Casting her eye over the latest data on post-pandemic resignations in the US, Natalie Baumgartner sees many struggling companies. “Organisations are in tremendous pain,” says the chief workforce scientist at Achievers, an employee engagement software provider. “What they’re seeing in terms of their [staff] turnover is exorbitantly costly.”
Such a high volume of departures has not been seen for some time. Some 4.5mn people quit their jobs in March, according to the US Labor Department, leaving 11.5mn unfilled posts — the highest level since December 2000. And, while better pay prompts some to switch jobs, prominent among the forces driving the so-called “great resignation” is the overwhelming stress that leaves workers physically and emotionally exhausted: burnout.
Some research suggests burnout could even rank higher than pay on the list of what prompts a job change. A 2021 study of 200 executives by the Society for Human Resource Management found that, while 53 per cent of respondents said “better compensation” had prompted their job search, 43 per cent cited “better work-life balance”.
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Other SHRM research last year found that 50 per cent of Americans said they felt burnt out from work in the previous two weeks, with 57 per cent saying they were mentally and physically exhausted and 51 per cent that they were emotionally drained. Workplace chat app Slack found that, in January and February, work-related stress and anxiety among knowledge workers had hit the highest levels since its survey started in 2020.
Growing job vacancies make things even worse for those who remain. Half of those SHRM polled said they had been required to take on more work and responsibilities.
All this means employers need to take action, says Baumgartner. “People are the fuel for companies,” she argues. “So we’ve got to figure this out fast.”
First, says workplace futurist Kerry Hannon, companies need to increase work-time flexibility. “It’s something people value more than a pay cheque or even a bump up in pay,” she says. “You can offer free lunch and all kinds of great things but it’s this lure of flexibility that really keeps people on the job.”
Flexibility can mean periods away from work. Citi, a US bank, last year started to offer a 12-week sabbatical paid at 25 per cent of base salary to employees in North America with five years’ service, with no restrictions on how to spend the time off.
The pandemic has also highlighted the need for companies to provide more caregiving support, and not just for employees with young children but also those with sick or elderly relatives.
These programmes come with a price tag, whether in hiring mental health professionals or giving extra time off, but can also produce benefits in the form of higher retention and productivity or lower absenteeism.
“Employers, today, are running spreadsheets to determine if the cost of providing these services reduces turnover, helps workers be more productive, and aids mental wellbeing,” says Jim Link, SHRM’s chief human resources officer. “Because those have cost savings or cost avoidance components.”
Polling company Gallup says the cost of replacing an employee can range from one-half to two times their annual salary. It comprises recruitment and training expenses as well as costs relating to a position being vacant.
But not all measures to address burnout require financial investments. Citi introduced “Zoom-free Fridays” in March 2021 to ease the stress that frequent video calls place on employees.
Another powerful retention tool is simply recognising a job well done or performed in tough circumstances. “Recognition is hugely important,” says Joanna Daly, IBM’s vice-president of HR. The company’s initiatives to foster this include a programme that allows employees to give points to each other, which can be exchanged for rewards and gift cards.
Most important for employers, says Baumgartner, is something relatively basic: encouraging managers and colleagues to look out for each other’s mental wellbeing.
At IBM, a “mental health ally” programme provides training to recognise signs of stress or trauma among colleagues, to approach them in the right way and with empathy, and to access support.
Research suggests that many other companies are not doing this. Workforce analytics company Visier found in a survey of 1,000 employees that more than a third felt uncomfortable talking to their supervisor about burnout.
Listening and paying attention to the answers is also important because what employees want can differ, whether that is a half-day on Fridays or a different form of professional development. “We have to ask — do not assume,” says Baumgartner.
Jen Fisher, Deloitte’s US chief wellbeing officer, agrees. “The best companies . . . are not following a formula for wellness and wellbeing,” she says. “They are listening, learning and customising.”
The act of listening itself can go a long way towards increasing employee engagement, says Baumgartner. “You don’t always have to have the solution,” she says. “But people need to feel heard.”
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