Mid-Sized Companies See Higher Potential for Resignations Tied to Shortcomings in Flexibility and Hybrid Work Models
Wednesday, September 1st, 2021
Today, HR technology disruptor Hibobreleases the findings of a new study uncovering reasoning behind a rise in resignations, and how mid-sized companies are more likely to see employees quit compared to large and small companies. Hibob's survey explores the perspectives of employees at mid-sized companies, which make up a significant portion of the workforce. The results give valuable insight into what they want now, shedding light on how HR and leaders can create positive employee experiences to retain and grow their teams amidst the Great Resignation.
"As resignation rates remain high, recruiters, company leaders, and HR decision-makers must re-evaluate and understand what employees are really looking for today," says Ronni Zehavi, CEO of Hibob. When looking at mid-sized companies, almost half of surveyees said flexibility options are most important while job hunting, and that flexible work is the new 'deciding factor' in accepting a new role. Without flexibility, companies will risk losing their people and won't be able to attract great talent - something they cannot afford."
Mid-Sized Companies Are More Likely to Face Employee Resignations
Turnover in the U.S. has never been higher, with the Bureau of Labor Statistics recording four million quits in April. Hibob's data shows that the risk is highest for mid-sized companies, as those employees are significantly more likely to think about quitting than those at larger corporations or smaller firms. Specific findings include:
44% percent left their jobs over the last 12 months (quit or were laid off).
65% percent have thought about leaving their current role this past year, compared to 59% of those at smaller companies.
56% said they were "very likely or likely" to quit their job over the next year, whereas only 40%-36% of those at larger and smaller companies answered they were likely to quit in the coming year; the likelihood of quitting is almost double for mid-sized companies.
Employees at mid-sized companies highlighted a search for a better work/life balance (55%) and better benefits (45%) as reasons for leaving. Conversely, 54% of employees at large companies said their main reason to leave would be higher pay.
Mid-Sized Companies Need to Offer Flexible, Hybrid Work Models
As companies re-evaluate return to work plans, many employees are seeing continued flexible working options as the most important benefit of staying at their job. More than half (53%) of respondents at mid-sized companies view flexibility as "most important" to them, compared to 38% at other companies. Employees at mid-sized companies also noted the following:
56% would quit if their employer didn't offer flexible hours and location options.
Employees report that they are "most productive" when working from home, higher than those at small or large organizations.
66% felt as though going back to the office five days a week would impact their success, compared to only 44% of surveyees at small companies and 48% at large companies.
While employees have been productive working remotely, 71% of respondents at mid-sized companies said their HR teams have backpedaled on policies related to flexibility, whereas only 60% of larger companies and only 52% of smaller companies have done so. One-third of mid-sized organization employees believe taking advantage of flexible work policies can hinder their career growth, but only 14% and 16% of workers at large and small companies, respectively, feel this way.
"The fear of taking advantage of flexible work raises red flags surrounding equitable hybrid work modules. We have seen many benefits of flexible models, and leaders/HR strategists must aim to not alienate those working from home against those choosing to work in the physical office," says Ronni Zehavi. "Leveraging culture-enhancing technology, such as the bob platform, to create a connected company feeling can be a major boon to mid-sized firms striking a balance between the two work setups."
Mid-Sized Company Employees Are Seeking Alternate Income Opportunities
People working for mid-sized companies are more likely to pick up extra work. Seventy-one percent shared they are more open to the idea of freelancing than they were before the pandemic - and 28% have taken a second job, showing they are disappointed in salaries and the lack of flexibility. Conversely, only 16% of workers at small companies and 11% at large companies have picked up another role, indicating those at mid-sized companies are less satisfied with their current jobs.
The national survey was conducted online by Pollfish on behalf of Hibob on August 2, 2021. It includes responses from 1,000 full-time employees ages 25 and up who have been working remotely in the United States since the beginning of the pandemic. Hibob benchmarked small companies at 1-50 employees, medium-sized companies at 50-1,000 employees, and large companies as those with over 1,000 in staff.
For more information, please visit http://www.hibob.com/blog/great-resign-mid-size-companies