By now we’re sure you’ve heard of “The Great Resignation” happening globally, and it’s not just a hypothetical idea. In fact, according to a Microsoft survey of over 30,000 workers across 31 countries, 41% of workers across the globe are considering leaving their jobs.

What is the true cost of resignation? How does this affect your business and what can you do to mitigate the situation and prevent it from happening to you? With this article, we will help you turn the situation around and use The Great Resignation wave as an opportunity to retain and hire even more top talents and become an even more attractive company to work for in the process.

The Great Resignation

The great resignation worldwide was not surprising to happen amidst the pandemic. Companies are challenged by the economical decline due to lockdowns in most countries and in turn, has affected their retention programs for their employees.

the great resignation

Various telltales regarding the great resignation in other parts of the world are "Lockdown Generation" (June 2020), "Zooming Our Lives Away" (June 2021), and "13 Suggestions on Sanity" (June 2021). A common theme in all these is the lack of flexibility of companies to offer a safer, remote work setup for all.

Another study commissioned by Slack shows a steady increase in workers’ openness to new jobs every quarter since June–this covers employees from Australia, the United Kingdom, the United States, Germany, Japan, and France. "They're rethinking — not only in terms of things like compensation — but also, clearly, things like flexibility, purpose, balance," said Brian Elliott, a senior vice president at Slack.

According to Darwin Rivers, the founder of the Philippines HR Group, another reason that also contributed to the great resignation is the self-realization of people with what they want in life. Moreover, Gen Z adults and Millenials highly value their work-life balance, and now that they experienced the flexibility remote work offers, they are more than willing to quit their jobs when companies force them to work onsite.

The True Cost of Resignations

Resignation may be one of the costliest things to happen to companies. When people leave, companies experience a loss in talent, industry knowledge, and know-how, and a momentary shortage in manpower during transition periods. On top of this, every resignation incurs an additional cost to replace and hire a new employee. With costs also going way beyond financials, resignation requires additional time, effort, and a multitude of admin work. With all of these in mind, we get a clearer picture of the true cost of each employee’s resignation. 

The worst scenario is bleeding out top employees at the same time. This is why companies globally have become more and more willing to adjust and adapt to the changing landscape of work.

The state of the great resignation in the Philippines

The Philippines was not spared from this phenomenon. There was a 176% increase in voluntary resignation across all industries during the pandemic according to a recent study conducted by Sprout Solutions, a Filipino SaaS Company.

“The average voluntary attrition rate in 2020 was 1.31 percent. In 2021, it rose to 2.27 percent, a 73 percent increase in average voluntary attrition across different industries, that’s almost double,” said Kislay Chandra, Sprout Solutions’ Chief Product Officer. 

The catch? Most of them are looking for secure and stable remote work. Filipinos became more eager to find jobs and even recorded the lowest employment rate when the pandemic happened. This is mainly because people want to stay in their provinces or at home with their families. And because the country is one of the top outsourcing destinations worldwide, they can find a suitable job for their lifestyle easily.

Remote Work & Hybrid Solutions

What does this mean for you? It means that employees are resigning from their jobs and looking for 1 thing in common: Flexibility in working conditions. 

Considering shifting to a fully remote/ hybrid working setup can become a major advantage and game changer to your business even in these challenging times if you haven’t done so already. However, what would set you apart from all the businesses adapting to the changing times is offering secure working arrangements for your employees. This then becomes not only a matter of flexibility to attract employees but also a matter of keeping people for the long haul. 

How Can Remotify Help?

With the global labor market continuously evolving, businesses still struggle to enter foreign markets securely and legally to create a robust offshore workforce. Having an Employer of Record (EOR) removes the need to register as a business entity in the Philippines. 

This means when you Remotiy, you can ensure legal compliance for your new or existing team in the Philippines all in a matter of days. We minimize the legwork required from you and save you from all the administrative headaches you would have had to go through to begin to employ legally in the Philippines. We also help remove the risk and HR administrative headache of having to manage multiple individual contractors halfway across the globe.

remote work

With our EOR services, we support you with HR admin, payroll, legal compliance for your team, and more. We also provide end-to-end assistance in employment from helping you create job descriptions to see the employment process all the way through. Our service also includes an INSPIRE program that helps build a culture of remote team engagement and well-being.

If you can provide a secure remote working environment for your employees, and provide them the same benefits they have left their previous jobs for, you can ride the wave and shift the phenomenon to your advantage by retaining your current employees, becoming even more attractive to employees on the lookout for opportunities, filling up gaps in your team, and keeping them in the long run.

