Why Are People Looking for Green Pastures?

 

      

People work for money but go the extra mile for recognition, praise and rewards."

Introduction:

In 2021, as some of the uncertainty abated a record number of workers started quitting their jobs creating the so-called Great Resignation. The “Great Resignation”, coined & predicted by Psychologist Anthony Klotz, is the tipping point of a nearly decade-long trend of employment dissatisfaction. And these people have left their jobs in search of more fulfilling roles with greater flexibility – it's been called the Great Reshuffle.

What’s the Issue?

India’s second-largest IT services company Infosys announced its fourth-quarter results ending on March 31, for the financial year 2022. And it shows over 80,000 employees have resigned from the company between Jan-March 2022. Infosys is reportedly invoking the non-compete clause in the employment agreements to curb attrition. The non-compete clause bans its employees from joining a few companies & to work for the same customers with whom they had worked at the company for the last 12 months. However, on-compete clauses are not valid in India as per Sec 27 of the Indian Contract Act, which states that any agreement that restrains anyone from practicing a lawful profession, trade or business is to that extent void. In an era where organizations like Meesho and Zerodha are going fully remote, and many others are spending more time, value, and effort on employee benefit programs, a move like this will only contribute to more attrition.

Today, employees are burned out, unengaged, and eager to explore new opportunities. And to retain staff amid this mass turnover, companies are offering significant salary hikes, generous vacation time & unique benefits. While these perks might have worked earlier, they are not enough anymore. So, what needs to be done to engage & retain the workforce?

Employee Recognition

To answer this increasingly Googled question, Achievers Workforce Institute surveyed more than 4,200 employees and 1,600 HR leaders across the globe in February. After digging through the diversified data set, AWI's team of behavioural research scientists found the key in just two words: employee recognition. According to the survey results published in Achievers' 2022 State of Recognition Report:

1. Thank You no enough:

Employee Recognition leads to better engagement, higher retention, & increased productivity.65% of the respondents admitted that feeling recognized would reduce their desire to job hunt. A mere thank you may not be enough. Employees want to know whether they could make a difference.

2. It's about camaraderie, not compensation

The data highlights that recognition actually outweighs the perception of a fair salary as a driver of employee advocacy, job commitment, and productivity. 

3. Most managers aren't trained to recognize top talent

Research by Harvard, MIT, and other schools discovered that soft skills training in topics such as problem-solving and communication improved productivity and retention by 12 %, with a 250 % ROI in under a year. Most managers don’t know how to make frequent conversations meaningful. As managers are leading teams from the front, it's vital they acquire the soft skills to properly recognize employees in the remote era. While 90%t of HR leaders say they offer recognition training, only 41 % of employees say they've received it & only one-third of those trained were instructed on how to send a meaningful recognition. This shows the disconnect & calls for regular training on recognition best practices.

Conclusion

Recognition helps employees see that their company values them and their contributions to the success of their team and the company overall. Most importantly, frequency and timing of recognition along with ensuring it is value-based and specific. This is particularly key when organizations grow or change. It helps employees build a sense of security in their value to the company, motivating them to continue great work. No matter the route taken, ensuring employee recognition should be the core part of a company’s DNA that will improve retention.