Did you know that there is an ongoing economic trend currently known as the Big Quit (Rosenberg, 2022), where there has been an increasing trend of employees quitting their jobs en masse?
This trend comes as a surprise to many, given the general stereotypical perception that workers are concerned about job security and stability, especially during the pandemic. Let’s find out more on the very idea of leaving a job.
Why Do People Leave Their Jobs?
There are many factors that explain why an individual would want to leave their jobs. Some people attribute it to:
(a) better career progression opportunities,
(b) monetary benefits and incentives,
(c) misalignment of company culture, or even
(d) retirement.
However, in the current trend of the Big Quit, the large attrition is generally attributed to the mismatch of employers’ demands and employees’ expectations. For example, in the local healthcare industry, more healthcare workers have thrown the towel as COVID-19 drags on (Tan, 2021)!
What Is Considered A High Attrition Rate?
An attrition rate can be said to be “high” when it is 10% or higher. However, this value will vary from the type and size of the industry and company (InsightGlobal, 2021).
What Are Some Exit Processes In Companies?
An employee exit process comprises of the policies and procedures carried out when the company is off-boarding an employee. The process can be categorised into 2 main stages, the first being a series of clearance formalities, and the second being the exit interview (Reyes, 2018). The exit formalities can be organised into a checklist and includes some examples of the following:
Employee to do a formal handover to someone within the business or document their duties.
Process any pending payroll and compensation matters.
Inform other employees about the resignation.
Collect any company property from the employee such as any electronic devices or other business properties.
Secondly, the exit interview serves as an avenue for companies to learn from employees why they leave and how the company needs to change. This is a crucial step in obtaining feedback as skilled employees are the crux of organisational success and employee retention is necessary. Exit interviews can be conducted face-to-face, through a survey or questionnaire, or a combination of these means. They enable employees’ views to be heard by the leaders and highlight issues and opportunities that are not always obvious. This facilitates employee engagement and can strengthen retention by signalling to employees that their views matter (Spain and Groysberg, 2016).
Case Analysis: High Attrition rates In The Public Sector In 2021
The general secretary of Amalgamated Union of Public Employees (AUPE) suggested that high attrition rate in the public sector could have been attributed by several factors ranging from change of interests to career stagnation and competitive remuneration. With Covid-19, the increased challenges and expectations might also have contributed to the high attrition rates as workers’ emotional and mental well-being were affected. Not only do they have to deal with the increased demand from the public, but remote working arrangement have also blurred the line between work and life, affecting their work life balance (Mohan, 2022) . It is hence recommended that employers “reach out” to understand employees’ needs before making necessary adjustments to remuneration packages (Chew & Ang, 2022).
To find out more about the high attrition rate in the public sector, click here!
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QN: What else do you think a company can do, beyond monetary benefits, to retain its workers?
References
InsightGlobal (2021). Employee Attrition Rate: How to calculate and improve. Retrieved from https://insightglobal.com/blog/employee-attrition-rate-how-to-calculate-improve/
Reyes, R. (2018). The ultimate guide to employee offboarding: Exit checklist, interview questions and timeline. Retrieved from https://snacknation.com/blog/employee-exit-checklist/
Rosenberg (2022). Workers Got Fed Up. Bosses Got Scared. This Is How the Big Quit Happened. Mother Jones. Retrieved from https://www.motherjones.com/politics/2022/01/record-quits-great-resignation-labor-workers-pandemic/
Spain, E. & Groysberg, B. (2016). Managing exit interview count. Retrieved from https://hbr.org/2016/04/making-exit-interviews-count
Tan (2021). More healthcare workers in S'pore quit amid growing fatigue as Covid-19 drags on. The Straits Times. Retrieved from: https://www.straitstimes.com/singapore/politics/more-healthcare-workers-in-spore-resigning-amid-growing-fatigue-as-covid-19-drags
Mohan. (2022). More public service employees leaving their jobs; attrition ‘picked up’ in last 6 months: Chan Chun Sing. CNA. Retrieved from: More public service employees leaving their jobs; attrition ‘picked up’ in last 6 months: Chan Chun Sing (channelnewsasia.com)
Chew. & Ang. (2022). Public sector union ‘in communication’ with PSD on reviewing remuneration amid increased attrition rates. CNA. Retrieved from: https://www.channelnewsasia.com/singapore/public-sector-union-communication-psd-reviewing-remuneration-amid-increased-attrition-rates-2503716
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