The Great Wave of Resignations

Last week I did a little fun project and created a video to highlight responses to The Great Resignation also being called The Great Tsunami. I thought I would share the video content and images this week.

The great wave of resignations is being driven by what I have called The Great Realisation. The Great Realisation is the time for reflection employees have had whilst being bunkered down and adjusting to the changes and uncertainties foisted upon them during the COVID-19 pandemic.

They have reflected on what they want from life and work, and many have realised that they deserve more from their employer. The numbers speak for themselves.

The responses

These are how organisations are responding to the Great Tsunami.

The ostriches

These are the organisations just ignoring what the researchers, commentators, media, and consultants are all agreeing on. They have their head in the sand.

According to research that Microsoft conducted in March 2021, one month before the US reported a record 4 million resignations, 41% of the global population is planning to leave their current role within the next year and 46% want to make a significant transition in their career.

Some of these organisations believe the resignations are a direct response to COVID-19 and therefore once the pandemic is over, it will all go back to how it used to be.

There is a link but not the direct one you may be thinking about. The pandemic affected work on two counts - How we work (i.e., location), and when we work (i.e., work-life balance). Whilst in the short-term this caused concern and anxiety, over the long term it has “rewritten the psychological contract between employers and employees” according to behavioural scientist Aaron McEwan.

Employees have reflected on their relationship with work and considered who they want to work for and how they expect to be treated by an employer. This reflection has led many to realise that their current employer does not meet their expectations.

With the added awareness that most employees can work from anywhere, there are no longer geographical limitations when seeking a new employer. Employees are now in the driving seat – the world is their oyster. If organisations decide to keep their head in the sand, when they finally emerge, there will be nothing left.

The wishful thinkers 

The wishful thinkers are just hoping that they will ride out the wave and it will have minimal, if any, impact on them.

Many of these organisations believe that their industry sector will escape the tsunami. The truth is whilst some industries are feeling the impact more than others, none are exempt.

Recent McKinsey research (September 2021) across employers and employees in Australia, Canada, Singapore, the United Kingdom, and the United States found that the ‘Great Attrition’ is real and appears widespread across industries.

40% of employees stated that they are at least somewhat likely to leave their current job in the next 3-6 months.

The results by industry were:

Education - 32%

Good producing - 43%

Healthcare and social assistance - 36%

Leisure and hospitality - 47%

Trade, transportation, and utilities - 38%

White collar - 41%

The severity of the situation is that 36% of employees who quit in the past six months did so without having a job in hand. Employees have just had enough of bad employers.

So, there is no basis on which to say, “it won’t affect us.” It will unless you are already an employer of choice.

The minimalists

These are the organisations that think if they make some small changes, it will be enough to save them.

Even if small changes could have a big impact, most organisations are making the wrong changes. They are making the wrong changes because they do not know why their employees are leaving.

There is a great divide in the workplace which wrote about recently.

The same McKinsey research mentioned earlier, clearly shows that employers do not fully understand why employees are leaving. 

When asked why employees were leaving, employers cited:

·       Compensation

·       Work-life balance

·       Poor physical and emotional health

When employees were asked why they were leaving, they cited:

·       Not feeling valued by the organisation

·       Not feeling valued by their manager

·       No sense of belonging at work

Whilst those factors cited by employers are still important to employees, they are not as important as employers think. They are out of touch. Employers are focused on transactional factors whereas employees are focused on relational ones.

Employers need to ask their employees what would make them an employer of choice, listen, and then act.

There are plenty of potential employers making the necessary changes and opening their doors to your talent.

The misdirected

Following on from the great divide mentioned above, the prevailing action employers are taking is related to compensation and benefits. This is not what employees are looking for.

A new term emerging is “pandemic epiphanies” coined by Anthony Klotz – Texas A&M Psychologist - who also introduced the term “The Great Resignation.” The epiphanies are a result of employees making a deeper re-examination of what brings them a sense of purpose and fulfilment.

Those organisations responding by raising pay and trying to outbid the competition to keep their talent, are essentially doubling down on the old model of come to work and get paid. Those days are long gone.

Indeed commissioned a 2021 Workplace Happiness Study conducted by Forrester Consulting which revealed that nearly 50% of people believe expectations around work happiness has increased over the last five years.

Whilst many employers continue to believe that compensation is the top predictor of employee happiness, the study shows quite the opposite.

These are the top drivers of employee happiness at work.

• Energy - In most of my work tasks, I feel energized.

• Belonging - I feel a sense of belonging in my company.

• Purpose - My work has a clear sense of purpose.

• Achievement- I am achieving most of my goals at work.

• Inclusion - My work environment feels inclusive and respectful of all people.

• Trust - I can trust people in my company.

When organisations address these drivers of employee happiness and engagement, they will be on the road to becoming an employer of choice.

The employers of choice

These are the organisations realising that they need to make a fundamental change if they want to retain their talent and attract the talent they need to succeed. They have reached out to their employees to find out how a create employee value proposition (EVP) could be constructed.

Whilst every EVP will differ for every organisation as there is no one-size-fits-all proposition, I believe there are five key areas you must include and address.

·      Flexibility and autonomy. They are seeking flexibility that is driven by their autonomy to choose how best to use it. Organisations should not be leading with policies but principles to guide employees.

·      Great leadership. The adage is true – people do not leave bad companies; they leave bad bosses. Leadership development at every level of the organisation must be an imperative.

·      Holistic well-being. Employee well-being must be the priority for every organisation and every leader within it. The EVP must be that the organisation truly cares for every employee and ensures they use the holistic and contextual well-being offering made available to them. The proposition must be demonstrable.

·      Belonging and purpose. All employees want a sense of belonging and purpose at work. They want to feel that their contribution is valued. Belonging emerged as the top employee experience driver linked to engagement and well-being for 2021 in a Qualtrics global study.

·      Learning and development. Employees want continual learning and development. Organisation must have a culture of lifelong learning in their EVP. Continuing professional development is not an option. It is not a cost; it is an investment.

Summary

The choices employers make right now will have a direct impact on their ability to retain and attract talent, drive creativity and innovation and be an employer of choice.

Your EVP is your panacea to the great resignation. A great EVP, relevant to employees needs today, will enhance your employee brand, and attract the top talent as well as retain your existing valued competencies.

Organisations need to wake up and realise that employees rarely leave jobs they love doing. If you can make your employees love you and their work, you do not have to worry about that great wave engulfing the others.