Growing up, I watched my immigrant parents build their small business and attempt to navigate the tricky regulations of the automobile industry. Year by year, their workforce grew, and they evolved by implementing more employee-friendly policies. Before the pandemic, a visit to their dealership involved meeting a whole cast of characters, including the employees‘ dogs and children, when they could not find other support. While my parents attempted to offer flexibility to their employees, in reality, often the only resource their small business could offer them was a respectful space to share their ideas, questions, or concerns.

Unfortunately, like many other small business owners impacted by the COVID-19 pandemic, my parents were forced to close their doors and cut their losses. In retrospect, their time as small business owners showed me that the most essential qualities an employer can lend to their employees are empathy, honesty, and grace. My parents were not immune from preventing employee defection, especially in the fickle auto industry. Still, they worked hard to retain the workers advocating for changes from the norm they understood. Nowadays, employers in every industry are subject to concerns about how they will live up to their employees’ expectations.

Since the global pandemic transformed the employment landscape and led to the , or ‘Big Quit,’ employers continue to struggle to maintain a committed workforce. Employers recognize that their previous inflexible policies and low wages with minimal incremental growth no longer promise employee retention.

Even if employees stay in their positions, they may embrace a new phenomenon called “quiet quitting,” in which they perform only the minimum requirements of their jobs. The employees may show a lack of enthusiasm or effort, often because they feel unvalued or underpaid. Because of the labor shortage, employers often must either tolerate the quiet quitters or desperately search for new ways to satisfy them.

Offers of better benefits, higher salaries, and flexible work schedules and places are useful strategies to avoid high turnover. Additionally, a common reason why employees sue their former employers or turn to union organization is often directly related to their work environment. Employers should reevaluate their workplace policies to ensure that workers can voice their concerns to a nonjudgmental channel and promote respectful behavior throughout the company.

Here are a few ways that employers can address workforce retention issues:

Don’t ignore employee complaints

Understand concerns of employees and consider their suggestions on how to improve the workplace. When employers stay informed and open-minded to changes of policies that no longer serve their employees, a trickle-down effect might be improvement of the customer experience.

Provide opportunities for growth and development

Employees want to continue progressing in their careers, especially at companies that contribute to their professional development. Employers should offer training and development programs with opportunities for advancement within the company. Upskilling employees will keep them motivated and engaged while also creating a return on investment for the company.

Implement monthly or quarterly check-ins

Monthly and quarterly check-ins with employees help facilitate better communication between supervisors and staff, especially if employees lost that connection during the pandemic or continued working remotely. By meeting with employees several times throughout the year, supervisors can communicate expectations, provide feedback, and gauge job satisfaction.

Offer ‘stay’ interviews

Employers are finding new ways to satisfy their high-performing, longtime employees. Unlike the ‘exit’ interview, which occurs after an employee resigns, the ‘stay’ interview allows the employer to improve employee morale and address concerns before the worker decides to leave. A yearly stay interview involves an informal conversation in which the employer expresses how much it values the employee and asks for ways to improve their experience. Employers can also inquire about the employee’s career objectives and potential new roles for the person within the company.

Communicate feedback consistently

All employees benefit from hearing positive and constructive feedback, which encourages them to improve their productivity. Recognizing and appreciating employees’ excellent work is crucial to building employee morale.

Offer competitive salaries and benefits

To ensure employees feel valued for their daily contributions, provision of competitive salaries and benefits should remain a top priority for any company. Competitive salaries also attract the most talented and loyal employees. Employers need to consider the current rise in inflation, the high cost of living, and how much competitors offer their employees in similar positions.

Provide mentorship

A great mentor can make a difference for new and longtime employees alike. A mentor can be a guiding force who informs a new employee how to meet the company’s expectations. A mentor also can give feedback while allowing employees to share honest questions or concerns. Employers should provide employees a mentorship option throughout their employment.

Permit flexible working arrangements

Most employees are not receiving compensation for their daily work commutes, at least not directly. Employers should offer flexibility to work remotely on a hybrid schedule, especially if the position allows for it. The COVID-19 pandemic forced employers and employees to embrace the convenience of remote work. Employees benefit from a hybrid schedule with greater productivity, less commute time, and flexibility when scheduling meetings with clients and co-workers. The value of hybrid or fully remote options is one of the least costly benefits that employers can offer their employees.

Develop a respectful company culture

Cultivation of a respectful and inclusive company culture is another critical factor in building and maintaining a committed and satisfied workforce. If employees arrive to a workplace dreading their daily encounters with difficult co-workers and supervisors, they will likely quit. Employees will often put up with lesser pay than they feel they deserve if there is an excellent company culture. Most new talents initially choose and stay with a company offering the best culture. Likewise, employers should take time to hire talent that fits into the culture and values.

