Employee job dissatisfaction is running high these days, meaning that, as the economy recovers, many workers are more likely to seek new employment opportunities. This finding, from a MetLife survey, indicates employers would be well-advised to work now on strategies geared toward improving employee loyalty and retention down the road.
The MetLife survey, its 9th Annual Study of Employee Benefit Trends, reports that upwards of one in three employees hopes to be working elsewhere in the next 12 months. The specific percentage varies from 34% to 38%, depending on company size. Given this inclination to bolt from their current employers, it is not surprising that the share of employees who express a very strong sense of loyalty to their current employer has declined from previously higher levels.
Employers, understandably focused on recession-related business issues, may be unaware of this change in employee perception. Many employers still report strong loyalty toward employees even as fewer workers report the same level of commitment in return.
Employers need to be aware of changing employee sentiment and act now to avoid significant retention issues when business picks up. As the economy rebounds, companies can ill afford to lose staff, particularly top performers.
Reviewing benefit design and communication now can help protect retention; for one perspective on benefit messaging and retirement, see Navigating Retirement Anxiety and Employer Health Benefits.
Action steps employers should take
- Identify top performers and other employees who, for various reasons, you would hate to lose.
- Make whatever tweaks you can afford to the compensation packages of these employees.
- Employee loyalty isn't created by money alone. Nurture an "all for one and one for all" attitude by providing access to owners and executives, fostering teamwork, and making corporate strategies and mission a shared vision to the extent possible.
- Look for non-monetary ways to compensate employees, like offering more flexible schedules where possible.
- Show employees that their company appreciates them through individual and group recognition.
- Make the workplace a place where employees want to be by cultivating a positive, mutually supportive corporate culture.
- Invest in employee training, giving workers the opportunity to advance and your company better and more productive performers. For ideas on how plan design and benefits changes affect retention, see Health Plan Changes and Employee Retention.
As the MetLife survey notes, "A loyal and satisfied workforce is part of the foundation of business growth. Widening cracks in this foundation may force employers to pay a price in reduced retention and productivity when the job market improves." Avoid this potentially expensive price tag for your company tomorrow by attending to issues of employee loyalty, satisfaction, and morale today.
Frequently Asked Questions
How can small employers identify which employees are most at risk of leaving?
Start with performance reviews, recent changes in engagement or productivity, and feedback from managers to spot top performers and those showing signs of disengagement.
Are non-monetary rewards really effective for retention?
Yes; flexible schedules, recognition, career development, and a supportive culture often improve loyalty without large payroll increases.
What is a simple first step companies can take now?
Conduct a quick retention audit: identify critical roles, talk with managers about retention risks, and make targeted, affordable adjustments to keep key staff.