Are improved workplaces linked to a lower employee turnover rate?

What we’ve learnt from the pandemic is that the way we were utilising offices wasn’t efficient, or what people truly wanted. The average employee turnover rate pre-pandemic was at an all-time high. What role does an inefficient and outdated office have on this?  We explore it in this article.

The future office will undergo drastic changes to suit the new ways of working that Covid has accelerated to provide a more productive, efficient and satisfying workplace environment. Can these changes impact the employee turnover rate?

Pre-Covid, the average employee typically stayed with a company for 4.5 years, and less than half that for millennials. Nearly half of millennials surveyed in 2018 by Deloitte said that they planned to leave their current company within two years. What are the drivers for such a high and rapidly increasing employee turnover? The plethora of opportunities and the opportunity for further growth outside of the company? Perhaps. But perhaps it also has something to do with clearly outdated workplace and office traditions that drives disengaged and unmotivated employees the desire for change so frequently. 

A report by EduMe discovered that in 2020 16% of Gen Z and millennial employees quit a job because they felt the technology provided was inadequate. They also discovered that highly engaged businesses experience 59% less turnover. A report by Linkedin stated that employees would stay with a company longer if they simply invested in their learning. These stats highlight the importance of having a workplace that is fit for purpose and is highly engaging.

Interestingly, Deloitte’s report on millennials in 2020 discovered that more millennials planned to stay with their company for at least five years than leave within two years, which is a huge uptick from the earlier report. This shows that job loyalty is rising, with companies offering more flexibility, a better work/life balance and are tapping into the needs of their employees. As companies plan their back-to-work strategies, we anticipate that continued improvements to the workplace will only continue to increase employee loyalty and reduce the employee turnover rate.

 

District Technologies is a workplace experience platform that allows communities to navigate the workplace and stay connected from anywhere. Workplace communities can use the platform to simplify their on-site activities from checking into the building, booking a desk or ordering lunch. The app is also a workplace social network which keeps your community connected wherever they’re based with news, resources, events and communications.

District Technologies is the go-to workplace experience platform that delivers to landlords and companies. A snapshot of some of our clients include; WPP, Investec, CEG, Elmpark Green, Cushman & Wakefield.If you would like to find out more about District Technologies, simply book a demo or get in touch.

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