The Great Attrition

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​These are great recommendations on what to do about ‘The Great Attrition’ labor shortage.  

In addition, one of the top pieces of the puzzle is employees leaving for higher salaries (according to a research Society of Human Resource Management study, 53% of individuals who exited, left their job for higher pay). The first step to combat this is having accurate data of what the market is actually paying. Then, you can make an educated decision on next steps. 

Of course, pay is not everything, but data shows it's a huge piece of the pie and needs to be addressed as part of the overall strategy.  In our partnership with PayScale, we have a great process in place that is helping organizations address this with accurate salary data to the month. In addition to the compensation market analysis provided, we also partner to support a healthy path forward to address these issues head-on.

If pay is not able to be competitive with the market, there needs to be additional strategy of other creative offerings that matter to the group of employees.  For example, offering more flexible work options or increased benefits such as more PTO.  One innovative and cost-effective way to do this is offer what is known as VTO (Voluntary Time Off).  The way this can work is an employee can elect to take up to one more week off in the year but forfeits the pay (a small % each week) that is taken out in account for the extra week of PTO.  This can be meaningful to many employees, but they still keep their regular paycheck and do not have to go without pay those days.
 
In addition to this, many employees (especially the highest performers), are not just looking at their current salary but also increased responsibility and the potential of development and salary growth in the coming years.  It is important that organizations can communicate a path forward as well as offer career development opportunities to achieve this.  This does not have to cost a lot but can even include offerings such things as a mentor program, career development focused lunch and learns, leadership book study group to name a few. 

By providing fair pay, flexibility and a strong development culture a company will be well on their way to continuously engaging and retraining their talent!   

Author: Erika Butler, ​CEO

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