The Great Resignation is showing signs of slowing, but there is a significant disconnect between management and employees on what it takes to retain workers in the post-COVID work environment.

A new survey from Nationwide revealed that as in-office work rebounds across the country, employees want continued flexibility with where and when they work. However, most business owners expect to be working in person full-time a year from now – leaving 1-in-3 owners nervous about announcing their company's return-to-office decisions and the impact it could have on retention.

"For some workers, the ideal environment is in the office while for others it's virtual. There are also many who want a combination of the two," said Nationwide Chief Human Resources Officer Vinita Clements. "At Nationwide, we believe it's most important to focus on our culture and provide the type of flexibility that allows professionals to be their most productive, creative and collaborative from wherever they work."

Businesses and their employees are disconnected on post-COVID perks

Nationwide's latest Agency Forward survey suggests the Great Resignation trend may be cooling as few business owners reported increased resignations over the past six months and only 4% of employees say they started a new full-time job during that period. However, employee retention challenges are still weighing on business owners after ballooning during the pandemic.

Many owners also appear out of touch with why their employees are leaving. Three-in-10 owners say resignations are due to employees wanting to pursue a passion and 28% believe employees were just burnt out or didn't have enough work flexibility. But employees cite better job security, stronger cultural fit, or more competitive financial incentives as their top reasons for seeking a new job.

"Three-quarters of U.S. workers received flexibility with how and when they worked during the pandemic, and of those who didn't have flexibility, 42% considered leaving their jobs as a result," said Linda Stueber, Senior Vice President for Commercial Lines at Nationwide. "Employers who are able to demonstrate continued flexibility and personalization for employees in their work will be most successful in today's competitive labor market."