The pandemic disrupted employee turnover patterns, with turnover dropping initially but then expected to surge throughout 2021 as more employees seek new jobs or quit without backup plans. This surge could triple the monthly number of resignations and significantly increase costs for companies from replacing staff. Surveys found the top reasons for expected increased churn are desires for better compensation, work-life balance, and feeling disconnected from company culture due to remote work pressures. Employers can address churn by focusing on engaging top talent, providing recognition, listening to employee feedback, and supporting career development and mentoring to bolster engagement and retention.

1. The Season of Churn:
Pandemic-Influenced Employee Turnover

2. • When the pandemic hit, offices emptied
and businesses faced turmoil.
• Employee turnover was a problem before
March 2020, but it dropped to a nine-
year low between then and the point at
which vaccinations began to pick up.
• The COVID-19 disruption was “the quiet
before the storm," and experts predict a
subsequent tidal wave of turnover.
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3. • This can have real implications for your
business: Failure to hold on to your
talent can trigger a devastating trend
called employee churn (the opposite
of employee retention).
• Indeed, the cost of replacing staff,
conservatively speaking, is at least 150
percent of their annual salary, and
probably more than double.
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4. Tracking EX Through The Pandemic
And Beyond

5. • According to a reliable survey, the
U.S. is facing a flood of employee
resignations throughout 2021.
Consider this:
• More than 50 percent of the respondents
said they were on the hunt for a new job.
• In a separate study, 25 percent indicated
they would outright quit without a
fallback as soon as COVID-19 fades from
the scene.
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6. • Danny Nelms, president of The Work
Institute, a research and consulting
firm, believes there’s pent-up
employee turnover ready to explode.
• He thinks it will take the monthly
number of employees resigning their
jobs from 1.9 million (in April 2020) to
a monthly number above three million
throughout 2021.
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7. Reasons For Employee Churn In
Pandemic Times

8. • Traditional motivations like ambition
(i.e., rising in the professional
hierarchy) or looking for a raise are
the primary drivers.
• A study by the Achievers Workforce
Instituteconfirms that the single most
significant churn influence was a need
for better compensationand benefits
(35 percent).
• Improvement in work/lifebalance (25
percent) was a close second.
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9. • The study dug even deeper, exposing
some underlying discontent:
• Nearly half of the 2,000 respondents felt
disconnected from the company.
• Over 40 percent felt their employer’s
culture was slipping under pandemic
pressures.
• Only 21 percent had an affinity to their
company and a compulsion to stay
engaged.
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10. 10
• In November, DC-based Eagle Hill
Consulting ran a poll across 1,000
employees, with some
groundbreaking insights.
• The poll found that the trauma of
adjusting to COVID-19 and surviving
to fight another day has created a
significant loss of employee loyalty.

11. • At the root of it all? An inability to
show performance appreciation (i.e.,
recognition) and execute an effective
employee feedback program.
• Part of the challenge is how to make
people part of the corporate family
when the human-to-human touch
isn’t possible.
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• Engagement may also have suffered
because of remote work.
• While it leads to more flexibility, data
shows employees are working more
— starting earlier and finishing later —
to cover family responsibilities.
• Social restrictions and family stresses
blurred the lines between work-time
and family-time.

13. What Can Employers
Do About It?

14. Look ahead: define talent, skills, and
roles beyond COVID-19.
• With remote work in the mix, the
former rules go out the window.
• Upskilling, re-skilling, and filling in
the gaps with freelancers are
critical considerations that can make
all the difference.
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15. 15
• Rethink your path forward using the
following guidelines:
• Identify and focus particular attention on
your top-performing employees by going
the extra mile to engage them.
• These individuals are more likely to burn
out sooner, generally reflecting a higher
ambition.
• This involves developing a program of
well-thought-out training, with greater
transparency around career progression
and compensation.

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• Don’t miss a single chance to recognize your
employees: reward them in meaningful ways.
• Listening to employees has never been
more critical: Hear what they have to say on
everything that impacts their lifestyle and
remote work.
• In times of parabolic change, feedback is
an invaluable commodity, so EX surveys will
help illuminate employee thinking
and emotional well-being.

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• Frank focus discussions (remotely or in-
person), career counseling, and
mentoring can bolster employee support
and employee engagement.
• Interviews with employees who are
considering leaving — or have given
notice — may offer insights that lead
some departing employees to reconsider
and stay with your organization.

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