Talent Squeeze
Nearly every day we see a news story about what is known as “The Great Resignation.” That’s because of the severe challenges for employers in today’s environment. Data from the Federal Reserve Bank of St. Louis showed a steady and significant increase in voluntary “quits” during the pandemic. And this trend isn’t likely to subside any time soon.
Many studies describe what is happening as a mismatch between the employer’s job and what employees want and expect. Based on a review of research and publications on talent and employee retention, the following is a list of action items an organization faced with a talent squeeze might consider:
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Take pay off the table. The first place to start is to make sure that the issue of money is not an issue. This may require a review of and updating your overall compensation package to be competitive. Next, re-level compensation for all your employees to detect and correct pay inequities, emphasizing people of color and women. Some companies are offering “boomerang bonuses” to bring back people who have recently left.
Provide opportunities to grow. One way to detect who might be susceptible to leaving is an employee’s answer to the question, “does my job make good use of my skills?”. Show employees that you value them even more than new hires by providing opportunities to grow and advance.
Focus on your organization’s purpose. An organization’s purpose is the reason it exists. Often it is the reason people choose to join and stay. In times of crisis, it is even more important that employees believe in what the organization is trying to achieve. Don’t just talk purpose; use it to shape the business. Employees seek a sense of connection.
Prioritize connection and meaningful work. Decades of research show that social connection has a positive impact on productivity. Having a good relationship with co-workers may be the glue that the employees need to stay. Organizations can make work more fulfilling by tapping into a sense of purpose, creating meaningful work, and ensuring employees feel valued by their organization and supervisor. One way to do this is to incorporate employee autonomy and empowerment in daily tasks and situations.
Take care of your employees and their families. Inventory and upgrade your mental health resources to ensure that employees understand what is offered and how to navigate the process. Now is an excellent time to acknowledge the personal sacrifices employees have made. For example, consider subsidizing daycare or giving more paid time off.
Embrace flexibility. Employees expect flexibility in their work environment regarding time, place, job description, and career path. One way to make sure your employees review and change your company is to involve your employees in creating their dream job. Flexible options need to go beyond the ability to work remotely, including part-time opportunities. These options need to be developed based on what specific changes are likely to retain and attract the employees they need.
Find out how employees feel. Some of the best information you can get about retaining and attracting employees can come from both current employees and those who have left. This only works if you make it safe for people to speak up and share their feelings. You may need a trained professional to conduct these discussions, but it will be well worth it. Management might consider town halls, small group discussions, or even an anonymous survey.
Invest in better managers and supervisors. The strength of the relationship with an employee’s direct manager is still one of the strongest predictors of employee engagement, satisfaction, and retention. Providing supervisors with the training and support they need to be better leaders signals to other employees that they are valued.
Make it safe to learn. Sometimes organizations mistake the absence of conflict and the appearance of compliance to mean that employees are happy and are not planning to leave. However, employees working in teams can have cultures that do not acknowledge setbacks or failures or, even worse, are punished. Highly productive teams seize opportunities to grow and learn. This environment requires a shared belief that interpersonal risk-taking is safe and that ideas, questions, concerns, and mistakes are valued.
Encourage employees to bring their whole person to work. To do this means rethinking the employee experience in a way that respects individual differences. It means adapting to changing circumstances by drilling down to determine when employees need more and different support.
As organizations move from survival mode and transform to meet the future, employees must be the first thought and not viewed as one component of the transformation. This change in mindset begins with the leadership team beginning their journey of self-care and reflection.