How to Bullet-Proof Your Company from the Great Resignation
Since April 2021, more than 15 million people have voluntarily left their jobs, according to the U.S. Bureau of Labor Statistics (BLS). The media has dubbed this trend “The Great Resignation.” If you run a company, manage a team of employees, or are just a consumer who has encountered slow service or seen the plethora of “Now Hiring” signs blanketing virtually every commercial establishment in America, then you know this is not media hype, but an actual, measurable phenomenon.
However, exactly what “The Great Resignation” entails remains a matter of some debate. Initially, it was viewed as a workers’ quasi-revolution in which millions of employees, displaced by COVID-19-triggered layoffs, lockdowns, and “essential worker” burnout, decided seemingly en masse that personal happiness and self-fulfillment were more important life goals than the “security” of jobs that they could, in fact, lose at any moment.
However, later studies have suggested workers aren’t quitting as much as they are leaving boring, thankless jobs in search of better pay and working conditions. (A sort of economic version of musical chairs.) And then there are the aging Baby Boomers who have responded to COVID by simply retiring early and/or starting new home-based businesses more in tune with their preferred lifestyles and goals.
However you look at The Great Resignation, all signs seem to point to the “quit rate” continuing to accelerate in 2022. In a recent survey, 55 percent of workplace professionals said they expect employee turnover to increase this year. It’s no surprise, then, that the top concern of most CFOs right now is labor availability.
So how will employers combat labor shortages in 2022? Some major corporations, like Amazon, Costco, and Wal-Mart are starting with the basics, increasing their minimum salaries to attract frontline workers. In my role as a corporate consultant, I have modeled extensively on this issue and have found that to be competitive, companies must raise their base salaries to between $18.00 and $20.00, depending on the region and city. (Base salaries vary significantly between the Bay Area and other California regions, as well as between urban and rural markets.)
Other companies are attempting to recruit and retain workers by offering perks like stock options and/or financial wellness incentives. Many businesses are also focusing on upskilling or retraining their existing workforce to deal with the demands of COVID and the anticipated post-COVID economy. Yet, still others have responded by accelerating the adoption of robots and artificial intelligence to minimize their need for flesh-and-blood employees altogether.
If you find your company is short-handed or fear you may lose needed staff to The Great Resignation in the coming months, here are some steps you can take to make the best out of what is unquestionably a difficult situation:
Promote Hybrid or Remote-First Working. During COVID’s initial lockdown phase, numerous companies, especially those in the creative and service industries, found they could still function with most or even all their employees working from home. Of course, many employees found they preferred this approach, if for no other reason than it eliminated the time-suck that is urban commuting. Many business watchers now believe that, to remain successful, companies must offer attractive work-from-home options, perhaps requiring employees to come to a central office just a few hours per week (if at all).
Rely Increasingly on Employee Input. The American workplace has traditionally been a top-down affair, with policy coming from the C-Suite and workers told to love it or leave it. No more. To attract and retain the right staff, companies must now seek and implement employee feedback when it comes to policy at all levels. This is actually a good thing. Workers who are more “involved” also tend to be more “engaged” and committed to their company’s success as well as their own.
Produce with Purpose. Even before The Great Resignation, companies were learning that businesses possessing a clear, articulated purpose—that have interests and commitments that go above and beyond merely increasing the bottom line tend to attract higher quality candidates, have lower turnover rates, and are ultimately more productive. The Great Resignation has only accelerated this trend, forcing companies to more closely examine what they are doing, why they are doing it, and what impact their activities are having on their communities, society, and our planet as a whole.
The bottom line: In 2022, people will no longer tolerate working for companies that treat them poorly, and they will hold employers to a higher standard than ever before. This is why you need to step up to the plate if you want to attract and retain talent amidst an employee-driven market. For more information on steps your company can take now in response to The Great Resignation, please contact me at laura@conoverconsulting.com.