day. With the endless resource that is the
Internet, workers are learning more about what’s fair and what isn’t, what they
could be getting paid versus what they are making.
But, the reason for the two-weeks’ notice has to stem from
something specific and not so broad as “I wanted something better.” So what
drives employees to leave?
The BambooHR survey mentioned above also reported the top
three reasons that surveyed employees left their positions within the first six
months:
They were no longer interested in
the work (28%)
Their jobs were not what they had
expected in the interview (26%)
They didn’t like their boss (23%)
This feedback shows that an important part of a new job is
transparency: if the work was nothing like what was described, employees aren’t
going to feel great about that. If they deal with a rude manager, that’s
another red flag. And when it’s only been a few months, they may feel less
inclined to stick it out—they are less attached or invested in the company at
this point than they would be years in.
As SHRM points out, other reasons that employees leave are because they found a better, more competitive alternative (perhaps a company that provides more benefits or higher salaries); they had a “predetermined plan” to quit because of life circumstances, such as going to get a degree or having a family; or they had a frustrating experience that led them to act on impulse. An example of the latter could be that they didn’t receive a promotion or raise when they thought they deserved it.
In addition, a survey from America’s Health Insurance Plan (AHIP) showed that 56% of respondents said health coverage was a key factor in whether or not they stayed at their current job. According to a SHRM survey, 92% of employees said that benefits remain important to their job satisfaction, and that 29% of employees cited their benefits package as one of the top reasons to look for another position within the next year.
The cost of turnover
The average cost per hire is over $4,000, according to a study from the SHRM, and it takes 42 days on average to fill a given position. Whether or not that number would be much higher or lower for your company, there’s no arguing that costs are substantial. In addition to these financial setbacks, there’s no one in the role doing the work, putting strain on your other employees.
Also keep
in mind that those covering the work while a position is being filled may
expect to be compensated for the extra work, adding to the costs even more. So
needless to say, turnover is not only frustrating, reputation-hurting, and
time-consuming, it’s also expensive.
How to revamp your employee
retention strategy
To win the
war for talent that’s currently going on in the U.S., it’s time to revamp your
retention strategy. Based on the common reasons people leave their jobs above,
consider these methods:
1. Clearly communicate job duties
and expectations
As already
mentioned, it can be upsetting or surprising to a new hire if the duties
discussed in the interview were not accurate to the job they suddenly find
themselves in. This is why it’s not always enough for an HR rep to do the
interview and why a manager or colleague who will have similar duties should be
engaged in the candidate-seeking process.
2. Update your benefits package
Because workers hold health and other benefits as a top priority in their decision to stay at their jobs, 85% of HR professionals say that they use benefits as a strategic tool to positively impact recruitment and retention, according to an SHRM benefits survey. For example, new trends include updates to parental benefits, such as maternity and paternity leave and adoption leave.
But
another part of updating your employee benefits is about work-life balance.
Modern employees look for jobs with flexibility offerings, such as working from
home or different working hours. These considerations are especially important
when catering to the younger generations, who value workplace culture and
flexibility.
According
to the Deloitte Global Millennial Survey
2019, half of
millennials surveyed said that they would consider working in the gig economy.
This lifestyle appealed to them because of the chance to earn more money (58%),
to work their own hours (41%) or to achieve better work/life balance (37%).
3. Encourage position transfers
within the company
Another
smart move to better retain and satisfy employees is to discuss their end goals
and their satisfaction in their current roles, and encourage them to look into
other departments if they’re not happy. Some companies are implementing this
idea into their policies and procedures, so employees can easily look at their
handbook and find out if this is an option.
4. Talk about pay equality and
diversity
Pay
equality and diversity are two hot topics in today’s workplace culture. Young
employees want to know that they’re being compensated for their hard work and
dedication, and it will be easy for them to tell if decisions like wage range
is based on discriminatory factors.
If this
hasn’t been a focus yet for your company, start by offering trainings or
seminars where employees can learn or share. Express your commitment to these
issues so that employees know you’re thinking about it.
5. Ask for feedback
Another
tried-and-true way to get inside the heads of your employees is to simply ask
them. Don’t try to guess how happy they are or how satisfied they are with
their work or department. Implement employee surveys that are anonymous so they
feel comfortable sharing. Hold discussions where employees can provide their
opinions, thoughts, and feelings about the company and what could be improved.
It also
can’t hurt to introduce new perks in the office, like a Friday lunchtime game
or regular outings after work. These opportunities for interaction can help
leaders become aware of issues or successes.
Key takeaways
Retention
is key with the current dips in the unemployment rate, which are only getting
lower. You need to create a retention plan that addresses real concerns that
your employees are having.
Remember
to:
Clearly
communicate expectations during interviews and throughout the candidate-seeking
process.
Update
your benefits package (including work-life balance and flexibility benefits)
regularly, based on what your workforce cares about.
Encourage
position transfers within the company.
Discuss
and address pay equality and diversity concerns that arise all the time in
modern workplaces.
Involve
employees in decision-making so that you can take their feedback into account.
These strategies will help you to stand out from competitors and retain quality talent. Make sure you give these considerations due care, and your overall workplace environment will improve (not to mention you’ll save on the high costs of filling positions that experience turnover regularly).
