Resources

 The Great Resignation isn’t primarily about the logistics of work. It’s about its meaning. 

—Jessica Stillman 

“War for talent.” 

“Skills gap.” 

“The Great Resignation.” 

Anyone in the business world who hasn’t been living under a rock for the past few years is very familiar with these phrases. They’ve served as the steady refrain in many conversations about the challenges companies face in their hiring and retention these days.  

There’s been a lot of talk about strategies for keeping employees around. Making their work more financially lucrative by giving them more money and better benefits is one obvious solution. But it’s only one part of a bigger picture: although some people are motivated purely by money, most people seek something more from their jobs. And unless a company succeeds in meeting those “something more” expectations, it will have a hard time with retention. 

Over the last year, voluntary separations have jumped as more and more people leave jobs that don’t offer what they want. It doesn’t look like this situation is going to improve any time soon. Managers and companies that don’t take action now will struggle to find and keep great employees. 

Why Companies Should Care 

Here’s the most obvious reason why this matters: the bottom line. Without appropriate and adequate staffing, a company can’t do what it does (e.g., provide a service, make a product) well enough to meet its market goals. A company’s operating costs also take a hit when turnover is high, with the researchers at Gallup estimating that “the cost of replacing an individual employee can range from one-half to two times the employee’s annual salary—and that’s a conservative estimate.” That’s just when one employee leaves. The damage is much greater when several employees or an entire team leaves. 

Beyond its impact to the bottom line, staffing instability is also detrimental to company culture. Frequent departures and new arrivals disrupt workflow and make it difficult for employees to build camaraderie and achieve top productivity. High turnover can torpedo managers’ efforts to build and sustain a top-notch workplace: 

Losing your best people means losing your reliable winners, your constant innovators, and your most effective problem solvers. Internally, it breaks down team morale. Externally, it can mean lost customer relationships. Depending on the quality of the exit, it can threaten your brand or, at worst, lead to litigation.

And of course high turnover affects managers. What does it say about someone’s leadership and management skills when their employees don’t stick around? Every manager should strive to be the kind of leader who can build enough trust and loyalty among their employees to make them want to stay. 

Why People Leave 

Understanding your employee’s perspective can go a long way toward increasing productivity and happiness. 

—Kathryn Minshew

People leave their jobs for many reasons. But whether those reasons are rooted in complaints about compensation or other more non-quantifiable concerns, ultimately they all boil down to one main cause: employees leave because they don’t feel valued and appreciated. 

During the Great Resignation, these departures have accelerated not only because employees are considering the reasons that have been there all along, but also because the uncertainty, loss, and fear that they experienced during the pandemic have caused them to reevaluate what they prioritize most in their lives and what they want from their work. 

Beyond inadequate compensation (whether real or perceived), there are plenty of other ways in which employees can feel unappreciated enough to want to leave their jobs. 

Poor relationships with their managers. The old saying “People leave managers, not jobs” isn’t a throwaway line—it’s the truth. Fortunately, being a “bad” manager isn’t a genetic condition but is actually something that can be fixed! Leaders who want their managers to be great at their jobs must give them the training and support they need so they can learn how to give employees constructive feedback, how to deal with problems effectively, and how to show their appreciation for their employees. (And any manager who can’t learn how to be an outstanding people leader should be replaced.) 

Not feeling part of a supportive and welcoming community. A strong company culture based on trust, respect, and individual empowerment can make employees feel valued (and also build their loyalty). By improving its diversity, equity, and inclusivity (DEI) initiatives, a company can do a better job of welcoming talented people of all backgrounds into the organization and respecting and supporting all of the employees who are already there. Managers who show empathy and support for their teams ultimately have more engaged employees. (Note that being empathic doesn’t mean being unable to fire someone. It just means making a genuine effort to listen, care and help them be successful in their role.)  

Not feeling that their concerns are being taken seriously. Ask for and listen to employee feedback. Ask them “what do you want?” and address their concerns even if it means being more transparent on any issues that can’t be addressed due to financial conditions at the company. The more the employees understand the inner workings of the organization (and how to read a profit and loss statement and a balance sheet), the more they understand the decisions that affect them. (That said, a manager should not ask for an employee’s input if they aren’t going to do anything with it. Asking for and then ignoring an employee’s perspective shows a lack of respect—and could send them walking out the door.) 

