Legal Ease


A Committed Workplace By Richard D. Alaniz, Alaniz Law & Associates


has been the inability to find and hire employees.


A


mong the most challenging realities for many employers in this post-pandemic world


As businesses across the


country began to resume or ramp up operations after weathering the storm of pandemic-related closures, the scramble to hire needed staff became a fact of daily life for many employers.


“Help


wanted” signs became ubiquitous. This lack of sufficient applicants was exacerbated by widespread job-hopping by current employees.


Both of those


problems continue to some degree to this day in numerous industries. The unemployment rate of 3.6%, its lowest point in many years, adds to the hiring difficulties. For the first time in many years,


employees assumed control of their employment options with an abundance of open jobs to choose from in about every industry. Since employers, desperate


to attract applicants, raised


starting pay, sometimes dramatically, changing jobs frequently netted the job-hopping employees a 10% or more increase in compensation. The cost of hiring and keeping employees came into sharp focus like never before for most employers. Estimates of the true cost of replacing an employee vary widely. They can range from about 33% of their annual pay to as much as twice their yearly salary. When you factor in turnover rates that in some industries can routinely exceed 25%, it can pose a serious financial


32 ❘ May 2024 ®


challenge for many employers. In some industries, meat packing and processing, and the hospitality industry for example, the turnover rate sometimes approaches 100%.


While attracting and retaining


employees is a fundamental business necessity, all employees want something more than just a warm body to fill a job vacancy.


Employers want workers


that are engaged and committed to their jobs. Unfortunately, that is often not the case. Studies, including some conducted by Gallup, have confirmed that on average, only 34% of employees are engaged with their work. These studies also found that 53%


of employees are not engaged, and 13% are actively disengaged. This latter group would rather be anyplace else than in the workplace. This is far from the committed workforces that all employers desire. Moreover, disengaged employees are clearly much more likely to be enticed away by another job opportunity should one arise. There is one other aspect of today’s workers that could impact this engagement issue. Millennials and Gen Zer’s, who comprise the majority of the U.S. workforce, view work differently than prior generations. Unlike Baby Boomers, they work to live, not the reverse. Work/life balance is a priority to younger workers. It could make commitment to their jobs more of a challenge. Given the realities about many today, what


workforces should an


employer do to develop the commitment and engagement that helps ensure a productive and stable workforce? In the difficult and inflationary economy that currently prevails, the competitive pay and benefits mentioned previously assume an even greater importance. The substantial pay increases that many employers have made to attract workers make competitive pay more of a challenge, but it cannot be avoided. It has become an imperative.


However,


while good pay and benefits are important, the primary motivation for employee job satisfaction and loyalty is how they are treated and perceived by management. It is an old truism, but nonetheless accurate, that employees quit bosses not companies.


A recent


employee survey found that almost one- half of those interviewed responded that they had quit a job because of poor treatment by a manager or supervisor. In one Hays study involving almost 2,000 employees, 43% said that the corporate culture was the primary reason for their dissatisfaction with their job and ultimate departure. They specifically pointed to a lack of open communication and the inability to provide feedback on issues of concern to them. They cited “open door” policies that more often resulted in repercussions rather than resolution of the problem they aired. All of this supported their conclusion that management simply didn’t care about what they had to say. A perception by employees of a


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