THE LATEST COMPANY CULTURE & EMPLOYEE RETENTION TRENDS
Insight and action to help you create a workplace that attracts and keeps the best talent.
EMPLOYEE ENGAGEMENT TREND
The 'Big Stay' is Here
Employee quit rates have been declining since The Great Resignation—but so has employee favorability. A strong retention strategy will help you engage employees in the shortterm and retain them in the long term.
Now is Not the Time to Find a New Job, Employees Say
When quit rates were at their peak, around November 2021 to April 2022, we saw a peak agreement that, “Now is a good time to find a new job.” When employees are not confident in the job market, they are more likely to stay at their current organization.
In 2023, employee engagement declined for the first time in almost 10 years according to Quantum Workplace data. The proportion of employees who were highly engaged dropped to 76.1%, just below the engagement levels seen in 2020. This decline reflects broader challenges to the workplace in a post-pandemic landscape including an emphasis on efficiency and productivity, a push to return to the office, a softening labor market, and inflation that outpaces wage growth.
Employees will likely tell you when they’re a retention risk. 62% of employees discussed their decision to leave the organization with a manager or coworker prior to leaving.
And if they don’t outright tell you, there are some signals you can look for.
1 in 3 employees leave due to lack of fair pay.
Employees feel they’re not paid fairly.
Only 39% of employees were recognized for their contributions in the three months prior to their last job departure.
Employees don’t feel recognized for their work.
Only 25% of employees had a growth discussion with someone in the organization in the 3 months leading up to their last job departure.
Employees don’t feel they have growth opportunities.
“Our Q1 turnover rate in 2023 after a full survey and a pulse survey was 14.33%. That is unbelievably low, specifically for our industry in warehousing and transportation.”
Jill Spohn Leadership Development Manager at ODW Logistics
In fact, research from HR.com reveals that 85% of senior executives say that retention is a top 10 issue.
Your company retention strategy shouldn’t just be about reducing turnover in the moment. It should work to build an engaged culture of high performers today – and well into the future. If you continue to prioritize employee retention, you’ll set your organization up for success regardless of what lies ahead.
A strong employee retention strategy can:
Boost performance
Increase employee engagement
Retain high performers for the long-term
Attract top talent
Retention must be a top priority regardless of the job market and it’s critical to the success of your business. The good news is most unwanted turnover is both predictable and preventable.
The right tools will help you identify why top talent is walking out the door and predict a turnover crisis so you can act before it’s too late.
Thinking about your listening strategy? In this video, I talk about taking a deeper dive into why employees stay and why they’re leaving.
Check out our list of resources on the right that’ll help you build and maintain a magnetic culture at your organization.
An engaging culture is critical to business success. Your culture is what keeps top talent from walking out the door and what makescandidates strive to work for you.
According to employees, culture is a day-by-day, moment-by-moment experience. Two-thirds of employees say culture positively impacts their work and behavior every day.
Employees say that they feel culture the strongest through the company’s mission, how they’re recognized, and how the organization manages performance. Culture is less about the physical workspace.
Engaged employees and disengaged employees have different views on their organizational culture.Engaged employees are more likely to say they have a positive culture that impacts their work and behaviors, and less likely to leave for a better workplace culture.Disengaged employees are 2.6X more likely to leave their company for a better culture.
Ideal Cultures are Collaborative, Flexible, and Inclusive
When asked to describe an ideal culture, highly engaged and not highly engaged employees had similar answers. Employees describe their ideal culture as inclusive, fun, collaborative, friendly, flexible, and diverse.
Employees say everyone plays a role in creating a shaping culture. But it starts fromthe top, with 83% of employees saying leadership plays a leading role.
“We have two organizational values that directly align to our Quantum Workplace initiatives: ‘We Listen’ and ‘We’re Respectfully Blunt.’ These values are at the core of nearly everything we do, and we strongly believe that everyone has a role to play, from both the top down and bottom up.”
Janell Hager Senior Director of Global Talent Management & Organizational Development at Hudl
An engaging workplace culture is now table stakes. It’s the bare minimum organizations need to attract and retain top talent, regardless of the current labor market.
Gone are the days when you could lure candidates with a fat paycheck and a fancy title. Employees are looking for more than a job. They want a career that aligns with their goals and expectations.
Employees want a culture where they are recognized for their impact on the organization and receive honest feedback on how they can improve. They want a culture that motivates them to do great work. And they want a culture that strengthens their connection to their organization and mission.
Whether or not you’re being intentional with your workplace culture, it still exists. That’s why it’s imperative to shape your culture to keep your best employees and attract excellent candidates who want to join your team.
How do you shape workplace culture?
Aim your culture strategies at creating an engaging work environment.
Strengthen culture with your approach to performance through feedback and alignment.
Build trust between leaders and employees by transparent, open communication.
Recognize employees for great work, especially connected to organizational values.
Check out our list of resources on the right that’ll help you build and maintain a magnetic culture at your organization.
