The numbers for the Great Resignation continue to shock everyone. As cited by The Motley Fool, “Since the start of the pandemic, 20% of workers have changed careers,” and a further “46% of employees are considering a career change.” We’ve seen especially high turnover months during this time, including August 2021, when “4.3 million Americans quit their jobs.”
The Situation
According to The Motley Fool’s own research, “Two-thirds of those who changed careers since March 2020 did so as a direct result of the Covid–19 pandemic,” and, “Management was the most popular career transitioned out of and into.” This means that there have been a lot of leadership voids left by these changes.
Whether the pandemic is directly responsible for convincing all these people to change careers, or whether it just magnified an already emerging trend, as the Harvard Business Review contends, the fact remains that the workforce is in flux. Worse still, this difficult situation is made worse by a broader labor shortage that has been created by early retirements. Citing research by Goldman Sachs, Business Insider reports that”60% of the missing workers retired, many for good,” during the last couple of years.
Now, perhaps more than ever, retaining your existing staff is crucial. We all know how expensive and time-consuming recruitment and new-hire training can be, so most businesses don’t relish having to do it anyway. (Some businesses, like fast food, are predicated on high-turnover employment, but those low-wage, low-skill professions are especially hard hit right now. No small business should seek to emulate their formula.) So what can we do?
Poor Assumptions
The number one mistake employers make is assuming that most employees choose to stay, leave, or accept a new job simply because of money. It’s a factor, no doubt, but the situation is often more complex. Gartner has a detailed write-up on what triggers attrition at businesses, which includes factors like a lack of recognition, few growth opportunities, burnout, personal values misalignment, low flexibility, and so on. In order to retain people, businesses have to care. This requires an open-door policy where employees feel comfortable coming to discuss their needs with their immediate supervisors—if concerns about upward mobility, scheduling flexibility, and recognition are quickly dismissed or rebuffed, then those employees will start looking elsewhere.
Just as a business should obsess with its brand reputation among consumers, so too should it double-down on its reputation among the employees. If the people who work for your company love what they do, there’s no better form of advertisement for other potential hires. There’s a reason why the most successful businesses usually have such high job-satisfaction, and why they receive never-ending job applications. Simply put, those are the jobs people want.
Culture is Key
Indeed, it’s not enough to offer a big compensation package. You have to offer opportunity, affirmation, and purpose. In short, you need a vibrant, healthy company culture that will excite and inspire your workforce.
So, how satisfied are your employees? Would they say that they love it, or that they take pride in what they do? Would they encourage friends or family members to apply?
Let’s put our heads together and get these answers and more. The Brandt Group offers employee feedback surveys in addition to our other industry-leading services, like mystery shopping, leadership training, and so much more. Frankly, no one can afford to sit idly by, hoping the Great Resignation ends on its own soon. We should conduct ourselves like we’re always competing. Success isn’t guaranteed but earned. And to be successful, you must be proactive. So, let’s proact together, starting today.
