What Companies Can Do To Retain Through the Great Resignation

Though it began with the service industry in light of the pandemic with rising health and safety concerns, more workplaces across sectors have encountered retention issues over the past 18 months. Call it the Great Resignation or the Great Quit or the Great Reshuffling, but attrition rates at companies everywhere are linked to everything from financial concerns, to anxieties over psychological well-being and physical safety, to seeking better work conditions.

In fact, over the past several months this wave of Americans quitting their jobs has only grown, including a record 4.4 million Americans quitting their job in September 2021, according to a November 2021 report from the Bureau of Labor Statistics. Now, employees have more leverage to demand better benefits packages from their employers. And as a result, companies have learned they have to do more to attract talent, and they need to do everything they can to retain and support their current rosters of employees.

To understand what financial concerns are driving employees today, a new Betterment study found that many workers are looking for better financial stability, support and benefits from their employers. “Our research shows that rising healthcare costs, towering student debt and uncertainty around retirement are motivating employees to re-evaluate their workplace benefits,” the report said.

Factors leading to employee resignations

Here are the high-level takeaways from the report:

• 54% of employees are more stressed now about their finances than they were before the pandemic.
• 68% of employees would prioritize financial wellness benefits over having an extra week of vacation.
• 74% of employees would leave their job for a company that offered better financial benefits—and this number climbs to 85% for employees who are student loan borrowers.

It’s no surprise that many employees are still financially impacted by the effects of the pandemic. Many — 43% — have had to dig deep into their emergency funds and savings since early 2020, according to the Betterment report. And though many employees have left their jobs voluntarily in pursuit of more stability or money elsewhere, those who haven’t want more support from their companies to avoid having to look for new jobs elsewhere.

More than a quarter (28%) of the survey’s respondents are currently looking for a new job, including 25% of Gen Z, 33% of Millennials, 36% of Gen X, and 13% of Boomers. Gen Z both voluntarily quit (18%), and considered quitting (36%) at the highest rates compared to Millennials, Gen X and Boomers, according to the survey.

What employers can do to retain talent

One of the most important things employers can do to retain their talent, based on the results of this study, is offer better benefits. Betterment found that 74% of the employees they surveyed would be likely to leave their job for an employer that offered better financial benefits. This is especially true among younger generations — jumping to 79% for Millennials and 84% for Gen Z. Employees indicated that the top three most enticing benefits are a high-quality 401(k), a 401(k) matching program and a flexible spending account or health savings account.

“Financial benefits are now their top priority above in-office perks and even vacation time, and employees are looking for particular help with retirement planning and student loan debt,” the report said.