WORKFORCE | MANAGEMENT | HUMAN RESOURCES | STAFFING & HIRING
Brace yourself for massive employee turnover in the next 12 months
Somewhere between 25% and almost 60% currently employed workers plan to quit their job within the next 12 months. So say several international surveys.
For context, the total US quit rate or voluntary turnover rate was just under 3% across all industries in April 2021.
Levels of employee dissatisfaction vary by country, but they’re consistently high around the world.
Dissatisfied workers cite four main reasons:
- Blocked opportunities for personal or income growth
- Irritation with the way their employer has handled Covid-19
- Desire to develop new skills
- Desire to change their line of work
- Desire for more job flexibility
It’s already hard to find good candidates for many highly skilled jobs in SaaS.
If this massive turnover occurs, it offers big challenges—and opportunities—for B2B SaaS companies.
Why it matters now
If companies lose so many current employees, expect a host of knock-on effects. Here are a few:
- Disruption of your business if you lose employees
- Longer searches for qualified job candidates—possibly with higher fees paid to recruiters, richer comp plans for employees, more demands for workplace flexibility, more onboarding expense and effort, and long ramp times
- Disruption of your prospects’ buying processes and possible delays of your revenue
- More management time and attention invested in staffing, hiring, and other human resource topics
- Risk of compromised customer service, with subsequent risk of reduced customer satisfaction and higher churn
- The need to document business processes for new employees
Ideas to consider
- Fix morale problems now. Keep your finger on the pulse of your workforce. If you have problems with employee morale, take them seriously. Fix the problems before you lose people you value.
- Opportunity to sell HR Software. Do your company sells Human Resources (HR) software for job recruiting and workforce management? If so, a surge in employee turnover presents an opportunity to emphasize your capabilities for attracting and onboarding new employees.
- Deals at risk? Regardless of the kind of software you sell, check the big deals you hope to land in the second half of the year. Make sure you’re well connected through several key decision influencers. Don’t jeopardize your deal because you’re “single-threaded” through a small number of key people who may leave suddenly.
- Mind the payroll tax and reporting laws for new hires. If you hire employees in states where you’ve never had any, consider the implications for payroll taxes and administration. For some states and local authorities, payroll tax regulations are much more complex than for others. To avoid penalties and tax surprises, be sure your payroll services provider is familiar with tax requirements in all the states where you hire new people.
For a mind map with links to detailed research and its implications, go here. The map contains links to more than 8 related resources.
The detailed version of this map will disappear behind a pay wall after 2 weeks.
After that, you’ll be able to copy, download, share, edit, and collaborate on future versions for a fee. You’ll also have access to ongoing updates.
Date of first publication: 2021-07-04
Date of most recent revision: 2021-07-07
Driven issue number: 66