Analysis
By s1jobs
To say that the current labour market is “choppy” is akin to talk of “fresh breezes” in the middle of a hurricane.
Latest figures put the tally of unfilled vacancies across the UK at approximately 1.25 million, a number that has continued to climb since surpassing one million for the first time ever back in August. Meanwhile, the UK Labour Force Survey (LFS) has revealed that 1.02 million people moved to a job from another between July and September of last year, and 391,000 of those were resignations – the highest spike of both in LFS records.
Staff turnover rates are traditionally highest among younger employees, but this has not been the case during the pandemic. The so-called “Great Resignation” is instead being driven by mid-career employees in the 30 to 45-year-old bracket, with the number of job leavers in this age range up by more than 20 per cent year-on-year.
The narrative of “the pandemic has made us rethink our lives” has arguably been overplayed, but there seems little doubt that some are seriously reassessing their objectives and priorities. Victoria Short, chief executive of the UK arm of global recruitment group Randstad, notes that some teams have been running “too hot for too long”.
“The pandemic has changed how some people think about life, work, and what they want of both,” she said. “Covid has reminded them that life is too short.”
Some businesses have sought to make performance management – identifying and suitably rewarding their most valuable staff – part of their approach to retention. This technique is subjective, however, and many can fall through the net.
Organisations that are overly reliant on a small number of people are at risk as the loss of a key team or staff member would seriously impair operations. So while retention is important, so too is a steady flow of fresh blood needed to build long-term resilience.
READ MORE: Pay data needs to see the light of day
Certain businesses such as those in the hospitality sector are accustomed to high turnover, but most organisations aim for a churn rate of between 8% and 12% per year. Anything below that risks stagnation, while anything too much above jeopardises stability, efficiency and customer service.
One potential benefit of the Great Resignation is that it is forcing organisations to address equality and diversity issues in their quest for talent. Avoiding complacency while maintaining company culture is a delicate balancing act, but the focus for 2022 should be on developing strategies that give all staff – old and new, of every rank and background – an incentive to be there.
Search the latest jobs in Scotland at s1jobs.
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