The economy is improving. Is your turnover stopping you from being a part of that growth?
As companies closed out the third quarter the Bureau of Economic Analysis reported that the US GDP had increased at an annual rate of 2.6%. This comes as good news after the decreasing 0.6% in the second quarter 2022.
According to the report the uptrend reflects a decrease in private inventory investment, an acceleration in nonresidential fixed investments and increased federal government spending, decreased consumer spending and fewer imports.
Fantastic, right?
For some yes, for others, maybe not so much?
Whether you believe the economy is or isn’t improving…turnover still decreases profits, retention still increases profits. Employee engagement is still driven by strong workplace cultures. How we do…what we do…when we work together.
More from the Bureau of Labor Report
Recently the Bureau of Labor Statistics released the information on job openings and turnover rates for the third quarter. This report shed light onto the age-old struggle of balancing turnover with production/profit.
With the economy growing and rebounding the past quarter, turnover is still very high in most industries, for some still increasing.
In August, we saw that the number of quits/separations was almost unchanged from last year’s report. However, it is not so said that it is all positive, not all industries have maintained their status quo.
The hospitality and food service industry suffered the most with 294,000 employees leaving in August.
What Impacts Employee Turnover Rates
Questions that must be asked and solved…
- Why should you care?
- In today’s information era, why do so many companies still struggle with turnover; losing millions of dollars in recruiting and training as a result?
- If a large food chain invested in employee engagement, retention, and promotion, would they be able to alleviate or stop that revolving door?
For many it comes down to company culture and sense of purpose and alignment (engagement) for their employees.
While we saw an increased turnover rate in the hospitality and food services, we saw the opposite in the professional and business service industries with 94,000 less resignations in August 2022 compared to the year prior.
- What has the business service industry done to inspire employees and attract talent to their sector that the food service industry hasn’t?
- Some things are obvious like pay and benefit differences but outside of that how are companies living the culture they preach?
Other than industry, geography has also played a role in employee turnover. In the months of July and August, southerners quit their jobs at a much higher rate than anyone else in the US.
- Has remote work helped aid this trend of workers leaving this region to find work elsewhere?
- As we saw in 2021 with workers leaving their jobs in record numbers to find better opportunity, pay, benefits and culture, could this be a holdover of this trend?
The companies with high turnover in the south like Norfolk Southern and Bank of America have invested millions in recruiting efforts to no avail and still struggle with employee retention. Both companies tried solving the issue last year by giving out large signing bonuses and benefits packages but still have high turnover.
- Have they missed the point?
- Did they do a root cause analyses before acting?
- Is it pay or deeper with the culture?
Analyze Your Company Culture Before Acting
Completing a culture inquiry – wide view of data and going on a listening tour at all levels of an organization is the best way understand the far-left, the middle, and the far-right perceptions and reality of a company’s culture. Then and only then will the leaders of a company know how to act – curate the culture desired, needed and live it daily.
Culture isn’t built in a day; it’s built daily.
Employees must feel seen, valued, and always heard to truly be engaged. That’s when problems get solved and innovation, stability, and growth happen.
For more information about workplace culture, analyzing it, curating it, creating it visit or contact https://premierrapport.com today.