Not feeling that they are valued as individuals. No one wants to feel like a cog in a wheel. No matter how productive (or efficient or profitable or whatever) a company is, it is made up of people who each make their own contributions to the business. Celebrating company-wide wins is great, but managers should not forget to zoom in past the department and team levels to offer personalized and individual recognition to the people who make those successes happen. Help employees see the big picture and their role in the organization’s success (and then show them appreciation for it). 

Not having a sense of purpose at the company. When people are spending over 40 hours a week doing something, they often want that something to carry meaning for them beyond earning a salary to pay the bills. Employees do have specific roles and tasks to fulfill, but helping them find meaning in their work shows them that they are appreciated for more than their strictly defined contributions to the company’s profits.  

Not offering flexibility. This is a hot-button issue right now, as many companies are eager to get their employees back in the office (and every manager knows someone who’s been slacking off while “working from home” over the past two years). But few companies can make a blanket declaration that employees must return to the office without winding up with a very unhappy workforce. Companies such as Google and Amazon can get away with this, but “normal” companies that don’t take into consideration the flexibility that employees want and need in their daily lives will have a very challenging time keeping employees.  

Don’t Underestimate the Effects of the Pandemic 

When people talk, listen completely. Most people never listen. 

—Ernest Hemingway

The last two years have been hard—really hard. The stress of dealing with the COVID-19 pandemic has driven a lot of people to their breaking points: 

Many employees have gotten sick during this time, and dealing with the stress of getting caught up on missed or delayed deadlines is immense. 

Many employees who have evaded COVID-19 have been asked to support people who got sick (both in the office and at home).  

Lots of people have had to deal with disrupted or completely obliterated work–life balance, because of increased workloads and blurred boundaries between personal and professional spaces when working from home. 

Social isolation, which was a reality for most people for an extended period of time, is mentally, physically, and emotionally exhausting.  

Adding those factors to the long list of “reasons why people are unhappy about their jobs,” it’s no wonder the Great Resignation is happening right now. The general stress of living during a pandemic has, for many people, pushed them right into “burnout” territory in their jobs—and primed them to walk. 

Organizations that want to keep those employees around must, in addition to showing the types of general appreciation described above, show them understanding about how stressful the last two years have been: 

Managers should check in with their employees frequently, regularly, and meaningfully. And “check in” doesn’t mean asking about the progress toward a certain deadline or whether they’ve submitted their status reports. It means asking them sincerely, “How are you doing?”—and listening to what they have to say. 

Companies should offer flexible work arrangements to people who aren’t ready to return to the office yet (and are still able to meet their role requirements remotely). Most companies don’t need to rush their employees back into the office, especially if they are still getting everything done with remote or hybrid work arrangements.  

Leaders should communicate to their employees that they are integral parts of the community and not easily replaced, throwaway components.  

Organizations should show their employees that they appreciate and value them even more in light of what they have accomplished during the pandemic. For the most part, this costs nothing financially but can actually benefit the company by dissuading employees from leaving. 

Final Thoughts  

You never know when a moment and a few sincere words can have an impact on a life. 

—Zig Ziglar

In addition to offering competitive compensation, leaders should cultivate a culture in which appreciation is never assumed but freely and frequently given to demonstrate to employees an understanding of their worth and of the value of their contributions. Few people wouldn’t be happy to receive one of the “classic” displays of appreciation. These can include as experiential awards (concert tickets, restaurant coupons, spa vouchers, museum or amusement park passes, etc.); public praise via award ceremonies, company-wide announcements, or posts on the organization’s website or intranet; gift cards; or company swag.  

But managers shouldn’t don’t stop there: they should resolve to be the kind of leader who doesn’t just dole out awards but also shows appreciation by listening to employees and addressing their concerns. Ultimately, the most effective way to counter the Great Resignation is to make employees’ current situation one that they don’t want to leave.