The Great Resignation

 We are now being faced with what is being termed The Great Resignation.

The term was coined by Anthony Klotz to refer to the significant number of people who will leave their jobs post pandemic.

In his words:

 “The pandemic has made many realize their job does not contribute enough (or at all) to their pursuit for happiness and meaning, and they have decided to invest their energy elsewhere — in new jobs, new careers or in other aspects of their lives (e.g., family, travel, creative endeavors).”

The numbers

Many companies have conducted research to find out how many employees are thinking of leaving their employer post-pandemic.

These are some of the findings.

Microsoft – 46% of employees globally planning to move

Prudential – 26% of US employees – 1 in 4

Personio – 38% of employees in UK and Ireland

Monster – 95% of US employees

US Bureau of Labor Statistics – 4 million people in US quit their job in April 2021, a 20-year record

The following chart from Culture Amp illustrates the trend in the US.

Chart: Culture Amp  Source: U.S. Bureau of Labor Statistics  Created with Datawrapper

Despite these figures, many employers are still sceptical. A survey by human resources software company Tinypulse found that on average, human resources and C-suite leaders expect only 8% of their employees will quit post pandemic. One quarter believe no one will quit

These HR and C-suite leaders have one massive shock coming their way.

You can choose to put your head in the sand and hope it won’t happen or take action to stem the exodus.

The cost to you

If you do not act, what is it going to cost you?

I live in the state of Victoria, in Australia and the Business Victoria website provides a staff turnover calculator.

It only asks for three inputs – the number of staff in your organisation; the average hourly rate; and the number of staff resignations per year as a percentage.

The Australian Bureau of Statistics states that the median hourly earnings as of December 2020 was $36.

Using that hourly figure and the Microsoft turnover prediction of 46%, the following table shows you the potential annual cost of turnover for your organisation based on your headcount.

Where are you on that scale? Can you afford not to act?

Actions

1.    Offer flexibility

Most of your employees have had a taste of freedom and flexibility during the pandemic, whilst being forced to work from home. They have been able to plan their home life around their work life rather than it being the other way around. They have welcomed the wake-up call that work if what we do and not where we go. They have embraced the chance to work where they want, when they want and how they want.

They are not going to give that up.

You can demand that everyone returns to the office for five days-a week and work from nine-to-five, and then watch the backlash as your employees leave in droves or determine how you can provide the autonomy and flexibility that your employees desire.

There are many operating models for the future of work and much has been written about hybrid working. There is no one-size-fits-all approach and what one organisation is doing does not mean it is the right thing for you to do.

This is where you put in the hard work and determine the model that will work best for you and your employees.

2.    Employee experience

Your employees are now in the driving seat. Having proved that remote working can work, they have realised that they are not limited by geographical location when they are looking for another job. They can literally work for any employer in any location. Their choice is boundless, and they can be more selective.

They are looking for a great employee experience. They want an employer who makes them feel valued and provides a sense of belonging 

There are many aspects to the employee experience across many stages in their time with your organisation – from recruiting, hiring, onboarding, developing, engaging, wellbeing, performing, through to departing.

The experience pivots around the culture, and enabling employees to remain productive, healthy, engaged and on track. It has many layers including easy-to-use technology for communication and collaboration and continual learning and development opportunities. There are of course all the other aspects that whilst important, are no longer employee top priorities including pay, leave and other financial benefits.

The employee experience is multifaceted, and the complexity can be a challenge. But there is one good place to start and that is by asking your employees for feedback.

You cannot create a great employee experience from the board room. You must get out there and find out what your employees value and want.

It is important to remember that your employee experience is also your brand. Employees share their experiences with other people across multiple channels.

3.    Leadership

The future of work is the future of leadership. Employees are not coming back into the office on a permanent basis.

The fact is that most leaders are not ready to lead a team that is distributed across various locations. They are not ready to lead the hybrid team.

Leadership requires a fundamental mindset shift. The infographic highlights the areas of leadership that need development to lead a high performing hybrid team.

C 2021 Karen Ferris

The effective hybrid team is built on a foundation of trust and mutual respect.

Leaders empower their employees and provide them with autonomy and clear direction. There is no proximity bias rather an environment of inclusivity and equity regarding of where an employee is located.

These leaders know that the future is work is not achieved by crossing a finishing line rather it is a continual race of experimentation and improvement to retain and attract the best talent.

There is no place for micromanagement and employee monitoring. Good leaders measure performance based on outcomes and value delivered.

4.    Wellbeing

Employee wellbeing was a priority for some leading organisations prior to the pandemic. Now it must be top of the list for every organisation. The impact the pandemic has had on your employees cannot be underestimated. It has exacerbated the stress and anxiety employees were feeling pre-pandemic due to the pace of change.

The pandemic has added uncertainty, anxiety, concern, loneliness, financial pressures, care-giving challenges, isolation, and grief.

Organisations themselves are contributing to this uncertainty through their lack of communication about their plans for work post-pandemic.

Employees are increasing their demand for employers to provide holistic and comprehensive programs for mental wellbeing in the workplace. They want and need more than point solutions such as yoga classes and gym subscriptions. You cannot yoga your way out of burnout!

A survey by US company Ginger – a mental health platform provider – found that 85% of employees said behavioural mental health benefits were important when evaluating a job.

Now that employees have more choice of employer, employers will have to step up if they want to be an employer of choice.

Most organisations are attacking the problem with reactive measures that address the mental health condition after it has occurred. Leading organisations will also proactively address the issue by removing the underlying causes of mental health issues.

You cannot afford to do nothing. Employee wellbeing must be a priority.

Summary

You can stop The Great Resignation from your organisation. Provide employees with the flexibility and autonomy they are looking for. Address your employees needs and improve their experience by having a conversation with them.

Invest in leadership development for effective leadership of hybrid teams. Make employee wellbeing a priority with a holistic approach, not point solutions.

This is a no-brainer.

If you have around 1000 employees and you do nothing – you could lose $10,634,832 in one year through attrition. Investment in a greater employee experience, leadership development and wellbeing programs is a fraction of the cost.