The Impact of COVID on Employee Retention

Posted by Gary Purcell on Mar 8, 2021
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Each year, Allgo conducts an in-depth survey of HR Leaders and Senior HR Managers to get an insight into HR challenges, priorities and trends in the year ahead.

249 HR Professionals completed the survey this year, and with all the changes in the last 12 months, there were some interesting insights gained.

While Employee Retention is broadly excepted to be in line with previous years the factors affecting whether employees stay in a company are being impacted by the the changes brought on by the pandemic. The main finding is how Work/Life Balance has taken over from Career Progression as the top factor in employee retention.

Here below are the top factors that will affect Retention in 2021-

1. Work / Life Balance

For the first time, Work/Life Balance is the No. 1 factor affecting retention. With an increase in staff working from home it has never been more important to ensure staff are equally prioritizing the demands of their personal lives and professional lives. Achieving this balance is key to staff retention in 2021.

2. Leadership & Line Managers

According to our survey there will be a particular emphasis on Leadership in 2021. This factor has jumped from 7th position in 2020 to 2nd in 2021. The importance of  Line Managers in employee retention has also increased (from 8th to 4th place), so it is clear that the transition from the traditional working environment to a more online working environment, is putting people management much more under the spotlight as far as employees are concerned.

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3. Pay

Pay is falling in importance when it comes to staff retention. In 2019, Pay was the top retention factor, falling to second in 2020. This year, we see Pay drop significantly to being 8th in ranking. Career Progression has totally given way to Flexible Working when it comes to retaining staff in 2021.

4. Employee Recognition

Employee Recognition is also becoming a more important retention factor. Ranked at 6th most important in 2020, Employee Recognition was the 5th most important factor in 2021. The channeling of course is in providing Employee Recognition in a remote working environment, which may require a more formal and planned approach to the topic.

5. Homeworking / Work Environment

Not Surprisingly, the option to work from home is starting to be an essential factor in talent retention. Ranked as the second least important factor in 2019, the pandemic has undoubtedly brought about a whole new outlook when it comes to working from home.

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