The Great Resignation – what’s it all about?

The Great Realisation

With lockdown restrictions finally starting to loosen after one hundred days in Auckland, an appointment with your hairdresser might be top of the to do list this week! Looking ahead, what are the likely repercussions of having endured our longest lockdown to date?

Is it simply a new buzzword or a trend that we can no longer ignore? “The Great Resignation” has been happening offshore for some time. With many reassessing their job and desired lifestyle, lockdowns have been the push they have needed to start looking for something that is more closely aligned with what they want.

Employers are already keenly aware that labour shortages in many sectors, exacerbated by border restrictions, have made it hard to recruit. Now research strongly suggests that managers need to worry about retaining their current workers too.

What are we seeing?

Recent research by Microsoft suggests that 41% of workers globally are considering quitting their jobs. Here in Aotearoa New Zealand the latest instalment of AUT’s Wellbeing at Work study, should ring alarm bells for employers, says the academic behind the rolling survey of 1000 Kiwi workers. Dr Jarrod Haar, a professor with AUT’s School of Business, sampled attitudes at three points during the pandemic: May 2020, December 2020, and April this year. Now with Delta the latest development in a Covid-19 disruption that contrary to expectations, has made workers even more mobile.

Employees’ intention to leave their current job has risen sharply during the pandemic with people thinking about moving to greener pastures. Survey results showed 46% had high turnover thoughts, 25% moderate, 18% low and only 9% had no turnover thoughts.

The great resignation is looming. Perhaps differently from overseas Haar suggests. The biggest driver here is the lure of new job opportunities; more pay, more personal development, or more “making a difference.”

Act Fast

With our international borders opening next year, and Kiwis potentially looking overseas, at what level do we call it a crisis? With unemployment currently at 3.4% in NZ, finding talent is already proving difficult across industries and regions. Organisations and recruiters are actively targeting a passive candidate market to attract talent, with a good degree of success. What if our fears are realised and it also becomes the Great Migration when our borders open?

Haar says the survey findings should be a wake-up call for employers and further incentivise them to look after and retain their current employees.

How can you retain your people and attract new talent?

Finding ways to connect people to their organisation, helping them find their purpose is a start.

“We follow this new kind of leader through upheaval because we have confidence NOT in their map but in their compass”   – Amy Edmondson

Leaders

• Be clear about what success looks like for your organisation based on your purpose
• Take the time to truly listen and connect
• Coach rather than direct
• Be willing to test, learn and rethink. Be prepared to change the plan

Don’t think through your next moves in a vacuum; include your employees in the process. Look to them to help shape the plan and solutions. Research conducted by McKinsey & Co suggests that leaders aren’t listening to their people nearly enough. Don’t be one of those leaders.

Do you have the right leaders in the right places?

Mckinsey noted in their research this problem can be particularly damaging, especially in hybrid environments, where new leadership skills are required. Invest in upskilling your leaders at all levels. One of the more common reasons we hear from people who are moving on, they are leaving their Boss not their organisation. Training and capability building will be crucial.

Is your work environment transactional?

If your only response is to raise salaries, your best talent will always have a better cash offer elsewhere. We’ve had a glimpse into people’s personal lives and homes. We’ve met families and pets. There is a new expectation for a more holistic understanding of their needs, as well as recognition and reward for their experience and skills, along with the desire to feel fully valued and supported. Adopting a whole person strategy is becoming non-negotiable.

WFH and flexible working

More often than not we are seeing flexible working options expected as the norm when people are changing jobs. Many employees have been working remotely and want to continue doing so. Many leaders see a return to the office as a way to address lingering culture and connectivity concerns. Companies that dictate that all employees must return to the office and don’t work on better WFH or flexibility options, are at the greatest risk of losing staff to roles that offer this.

Career paths and development opportunities – can you provide it?

Handing out significant pay rises isn’t always feasible for business owners. Most people want career progression. If you can’t offer this now can you set up a career development pathway for your people? Work with them to make a plan and outline how you can help them get there. It could be additional training, mentoring or a change of responsibilities. It can help them visualise a future for themselves within your business.

Looking ahead

The Great Resignation is a trend we simply can’t ignore. Like it or not employees are considering leaving their jobs or leaving the workforce. This is the time to listen, learn and make changes. Start with a focus on the relational aspects of work that people have missed the most. By understanding “why” they are leaving and by acting thoughtfully, you may just be able to turn the Great Resignation into the Great Attraction.