Conclusion

The days of compliant employees remaining in their positions until retirement age are long gone. Small and large businesses alike need to take time to evaluate their employee retention strategies and minimize employee defection because no successful company is immune from reliance on a dedicated, loyal, and satisfied workforce. Employees now understand their worth and expect their employers to do the same.

Orchid Tosh is an associate in the Portland office of Fisher Phillips, a national firm dedicated to representing employers’ interests in all aspects of workplace law. She represents employers in all aspects of labor and employment law. Contact her at 503-205-8066 or otosh@fisherphillips.com.

The opinions, beliefs and viewpoints expressed in the preceding commentary are those of the author and do not necessarily reflect the opinions, beliefs and viewpoints of the Daily Journal of Commerce or its editors. Neither the author nor the 91��Ƶ guarantees the accuracy or completeness of any information published herein.

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Exit interviews are a very useful tool and can provide valuable information to an employer to help avoid future claims and improve employee retention. They are also the perfect time to provide a departing employee with their final paycheck in compliance with Oregon’s tight timelines.

Exit interviews

The structure of exit interviews will differ depending on whether the separation results from a voluntary (i.e., the employee resigns) or involuntary (i.e., the employee is fired or laid off) termination. When an employee resigns voluntarily, an exit interview is an opportunity to obtain feedback from the departing employee on things the employer is doing well and things that can be improved upon. Additionally, an exit interview is a good time to confirm the reason the employee is leaving and assess whether the employee is harboring any grievances against the employer regarding unfair or illegal treatment. Taking time to meet with the employee and discuss these things during the exit interview can help avoid possible future claims from the departing employee.

In the case of an involuntary termination, an exit interview is not only an opportunity to tell the employee that their employment is ending, but also to provide them with a clear and concise explanation of the reason(s) why. These reasons should also be clearly documented in the employee’s personnel file, along with any information or other documentation supporting the decision to terminate the person’s employment (e.g., conversations with the employee regarding performance concerns, performance improvement plans, etc.). It is important that the reasons given at the time of termination match the reasons the employer would provide if they were defending a wrongful termination or other employment-related claim. This does not mean that the employer needs to provide every detail and consideration that went into the decision to terminate the employee. Instead, it is a good idea to keep the meeting brief and to the point, while still being clear but accurately communicating the basis for the separation.

Final paychecks

In Oregon, there are strict timelines regarding final paychecks. Generally, employers are required to pay an employee that is involuntarily terminated by the end of the next business day. The final paycheck cannot be mailed unless the employee requests it (and when an employee does request that their check be mailed, the employer should have the employee make the request in writing). Most of the time this means an employer should have the employee’s final paycheck ready prior to the termination meeting.

The requirements are different when an employee voluntarily terminates their employment. For example, if an employee quits with less than 48 hours’ notice (not including weekends or holidays), their final paycheck is due within five business days, or the next regular payday, whichever is sooner. However, if an employee quits with at least 48 hours’ notice, their final paycheck is due on their last day of employment; if that day is a weekend or a holiday, the final paycheck is due the next business day.

Failure to pay an employee their final paycheck on time can result in the employer owing the employee penalty wages equal to eight times the employee’s regular rate of pay for each day the employee goes unpaid, up to a maximum of 30 days. However, if an employee provides written notice to the employer that they are still owed wages, employers can limit the amount of penalty wages owed to 100 percent of the unpaid wages if they pay the employee the amount owing within 12 days of receiving the employee’s notice. There are some exceptions to this rule. Further, employers who intentionally fail to pay an employee’s final wages may be subject to a $1,000 civil penalty plus costs, interest, and attorney’s fees.

In addition to the standard permitted deductions applicable to other paychecks, an employer may deduct from an employee’s final paycheck for a cash loan to the employee if (1) the employee voluntarily signed a loan agreement, (2) the loan was for the employee’s sole benefit, and (3) the amount of the deduction at termination does not exceed the amount permitted to be garnished under state law.

Finally, Oregon employers are not required to pay an employee for any unused vacation time or sick leave. Whether an employee’s final paycheck includes unused vacation, sick leave, or other types of paid time off depends on company policy and past practices. If the employer’s policy is silent on whether vacation is to be paid in a final paycheck, the best practice is to pay it.

Missy Oakley is an attorney with Barran Liebman LLP. She represents employers in a variety of employment matters. Contact her at 503-276-2122 or moakley@barran.com.

Becky Zuschlag is a law clerk with Barran Liebman LLP. She partners with attorneys in employment, labor relations and benefits practices. Contact her at 503-276-2151 or bzuschlag@barran.com.

The opinions, beliefs and viewpoints expressed in the preceding commentary are those of the authors and do not necessarily reflect the opinions, beliefs and viewpoints of the Daily Journal of Commerce or its editors. Neither author nor the 91��Ƶ guarantees the accuracy or completeness of any information published herein.

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