We have all heard of the “Great Resignation,” a term coined to describe the millions of employees that left their jobs since the onset of the COVID-19 pandemic in 2020. Many employees who moved on to another job are having second thoughts about their decision — a new phenomenon that is being referred to as the “Great Regret.”
Nearly three quarters of respondents to a survey conducted by career website, Muse, said that their new jobs were not what they expected. This “quitter’s remorse” is also affecting employers, who are currently showing more than 11 million job openings nationwide, according to the Bureau of Labor Statistics.
The current employee-driven jobs market may be unsettling, but it presents an opportunity for plan sponsors to strengthen their benefits offerings and improve participant communications to become an employer of choice for job seekers.
Why do employees stay or leave?
While about 40% of employees say they plan to leave their jobs within the next year according to a recent survey conducted by talent acquisition firm, Leveler, Gen Z workers are leading that drive, as 65% plan to leave for other opportunities. Factors that tend to keep employees at their current job include salary and bonus levels that are too good to leave, paid time off and flexibility and the potential for upward mobility.
Leveler found that internal mobility is a particularly important factor in retaining talent. Thirty-three percent of employees interested in a new role said they would trade a pay cut for upward mobility and 61% said that they would leave if the company did not offer opportunities for promotion.
The Muse survey also found that about 25% of unhappy workers felt that they had not thoroughly evaluated the pros and cons before taking a new job. Boomerang employees — those who leave a company, but later return — appear to be on the rise. LinkedIn recently reported approximately 4% of employees who leave a job end up coming back. And according to LinkedIn, it takes an average of 17 months for an employee to come back to his or her original job, but many return in less than one year.
Getting creative with benefits
Employers expect to have employment issues over the next several years and see their company’s defined contribution plan as an important tool to attract and retain talent. Companies that boost flexibility and choice in their benefit plans may separate themselves from the competition and better meet employees’ needs in a tight labor market. Some of the leading strategies include digital tools to help employees with budgeting and spending through their financial wellness programs and targeted communication to support program changes.
Insight: Do your research and communicate effectively
The current labor market is one of the toughest we have seen in several decades. It is critical that plan sponsors have a detailed understanding of their employee demographics in order to offer the right combination of salary, benefits and perks. Newer employees often lump perks and benefits together and many fail to realize that things like free snacks in the break room are perks, while the ability to redirect 401(k) contributions to student loan repayments is a benefit. Targeted and frequent communications can be an effective way to help specific segments of your employee population, as well as job seekers, better understand your offerings.
Related Read: What the Great Resignation Means for 401(k) Accounts
For more information, contact James Quaid at [email protected], or call him at 312.670.7444. Visit ORBA.com to learn more about our Employee Benefit Plans Services.