Many employers have responded to the ‘Great Resignation’ by raising pay and improving benefits, but a study of 2,800 global employees by United Minds found that the top predictor of employee retention is having a positive working environment.
This was followed by wanting to feel appreciated and motivated by their contributions at work.
The study found that 70% of employees who feel motivated by their jobs are satisfied at work, compared to 6% who are not motivated. Also, United Minds identified that employees with a positive working environment were seven times more likely to stay in their job.
But a concerning finding from the study is that 30% of employees are not energized to do their best work. This is because managers were committed to their success (30%), they were not getting enough feedback (29%) and they were not being supported in day-to-day activities (29%).
United Minds CEO Kate Bullinger explains: “Our research shows employees want a fair deal. They want a culture that’s inclusive and safe. And they want agency to do their work on their terms.
“However, often the missing link in building a loyal and thriving workforce is empowering people to do work that enriches their lives.
“This is the moment for companies to re-imagine their employee experience for a much different employee-employer relationship in the future.”
Another interesting finding from United Minds was that flexible working was not a high predictor of employee retention. Instead, workers are more interested in work-life balance and being trusted at work.
Tips for employers
As a result, United Minds recommends that companies really focus on training managers and ensuring they are contributing to furthering the company culture. Leaders may set up the policies, but managers need to make sure the policies are enacted and that they support their teams better.
For United Minds, employers must “create an environment where: all employees are treated fairly in all aspects of work, work is tied to meaning and purpose, work-life balance is facilitated through flexibility and autonomy, and deep fun is prioritized as a shared responsibility.
“When they don’t, it becomes a big reputational and cultural risk,” as well as financially damaging since replacing employees can cost up to 400% of their salary.
Employee experience tech, such as Qualtrics, Beezy, and WorkBuzz, can help here to get employers on the right track. It can also enable them to avoid falling victim to the ‘Great Resignation’ by only focusing on pay and benefits.
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