For more information about our services, you can check out our website or send us an email at hello@remotify.ph.

Consistency is really important no matter the size and stage of a business. One of the key areas companies must be consistent in is employee retention especially when they hire remote workers. Keeping great employees will not only improve your company performance overall, but it will also reflect outwardly on your brand. This also means spending less time and resources on new hires. However, the past decade has seen an alarming turnover rate all over the world.

According to a study by Work Institute, employers are paying more than $600 billion in turnover costs as more employees decide to leave their jobs for various reasons. It also lowers the knowledge base in a company and decreases performance and productivity, especially in a remote work environment.

But how do you work towards retaining your remote employees? In this blog, we list down the 5 best practices to ensure remote employee retention in your company.

1. Create a smart onboarding process for your remote employees.

With a great onboarding program, it is easier to create a bond between new hires and the company. A study from Glassdoor proves that companies with effective onboarding processes improve employee retention by 82%.

However, the biggest issues in onboarding processes arise right when the company gives unrealistic promises that they can’t keep to their employees. Some remote employers fail to identify the differences between traditional onboarding and remote employee onboarding which leads them to more turnovers. 

If you want to create a higher retention rate when you hire remote workers, it is important to prepare and educate them about what they can expect in the beginning stages of their employment. You should also instill the organization’s ideals and what you aim to achieve through their help.

This is why at Remotify, we put importance on onboarding processes and help employers build a better bond with their employees through our services that include an onboarding program for each employee hired through us.

2. Use the right technology for remote workers.

Choosing the right technology such as equipment and software is important when you hire remote workers. It can make employees’ jobs more convenient thus improving their overall productivity. They can be more efficient with the right tools, an up-to-date computer, and a frictionless project management system.

There are also remote companies that provide internet fee disbursement and laptop procurement for their employees. Aside from improving work productivity and quality, this improves employee satisfaction within the company.

3. Provide training that benefits their career progression.

One of the factors that make employees satisfied with a company is their career growth and progression. This means that if you want to retain your remote workers, you must be able to provide them with the opportunity to grow as a professional and be promoted to their desired positions.

To make this possible, having company training programs for employees where they can learn new skills and improve their career prospects is very important. This will not only benefit your employees but can also be a great investment for your company as you acquire highly skilled employees.

You can offer them online paid courses that they can take without disrupting their work schedule. Some companies offer tuition reimbursement for their employees’ graduate education. This is ideal for growing companies that are aiming to develop their existing executive teams.

4. Offer competitive wages and benefits when managing remote teams.

Remember that your people are the greatest investment that you can have for the success of your company so it is only fair to offer them a competitive wage. Before you decide on your salary and benefits, make sure to consider different factors, especially the amount that your rival businesses are willing to provide.

In this digital era, it is really easy to connect with other people in equivalent roles and know the salary range and other benefits that they get. If your employees realize that they are not paid within industry standards, it may push them to get on board with your competitors.

So, the best way to prevent this from happening is to offer them a salary within the average industry range or even higher. Offering a secure working contract and thinking of your employee’s benefits such as social contributions, healthcare insurance, laptop procurement, amongst other benefits will also help improve your business’ employee retention. 

If you are looking to hire remote workers in the Philippines, here is an article that will help you understand the standard rates for different roles of Filipino remote workers. To keep things simple and convenient for you, you can partner with an Employer of Record company that will handle the complexities of providing benefits and managing local payroll for your remote team.

5. Get feedback and take immediate action.

If you aim to be a people-first company, you must give importance to your employees’ voices by letting them submit regular feedback about your organization. There are a lot of positive outcomes that can be achieved by instilling this culture in your business. As it makes your remote workers feel more empowered and productive, it can also help you identify the root of your high turnover rate and find a solution for this.

However, you should also make sure to appreciate and take immediate action for the majority of your employees’ insights about your company. Let your employees know that you heard them and that you are planning to do something to resolve any issues.

Remotify your team! 

Remote employment and outsourcing provide various benefits for companies worldwide. However, it is important to note that there is a big difference between traditional retention techniques and retention solutions for remote workers. But, if you follow all the tips mentioned above, it will be easier for you to keep your remote workers happier and have them stay with your company.

We understand that some might be complicated to do remotely such as the onboarding process, laptop procurement, payroll management, and getting monthly feedback, Remotify can help! Our Employer of Record services will allow you to simplify your outsourcing and onboarding processes as we handle the complexities for you. Check out the EOR services that we offer here or schedule a call with us now!