Over the past year, people have left their jobs in record numbers. Some suggest that the “Great Resignation” will evolve into a “Sustained Resignation” – and permanently reset companies’ baseline rates of turnover.
There are many theories on what is leading to the increase in turnover. Here’s the theory that makes the most sense to us: remote work, although often desired by employees, can lead to weaker ties to fellow colleagues and, ultimately, to the organization. At the same time, employees are no longer constrained by geography and have more options. In short, people are feeling less connected to their companies, and simultaneously while being solicited for more opportunities, increasing the likelihood they will take a new role elsewhere that either sounds slightly more interesting or pays slightly better.
Companies everywhere are responding to this increase in turnover with a renewed focus on recruitment. However, we believe companies – particularly high-growth companies – can’t simply hire their way out of this challenge. To scale, they must also focus on employee retention. In a recent roundtable discussion with human capital leaders across the Summit Partners network, we discussed the art and science of retention and shared strategies to help combat attrition. Below are three key recommendations that emerged.