A Solution to Curb Talent Attrition and Quiet Quitting

Though performance management systems offer many functional advantages, we may often overlook the bigger picture impact that technology provides: a solution to curb talent attrition and quiet quitting.

Whether you’ve utilized a performance management system (PMS) or perhaps just read about or seen a demonstration, you’re probably aware of the advantages from a record-keeping and time-saving standpoint. It’s a one-stop-shop for setting goals, managing performance evaluations and tracking the progress of your workforce. But there’s a more significant impact.

A PMS is an effective tool to combat the biggest workforce trends that have developed in the last few years. First, it was the “Great Resignation,” which is still ongoing. The latest buzz phrase is “quiet quitting.”

So how does a PMS help combat these two trends?
 

Talent Attrition

The Great Resignation – sometimes referred to as the Big Quit, or perhaps the more apropos Great Reshuffle – remains an ongoing challenge for businesses. A recent survey states two out of every five workers in the U.S. are still considering leaving their job in the near future.

The impact cost of replacing an employee can be up to double their annual salary, which suggests that aside from the overall inconvenience that departures create, it is much more cost-effective to train and retain talent than replace it.

A PMS aids in retention by creating a forum for employee engagement through:

• Training and career development opportunities
• Coaching and two-way feedback
• Setting goals and managing evaluations for bonus opportunities

Quiet Quitting

While definitions of quiet quitting vary, the consensus seems to be that of employees just meeting their job description and not going above and beyond at work. The pandemic, remote work, a general increase in achieving work-life balance, generational differences, and – in some instances – outright rebuke of the “hustle culture” are all contributing factors.

Work-life balance is something many companies and industries have touted for several years now. And while it’s hard to argue with the merits of that movement, few envisioned the extreme interpretation of “doing the bare minimum to keep your job.” Like with talent retention, engaging your employees is a critical tactic to prevent quiet quitting.

In addition to the features mentioned above, a PMS also offers these advantages:

• Tracking individual and company goals
• Defining job descriptions and responsibilities
• Facilitating reviews and appraisals

Performance management and its relationship to employee engagement is especially critical for small and medium-sized businesses (SMBs). Not only are they less able to absorb the impact costs of talent loss and quiet quitting, but they’ve historically fought the battle of being a steppingstone for ambitious workers on their way up the ladder. A PMS can be a great equalizer for SMBs in the fight to attract and retain talent.

According to PrismHR, businesses that do not use a PMS spend 54 percent of their HR efforts on performance management, but just seven percent on engagement and development. A PMS drastically reduces the overall time investment and provides an opportunity to flip-flop those numbers in favor of employee engagement.

We are proud to offer LandrumHR Perform, an easy-to-use PMS, for those looking to increase efficiency and combat the current workforce challenges. 

Current LandrumHR PEO clients may reach out to their HR Business Partner to find out how to start utilizing LandrumHR Perform. Prospective clients can contact us to learn more about LandrumHR Perform and our other services that can help you attract and retain top talent.