According to the US Bureau of Labor Statistics, people quit their jobs in unprecedented numbers in 2021, with each month between April and September breaking the record of the month prior. 4.4 million people quit their job in September alone—30% more than February 2020. This multi-month event has become known as The Great Resignation. 
The Great Resignation predominantly featured employees between the ages of 25-40 who had been at their jobs for several years and left their current positions in search of more competitive pay and improved benefits. This created a large amount of churn as people who had been underemployed waited for the best possible offer before joining the workforce again. 

Some industries saw a greater quit rate than others. For example, given the intensive mental strain of working in hospitality, food, and healthcare during a global pandemic, it’s no surprise these industries saw the highest rates of resignation when compared to other sectors. Tech, however, remained relatively stable with minimal levels of turnover. 

Even if the quit rates slow in 2022, natural turnover will continue—including voluntary and involuntary separations. The need to attract and keep top talent will remain a fact of business life, one which employers should invest in via improved mental well-being benefits and creating employee resilience strategies. 

Employee resilience strategies help create long-term stability

Resilience is all about bouncing back from stress, tying it directly to an employee’s mental well-being. Someone with strong resilience will be able to handle a stressful incident well and then return to work the next day ready, willing, and able to do it all over again. They’re less likely to feel fatigued quickly or experience professional burnout because they have healthy coping strategies that reinforce their resilience. 

As is the case with many mental health and wellbeing issues in American workplaces, however, resilience doesn’t stratify across the office equally. Employees of color have to cultivate a much stronger resilience than their white counterparts. Some daily stressors unique to employees of color include dealing with microaggressions, unsupportive coworkers, and being passed over for opportunities they are qualified for—which is by no means the exhaustive list. A recent McKinsey report found that the COVID-19 pandemic intensified these inequalities, putting further strain on the stressors businesses ask of their employees of color. 

Exhausting employee resiliency leads to professional burnout, contributing to higher turnover rates and lessened productivity. Thus it is imperative that organizations remove the structural barriers and workplace inequities that negatively impact employees while also ensuring they are supporting their mental wellbeing. Investing in strategies that build a stronger, more equitable workplace and improve employee resilience means improved engagement and increased productivity in daily operations. When your team feels equipped to handle work-related adversities, they’re more likely to stay committed to their workplace, coming back each day to their goals with focus and efficiency. 

A 2021 study conducted by Forrester Consulting on behalf of Modern Health, for example, found that approximately 80% of 1,215 surveyed employees were more likely to stay at a company that provides high-quality resources to care for their mental health. 

Helping your workforce build resilience reduces the direct and indirect costs of turnover

By investing in employee resilience and retention, your organization can work to reduce the direct and indirect costs that drag down company performance. For example, simply filling a position that has recently been vacated due to a resignation has a long list of costs associated with it, including finding, hiring, and training the new employee. Most recruitment firms charge at least 20% of the new employee’s base salary and the time needed to get them up to speed can cost up to 75% of their salary in lost productivity. This is without considering the cost associated with the new employee requiring current employees to help or answer questions, pulling them from their daily goals.  

You won’t have to spend as much time and money recruiting replacements for resignations if you have fewer employees to replace. With less time directed to new employees, teams can focus on reaching their goals and managing daily operations, increasing productivity. 

Other Turnover Costs Include: 

• Administrative costs of hiring a new employee
• Costs associated with the employee’s lack of motivation prior to leaving
• Costs of trade secrets and proprietary information shared by the employee who leaves
• Public relations costs

Offering Modern Health solidifies the organizational strategies that are essential to strengthening your workforce

In a recent survey conducted by Forrester and Modern Health, 73% of employees and 81% of managers indicated they would be more likely to stay at a company that offered high-quality resources to care for their mental health. This is where we can help.
Modern Health is a cost-effective employee benefit that encompasses the key elements of support for employee resilience. It delivers quality, culturally-centered care—for employees and their eligible dependents facing a full spectrum of needs—across the globe, with providers in more than 55 countries speaking 50+ languages.If you’d like to learn how you can support workforce wellbeing in your organization, you can find resources here or schedule a demo today.