HR in 2022: The Major Problem Everyone's Dealing With

If you’re in HR, we know you’ve had a challenging 2021.

Amongst the challenges created by the pandemic for Canadian businesses, one particularly pressing issue is retention. During the uncertainty of 2020, many employees held off on making any sudden career changes in favour of stability and steady income. However, 2021 brought a degree of normalcy back to the workplace and gave those who were looking to make a change the opportunity to do so.

Beyond just regular market fluctuations, the pandemic also forced thousands of employees to change their perspective about their jobs. Poor working conditions, low pay, minimal benefits, and poor recognition of one’s value are all reasons why employees decided to pursue new professional opportunities this year. According to a 2021 survey by the Canadian Centre for the Purpose of the Corporation, it’s estimated that 42% of Canadian employees say they’re considering a career change in the next year.   

Another critical piece of the turnover puzzle is financial stress. Even if an employee has an otherwise “good job”, the effects of financial stress can quickly derail their employer’s efforts to keep them happy. When employees are stressed out about their financial situation, they’re less likely to be engaged at work, less likely to be productive and more likely to look for a new job opportunity in the immediate future. The problem? 48% of Canadians say they’ve lost sleep over their finances, and 1 in 3 employees admit to being distracted at work due to their financial situation. 

Overall, this shift presents a major problem for Canadian business owners: when employees start chasing new opportunities in droves, employers face an equal amount of pressure in their turnover rates. Turnover can be extremely expensive for a business in both its financial cost and the loss of productivity it creates. It’s been reported that hiring a new employee can cost up to 40% of the employee’s salary, and that training a new employee often takes 2-3 months, if not longer. Looking towards the new year, employers need to focus on retaining their key employees to stay competitive amongst a rapidly shifting labour market.

Knowing this, what steps can HR professionals take to hold on their star employees and reduce the amount of turnover their organization experiences in 2022?

Employees want to feel like their contributions have value and that their work is recognized by their employer. Work takes up the bulk of most people’s time, and many people don’t have multiple streams of income to rely on. As such, the degree of support you choose to offer your employees has a very real impact on both the way they perceive your company and their ability to enjoy their lives beyond their time at work each day.

With this in mind, the greatest way an employer can minimize their turnover rate is to offer their employees an increased level of financial support in the form of a benefits package. By offering your employees access to a financial wellness program, you’re showing them that you both value what they do and want to offer them a way to improve their financial health and reduce the stress they may be feeling. This not only gives them an incentive to stay with your company, but also provides them with the tools they need to make impactful changes to the way they manage their money.

There are a variety of components you can include in your program, including educational materials, access to a professional and programs that offset employees’ fixed costs. However, if you’re looking for an innovative financial wellness benefit that’ll help you stand out amongst your competitors, QUBER is your best bet! QUBER is a financial wellness benefit that encourages employees to grow their savings, seeing their contributions matched in part by their employer. The money that employees save is liquid cash, meaning they can use it towards something they really want or they can pull from it if an unexpected expense arises and avoid going into debt. Plus, saving with QUBER reinforces the habit of regular saving, helping to improve employees’ money management strategy over time. Employees with Levi’s in Canada have been using the program for over a year, and 87% said they wouldn’t have saved as much money without QUBER.

Overall, turnover is going to continue to be a major issue for HR departments well into 2022. Recognizing employees’ contributions to their business overall and reducing the effects of financial stress in the workplace are going to be key strategies for those looking to stay ahead of curve.

Interested in learning more about QUBER? Set up a free, 30 minute demo with our team to see the platform in action, what the program would look like for your employees  and learn more about how QUBER can boost your business’s engagement and retention rates in 2022.