The term The Great Resignation was coined by psychologist and professor of management Anthony Klotz in May 2021. Also known as the Big Quit, it has come to capture a mood as much as a movement, as a huge wave of resignations has hit companies around the world.
In this article, we examine some of the reasons why this has happened but more importantly, we look at what can be done to counter this mass exodus, why it’s important to act in these times, and why your culture matters.
Voting with their feet
The statistics are stark. By the end of July 2021, there was reported to be over one million vacancies for the first time in the UK and according to the Harvard Business Review, 4 million Americans quit their jobs in July 2021, there being a record-breaking 10.9 million vacancies by the end of the month. The period saw a noticeable increase in resignations in mid-career employees and the article suggests that this could have been in part driven by the pandemic blowing the lid off an already bubbling pressure pot. Having been given an opportunity to examine their work-life balance, many had a chance to rethink their goals and working conditions.
‘From organisational research, we know that when human beings come into contact with death and illness in their lives, it causes them to take a step back and ask existential questions,’ Klotz told Insider. ‘Like what gives me purpose and happiness in life?’
Those already suffering from the effects of exhausting work practises were tipped over the edge to walk away, even in times of uncertainty. Lack of connection to their employer and incompatibility with the systems in place became intolerable.
The Great Re-engagement
This has made reflective and reactive employers sit up and listen. In order to attract and retain the right people, they’re investing in their talent. Recent times have sparked a necessary and long-overdue curiosity about what people want. The conversation about what needs to change and how it can change, whilst maintaining productivity is well underway.
Are you part of it?
A Glassdoor survey found that 68% of millennials will access an employer’s social media to explore their brand before they apply. Your messaging and your culture matter.
Let’s look at these candidates’ top priorities:
● 41% said they would be prepared to take a lower salary for hybrid working.
● 47% said they’d leave their job if they weren’t offered it.
● 80% said they’d be more loyal to their employers if they had flexible options.
How and where someone will choose to work has moved up the priority list and means that there will have to be a considerable change in the way that teams are organised, managed and led.
The Great Rethink
This not only involves a restructuring of systems but also retraining and giving a different level of support to managers and leaders. These are the people who will be responsible for implementing and overseeing progress and flexing to its needs.
Is it workable?
The simple answer is yes. Rethinking employee experience will take a different approach but there are demonstrable business as well as human rewards. One study found that companies actively reformulating and enhancing EX ar
● Five times more likely to engage and retain employees.
● Five times more likely to foster a sense of belonging and create a rewarding place to work.
● Twice as likely to exceed their financial targets.
● More than twice as likely to achieve customer delight.
● Three times as likely to be able to innovate and adapt to change, which is vital in these times.
Clearly, there is an imperative to effect creative change but for this to happen there needs to be a shift on operational, mindset and organisational levels.
Quality conversations
Resignation does not happen overnight or in isolation. It is part of a process. What would happen if we had the kind of conversations that happen at an exit interview long before someone thinks of leaving?
The Harvard Business Review lists five career-defining questions to investigate how someone feels about their position and what can be done to actively support them:
● How would you like to grow in the organisation?
● Do you feel a sense of purpose in your job?
● What do you need from me to do your best work?
● What are we currently not doing as a company that you feel we should do?
● Do you have the opportunity to do what you do best every day?
Questions like these open up a space of vulnerability and honesty between both parties. There is a frank exchange of ideas, and the employee feels listened to and seen. Their insight is invaluable for reformulating working practice, building strong relationships and initiating change.
Why culture matters
We’ve learned that the key elements of re-engagement with the workforce include a radical rethink of how people work and being genuinely inquisitive about what makes humans productive and imaginative. Ideas and practices that traditionally led to burnout like burdensome workloads, lack of mental health support, micro-management and poor channels of communication must be laid open and scrutinised, but it goes further than this: we need to look at what needs to change, how is change going to happen and who is going to facilitate this?
Diversity and inclusion sit at the centre of this process. It’s all well to say that everyone should feel valued and safe regardless of who they are and where they’ve come from but how do we throw the light on blindspots and then come up with solutions that work?
It starts with having a solid vision. Keeping this in mind allows for systems to be streamlined and adjusted to meet the needs of the team and opens a space for prioritising that which is important. We saw above how new talent values a quality environment and well-being over financial reward, so it makes perfect sense to align our culture to this.
These considerations go beyond team and organisational level when you consider the increasing importance of ESG on investment and financial opportunities. A company’s approach to environmental, social and governance concerns can be the difference between growth and stagnation in a fast-changing climate.
The Great Rewrite
Attract the talented humans you need and retain the ones you already have by making sure you’re not just talking a good talk – you’re rewriting the rules from the ground up.
Here are a few things to put in place (if you haven’t already):
● Someone from your senior team needs to monitor and reply to comments on Glassdoor.
● Demonstrate your commitment to flexible working in practical ways:
- Break teams into smaller units to aid cohesion and co-working.
- Instigate times when everyone is working at the same time, like at the beginning of a project, at strategic points or one week a month – then hybrid, office and home workers can be in sync.
- Overhaul the way you share and update information, so everyone is in the loop.
● Make space for autonomy. Favour communication and facilitation over micromanagement.
● Clarity is key – your responsibility to them and what they can expect from you.
● As we’ve seen, recognition and reward go beyond financial recompense. Rethink the ways you show genuine and generous gratitude.
An exciting challenge
It’s true that we live in times of rapid change. The pandemic has forced our hand to rethink the way we view our teams, the way they work and the places they work from. Management and leadership skill sets have had to incorporate a greater degree of empathy, compassion, flexibility and human-focused problem-solving overnight, the benefits of which have been felt by everyone.
There is no way back now.
If you want to retain and attract the talent your company needs to succeed, it’s time to acknowledge that the days of prioritising financial reward over working culture are over. It was never appropriate or desirable but it was what the market tolerated.
What lies ahead? Fresh, new opportunities to explore healthier, more sustainable ways where everyone feels welcomed, valued and safe. An environment where people can thrive can be enhanced further still if we take the time and energy to revisit and rethink our systems, culture and attitudes.
How an organisation is seen to perform in terms of culture and ethics is vital – both for attracting the right people and the right investment. At the heart of a sound ESG culture is a genuine desire to do right and that involves listening in, rethinking the rulebook and reengaging with what really matters.
Let’s step forward into the Great Re-engagement.