Huge spike in resignations expected over next year

Over the course of the pandemic several studies have predicted that staff turnover will spike as employees seek new career opportunities as the crisis begins to ease.

With remote work opening up more job prospects, and employees looking to move on due to the way in which their employer handled the last 18 months, it may come as no surprise that almost three in five (58%) employers expect to see an increase in resignations over the next 12 months.

Dubbed the ‘Great Resignation’ in a recent whitepaper shared by Cendex, the research discovered that nearly half of employers review their pay and benefits packages once a year, which could contribute to the high turnover.

For 54% of HR professionals, salary is the most important factor for new candidates, which means that considering employees’ pay could go a long way in retaining them.

Despite these figures, 32% of HR professionals stated that we will see an increase in resignations in the next six months, highlighting that an annual review will not suffice.

Therefore, employers should consider reviewing their pay and benefits package more regularly, and the whitepaper revealed that some organisations are starting to implement this. In fact, 19% of employers report making reward revisions once a quarter, while 12% do it weekly, and six percent do so on a weekly basis.

Scott Walker, managing director (MD) at Cendex, noted that due to remote working employees have been able to reflect on what is important to them.

He said: “As a result, one of the biggest challenges for employers in the coming year will be employee retention, yet despite this threat to turnover rates employers still only review pay and benefits once a year.”

The study also found that one in 10 HR leaders cited that keeping up with salary expectations was a challenge, however Walker pointed out that to do this would ensure a business remained competitive when it comes to retaining and attracting new talent.

“Regularly reviewing pay and reward will put employers in the best position for retaining and attracting new talent so it’s essential that organisations are able to confidently benchmark their offering and remain competitive in the market,” he explained.