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Stephanie Warlick

How Small Businesses Can Navigate the Aftermath of the Great Resignation and Capitalize on the “Big Stay” and turning their focus to the Great Retention

Introduction


The COVID-19 pandemic drastically transformed both our personal lives and the workplace. One of the most significant challenges businesses faced during this time was the "Great Resignation," where millions of employees voluntarily left their jobs in search of better work-life balance and personal fulfillment. The intensity of the Great Resignation has cooled. The Bureau of Labor Statistics survey JOLTS report quits in August were down from 3.2 million to 3.1 million in July. The situation remains fragile. While quits are down, the usual labor market surge of September in preparation of holiday temporary work is expected to have he usual uptick. Many employees are still re-evaluating their career choices, making it crucial for small businesses to shift focus toward retention to safeguard their teams.


For small businesses, employee retention is critical for maintaining operations and staying competitive. In this article, we will explore how small businesses can turn the tide from resignation to "Great Retention" by focusing on the needs and well-being of their employees, creating a workplace where people are motivated to stay and grow.


Why Retention Still Matters Post-Great Resignation


Although the Great Resignation may no longer be dominating headlines, its effects continue to ripple through the job market. A recent study shows that while voluntary quit rates have decreased, 47% of employees are still considering changing jobs within the next year due to dissatisfaction with their current roles. Another report from the U.S. Bureau of Labor Statistics highlights that over 3.6 million workers quit their jobs as recently as May 2023. This underscores the fragile nature of today’s workforce, where retaining talent is more critical than ever.


For small businesses, employee retention isn’t just about keeping the business running—it’s about staying competitive in a job market where turnover can cost companies an estimated 33% of a worker’s annual salary to replace them. Businesses, especially small ones, must take proactive steps to ensure employee retention. The focus needs to shift from worrying about mass resignations to creating an environment that fosters loyalty and engagement.


Understanding Employee Priorities


In today’s workforce, employees are looking for more than just a paycheck. Surveys show that many workers are leaving or considering leaving their jobs not for financial reasons but to seek better flexibility, well-being, and career growth. According to recent studies, 88% of employees value non-financial benefits such as flexible working hours, remote work options, and a positive work environment over higher pay.

For small businesses, this presents a unique opportunity. You don’t need the deep pockets of large corporations to keep your team happy and engaged. By focusing on what employees truly value, you can offer a compelling work experience that goes beyond salary.

Some key areas to focus on include:

  • Flexible Working Arrangements: More than 70% of employees still desire flexible work options post-pandemic. Allowing remote work or hybrid models can increase satisfaction and reduce turnover.

  • Support for Well-being: Mental health and work-life balance are major concerns. Over 76% of employees report that mental health support is a key factor in staying with their current employer. Offering mental health resources or simply respecting boundaries, like no after-hours emails, can show your commitment to their well-being.

  • Opportunities for Growth: Employees who see a future in your company are more likely to stay. A Gallup study shows that 87% of millennials rate career development opportunities as essential in a job. Offering coaching, mentoring, and skill development opportunities can help them advance in their careers.


Creating a Workplace That Attracts Loyalty


Once you understand what your employees value, the next step is to implement strategies that create a workplace where they feel engaged, supported, and motivated to stay. The beauty of a small business is that you can be more agile and personalized in your approach.

Here are a few ways to build loyalty and trust:

  • Foster Open Communication: Employees feel more connected when they can voice their opinions and concerns. Regularly ask for feedback through surveys or one-on-one conversations, and act on it. This will show that you value their input. Over 55% of employees say they would stay longer at a company that actively seeks and implements feedback.

  • Personalized Flexibility: Recognize that different employees have different needs. While some may prefer remote work, others might need flexible hours for caregiving. Tailor flexibility to individual circumstances to show genuine care for your team's well-being.

  • Promote a Healthy Work-Life Balance: Overworked employees are more likely to burn out and leave. Research shows that 75% of employees who experience burnout are more likely to quit. Set clear boundaries for work hours and encourage time off to recharge. Ensuring employees aren’t overloaded with tasks will lead to happier, more productive workers.


Taking Action to Retain Employees


Retention is not just about implementing policies; it’s about creating a culture where employees feel valued and supported from the moment they join your business. By acting on feedback, offering opportunities for growth, and ensuring flexibility, you can build a strong retention strategy.

Here are some actionable steps:

  • Gather and Act on Feedback: Use anonymous surveys or feedback sessions to understand your employees' concerns and desires. The key is to act on this feedback—employees want to see that their opinions lead to real change.

  • Invest in Employee Development: Offering training and mentoring opportunities helps employees feel they are progressing in their careers. For small businesses, coaching programs can be a cost-effective way to build skills and show commitment to employee growth.

  • Start on Day One: A strong retention strategy begins with onboarding. Make sure new hires feel welcomed, supported, and clear on the growth opportunities within your company from their first day.

  • Finding Purpose: Help employees find their purpose and align their personal goals with the mission of the organization.


Conclusion


Although the Great Resignation may have settled, the job market remains fragile, with many employees still considering their options. This creates an opportunity for small businesses to focus on retention and build an environment where people want to stay. Understanding that employees today value flexibility, well-being, and career development more than ever will allow you to craft a work environment that people are eager to be part of.


By prioritizing communication, offering flexibility, and investing in growth, small businesses can not only retain their current talent but also attract new top performers. The key to long-term success lies in turning the Great Resignation into the Great Retention by committing to your employees' needs and creating a culture of loyalty and engagement.


Information gathered from SHRM

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