By | Jonathan Brooks | www.entrepreneur.com
Nicknamed “The Great Resignation,” many businesses are grappling with employee retention and struggling to hire. The U.S. Labor Department’s monthly Job Openings and Labor Turnover Survey reported there were 10.4 million job openings in August and more than 4.3 million people leaving their jobs. These statistics are especially alarming for small businesses that may not be able to compete with competitive wages and benefits like the big box corporations. Coupled with shipping and service delays, business owners are also at risk of losing loyal customers due to these unforeseen circumstances.
The first step business owners should take if they are struggling to hire is to focus on retaining their valuable, current employees. Poor pay, lack of growth opportunities and not feeling valued are some of the most common reasons that employees leave a job. A great place to start working on retention is asking employees to fill out anonymous feedback and talking to them every quarter about their career goals. Business owners should encourage their workers to share their aspirations and values. If small businesses are receiving negative feedback, it’s important to take swift action to implement changes to make the staff feel seen.
The pandemic had countless effects on work structures, with one of the biggest being the move to a more flexible work environment. Small businesses that can offer flexibility to their employees should do so to provide a better work-life balance. Otherwise, turnover can start to happen when a company is not able to keep up with the changing marketplace.