61% Senior Leaders Spend One-third of Their Day Solving Employee Churn Problem

The business landscape has been changing rapidly owing to several drivers, such as the pandemic, workforce shortages, and the threat of a recession. As such, when it comes to professional services businesses, multiple things, such as the future of work, cybersecurity, technology platforms, and finding new customers, may weigh on a top executive’s mind.Â

Kantata recently conducted a study to understand senior leadership’s top challenges and concerns in the professional services industry. The study also tried to know if the senior leadership was in sync with employees. According to the study, about 61% of senior leadership spend one-third or more of their day trying to solve the employee turnover problem.

The following are the findings in detail.

See more: A CEO’s Guide To Hiring and Retaining Talent in a Job Seeker’s Market

Employee-related Challenges Are on Top of Mind for Senior Leadership

According to the study, about 53% of top leadership have a problem hiring full-time employees. For the people who face this problem, the following are some challenges in hiring full-time employees.Â

About 42% feel their healthcare benefits are not competitive
About 42% believe their PTO and vacation policy is difficult to accumulate
About 39% believe their 401K benefits are not competitive
About 35% think they do not have a continuing education benefit to support employees’ professional growth.Â

The study also found that 61% of the top executives spend about one-third or more of their day trying to solve staff turnover issues.

Percentage of Independent Contractors on the Rise?

The professional services industry comprises a significant number of independent contractors (ICs). So, what is the state of ICs in the industry?Â

According to the study, 76% of independent contractors were full-time employees (FTEs) about a year ago. Further, Gen X and Millennials are the biggest groups who were FTEs just a year ago and now have become ICs.Â

Were independent contractors full-time employees a year ago?

Source: Kantata surveyOpens a new window

About 43% of FTEs were also considering becoming freelancers or ICs. Among them, the Millennials and Gen Z were more likely to consider becoming independent contractors. Only a few things are stopping some employees from becoming ICs. About 43% of FTEs said that the safety of a steady paycheck was stopping them, while 29% said health/dental/vision insurance and other benefits stopped them from becoming independent contractors. Yet, about 43% of employees said they were jealous of the freedoms and perks of becoming an independent contractor.

Have full-time employees considered becoming independent contractors/freelancers?

Source: Kantata surveyOpens a new window

About 52% of full-time employees also felt that ICs are beginning to outnumber them at their workplace.Â

How do ICs secure new work? About 39% leverage platforms, such as LinkedIn, and 39% leverage their memberships within a professional or networking group to secure new work.Â

Employees and Employers May Not Be on the Same Page

Employees have several expectations from their employers. While both parties seem to be on the same page on some issues, they may be out of sync with the others.

Regarding professional growth, 32% of the respondents were either unsure or did not believe that the senior leadership prioritized their professional development. Fortunately, 93% of senior leaders felt that a structured approach to professional growth opportunities must be a core element of the company’s benefits. About 91% of employees and 76% of freelancers/independent contractors agree.

However, regarding technology, senior management seems to be out of sync with employees. About 92% of senior executives said they seek FTEs’ advice or input on the technology they need to be more effective and make it easier to get work done. However, 28% of FTEs disagree with it. Further, 87% of senior executives believe they have implemented tools and systems that made FTEs and ICs more efficient and effective in doing their job. However, 16% of full-time employees and 21% of independent contractors said that the tools and systems their companies used were outdated.

Regarding employee benefits, 52% of senior leaders say that the level of benefits in their organizations is above average. However, about 36% of employees report the benefits being average. Fortunately, both senior leaders and employees agree that higher wages, better healthcare benefits and up-to-date tech would keep employees satisfied.

Has the company culture become better or worse since the pandemic? About 77% of senior leadership thought it had become better. About 68% of ICs and 55% of employees agreed with it. Regarding productivity, only 39% of senior leadership thought productivity was higher when people worked in a hybrid setting. However, according to a separate studyOpens a new window , people working remotely at least some of the time reported being almost 9% more efficient working from home than in an office. And that was 5% more than in April 2020.Â

Regarding onboarding, 83% of senior executives rated their organization’s onboarding process as effective. At the same time, 77% of employees and 51% of independent contractors agreed with it.

Steps Companies Can Take To Reduce Churn

The findings above show where the employers are out of sync with their employees and independent contractors when fulfilling expectations. For example, 92% of FTEs said they would be more loyal to the company if the employer invested in their professional development by offering perks, such as continuing education, masterclasses, and certifications. About 76% of ICs, too, said the same.Â

Similarly, work-related technology is an area where senior executives should actively get input so that employees and ICs get work done efficiently and effectively. Simultaneously, senior leadership should also focus on improving the benefits they offer to their employees and ICs.

See more: Focus On Existing Employees’ Skills to Fight Talent ShortageÂ

Conclusion

The Great Resignation is far from over as it can be seen that more employees are considering leaving their organizations if their expectations are met somewhere else. Hence, the senior leadership in the professional services industry should focus on empowering their employees and contractors with opportunities for professional development, the right tools and technology, and the right benefits that suit their needs. Focusing on these aspects will reduce the burden on senior management.

What do you think companies can do to retain employees in the professional services industry? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .