In what has been called the great resignation, staff have been leaving their current jobs in record numbers in the US. This has also been the case across the UK and other European countries. Workers have been seeking new employers for a multitude of reasons. In 2021 alone, forty-seven million people left their jobs voluntarily in the US, according to the Bureau of Labor Statistics. The number has been rising year on year over the last ten years, with the only decline in the trend coming in 2020 as people held onto their jobs during the pandemic. However, since 2021 the rate of voluntary resignations has increased once more. You may ask, why are people leaving their jobs and seeking new opportunities? We look at the top five reasons research has given.
As we can see above, people have been moving jobs in the great resignation due to feeling disrespected at work. Meaning they feel they are not getting correct recognition for their efforts. Pay, as usual, is a common contributing factor, this can also be linked with recognition of their work, e.g., increased work/low pay. The next reason given was working too many hours. This could be due to tasks taking longer to complete, having to work extra hours to finish, and maybe not getting paid for it. Burnout is also a factor if this practice becomes a habit, and a poor work/life balance. No clear promotional opportunities are another key reason for people moving employers. Finally, carrying out repetitive and thankless tasks is another reason to look for more fulfilling work.
Staff retention is now a key priority for companies that are being affected by the great resignation. The cost of employee turnover can vary depending on the level of the role. For an entry-level position, it can cost between 30-50% of their annual salary to replace them. For a mid-level position, it can be 90-150% of the annual salary to fill that position. Another factor is the 6-9 months it will take to find a suitable candidate, onboarding and training them as required.
Businesses are looking for ways to solve the key issues of why people are leaving. Many companies offer bonuses, better pay packages, flexible hours, and training & development plans to keep existing staff and attract new hires. Another key aspect is investing more in the company’s technology to retain the best employees and attract new ones. This can be a win-win situation for the organization.
With all of the above counteractive solutions to the great resignation issue. One solution that can get overlooked is the investment in technology. This is especially true in the finance departments of B2B companies across the globe. What finance departments with little to no automation see are that staff can have a very poor work/life balance, they may not be enjoying the role as much as they could be. Staff is dealing with repetitive tasks that can be soul-destroying. They may also be using manual processes or using in-house solutions such as Excel, to complete key financial tasks. All of this leads to increased working hours to complete objectives every month. All key reasons, which we have seen above, that result in staff moving to other companies.
Organizations need to invest in technology for finance departments to digitize all paper-based records and use software to automate high-volume financial processes. This will lead to staff completing tasks faster, which means a better work/life balance and increased job satisfaction. It also means staff will be more likely to stay on with the company, as you’re giving them modern technology which removes the repetitive and mundane parts of their daily tasks. They won’t feel the need to find a company that embraces technology more than you. Investing in technology can be a great antidote to the great resignation for many B2B companies.
If you would like to discover how Cashbook can help digitize and automate your financial processes with our software solutions. You can contact our team now by calling +353 61 338 400 (International) or 630-352-2228 (North America). Otherwise, please email firstname.lastname@example.org. We look forward to helping your company realize the benefits of cash automation technology.