As we move through the aftermath economy and the likelihood of a recession looms, CEOs are bracing for economic softness. But instead of screeching to a halt, it’s important for leaders to use this time to ramp up for the next growth cycle. By far, the best way CEOs can prepare for the next wave of acceleration is by focusing on their workforce velocity.
What is workforce velocity?
Workforce velocity is the movement of workers. It includes employees who are new hires, quit, and/or retire. A company with high workforce velocity may be experiencing rapid growth, but also excessive attrition and turnover.
In the November 2023 U.S. Bureau of Labor Statistics’ report, Job Openings and Labor Turnover Survey, quit rates are still historically high. Despite a continued economic slowdown, employees are still confident in their ability to secure better positions and leaders are left backfilling vacancies.
These retention issues are not only taking a toll on culture, but they are also incurring hard costs in the form of recruiting, salary negotiations, and training.
What is causing a workforce velocity issue?
Skyrocketing workforce velocity speaks to workers’ unprecedented transparency into new opportunities, as well as their ability to advertise their capabilities like never before.
Employees can quickly post their resumes online and showcase examples of their best work to employers across the world. They can quickly find multiple openings that match their skillset and filter through job openings to find a position that meet their goals for increased flexibility, remote work, salary, and benefits.
Strategies to combat high workforce velocity
So how do small to mid-sized companies compete to find the best employees and retain them? Consider the following strategies to combat high employee turnover and create a cohesive, positive team:
Employee Engagement
- Creating a positive work environment to make the employees feel valued and engaged.
- Encouraging open communication.
- Recognize and reward employees for their contributions.
Competitive salaries and benefits
- Ensure adequate competitive salaries and benefits packages.
- Regular review for compensation adjustment.
- Professional development opportunities:
- Offer training programs and career development plans.
Work-Life Balance
- Encourage a healthy work-life balance to prevent burnout.
- Consider flexible work arrangements, availability of remote work options.
Clear Communication of Expectations
- Clearly communicate job responsibilities, expectations, and performance standards.
- Provide regular feedback on performance and conduct performance evaluations.
Recognition and Rewards
- Recognize and reward employees for their achievements and milestones.
- Implement a formal employee recognition program.
Team Building and Social Events
- Foster a sense of community within the organization through team-building activities and social events.
- Encourage team collaboration and create a positive team culture.
Employee Well-being
- Prioritize employee well-being by offering wellness programs and initiatives.
- Provide resources for managing stress and promoting mental health.
Effective Onboarding
- Ensure a thorough and effective onboarding process for new employees.
- Help new hires feel integrated into the team and understand the company culture.
Exit Interviews
- Conduct exit interviews to understand the reasons behind employee departures.
- Use feedback from exit interviews to identify areas for improvement and make necessary changes.
Regular one-on-one meeting
- Schedule regular one-on-one meetings with employees to discuss their goals, concerns, and career development.
By implementing a combination of these strategies, leaders can improve employee satisfaction and reduce turnover. As we all know, people don’t quit bad jobs, they quit bad bosses. As we enter the next growth cycle, we can expect the demand for talent to increase, and the quit rate to hold strong. Workforce velocity will only gain speed and the only way is to slow it down and stay ahead. For that leaders must create an environment where workers are secure and engaged.
