Be Prepared to Adapt or Be Prepared to Lose
When your company reopened this year, did all of your employees return? Did some resign? If you lost workers, you aren’t alone. According to multiple recent news articles, millions of formerly full-time workers resigned this past spring (and continue to turn in resignation letters) because they felt it was time for a change.
In May 2021, Texas A&M University professor Anthony Klotz coined the term “The Great Resignation” and predicted that many people would choose to resign from their jobs rather than be forced to return to in-office work. He realized that workers who held onto secure jobs during the scariest phases of the shutdowns were starting to question why pre-pandemic workplace practices are considered “normal.”
The pandemic shutdowns and the consequent rise of remote working had given people more time to think about the fragility of life and the importance of work/life balance. Employees learned that daily life could be richer if they spent less time commuting to office buildings and spent more time enjoying family life, exercising, or pursuing favorite pastimes.
Rather that return to the office — to inflexible employers and the stresses of the way things were — talented employees are simply choosing to quit. Some will get snapped up by more progressive companies who are willing to meet employee needs. Other former full-time employees will become independent freelance workers. And then there are those that used the extended unemployment benefits to travel, to build independent side businesses, or to prepare for career changes– and aren’t returning to the office or former jobs.
How The Great Resignation is Affecting Business Owners
For employers, these are perilous times. If you don’t have the personnel required for on-time delivery of promised products, your customers will seek other suppliers. And if you are understaffed during busy times, the remaining on-site employees will feel stressed and burned out.
On the upside, workplace turnover provides an opening to refresh your culture and redraw your organizational chart. On the downside, the cost of a complete staff turnover could be astronomical.
Before recruiting replacement employees, think about what types of employees you will need most in the next five years. Figure out what it will take to compete for talented workers who left other jobs behind. Give serious consideration to the requests of existing employees, to retain the trained and talented workers you still have.
Take Action Now
It’s hard to predict how many employees will seek to return to full-time work after the extended unemployment benefits expire or people discover that freelance work can be just as challenging as a full-time job. Here are some steps to consider.
Understand the needs of each employee, especially those you wish to retain.
Each employee has different wants, aspirations, and challenges. Some may be struggling with childcare or home-schooling issues. Others may need more flexibility to deal with health issues or care for aging parents. Consider offering more flexibility in scheduling, if that’s what is needed, and/or offering additional perks and benefits.
Think critically about your pre-pandemic workplace culture.
It’s easy to boast about having a great workplace culture; it’s much more difficult to bring that culture to life through everyday behaviors and processes. Now is the time to reset that culture to reflect the realities of a changing workplace.
To earn loyalty and trust from employees, be open to adapting to their changing needs. This will set your company apart when competing to hire and retain the best talent.
Make sure employees have equal opportunities for training, the work/life flexibility they need to be most productive, and a clear understanding of your company’s values and strategic priorities.
Get out of the way and don’t micro-manage. Giving employees the freedom to excel creates opportunities for them to use their talents to the fullest and earn recognition for achievements. Your goal is to motivate Hall-of-Fame teammates and winners.
Remind managers to set good examples for the employees they are trying to inspire. And be transparent about what goals and activities may be rewarded with promotions or raises.
Eliminate employee-unfriendly contract restrictions such as “non-compete” clauses. The lack of a non-compete clause can set you apart when competing to hire and retain the best talent.
Update your employer brand.
Does your company have a reputation as a good place to work? Are there positive or negative reviews of your business on employment websites, such as Glassdoor? Are current employees encouraging others to apply for openings? Do social media posts showcase the diversity, creativity, and successes of your employees?
Evaluate how and where work gets done.
The pandemic brought sharp awareness to those jobs that can only be done on-site and those that can easily be done remotely.
For those employees that transitioned to full-time remote and managed to do so successfully, reconsider whether 100% in the office is really necessary. While there are those that work better in an office environment, some will wish to continue full-time remote work, while others may do well with a hybrid setup. Being open to your workers’ desires will help you retain your best talent.
Unfortunately, people who must be physically present for work sometimes resent those employees whose positions can be done remotely. If friction among the two sets of workers occurs, look for creative ways to restore harmony.
Flexible starting and ending hours can help onsite employees work around their obligations and avoid traffic. A more generous leave policy allows onsite employees to handle personal business that can only be conducted during regular business hours. Consider providing extra perks to on-site employees such as company-sponsored lunch, onsite yoga class, or monthly happy hours.
Make plans for managing freelance workers and part-time employees.
Until recently, many companies didn’t think about how they could strategically use freelance or temporary part-time help to fill the gaps in their current workforce.
Freelancers, independent contractors, and temporary staff members respect companies that have processes in place for onboarding them, including them in team meetings, and paying them promptly.
Consider what work could be handled by automated processes or robotics. Forward-thinking companies have already learned they can do more work with fewer people when they use automated workflows and robotics to handle many of the manual tasks that employees found boring.
If you are under-utilizing the automation software you already own or are having trouble integrating multiple types of workflow software, the LaManna Consulting Group can recommend experts who can help.
How The Great Resignation Affects Business Sellers
If you plan to sell your business in the next three years, keep in mind that potential buyers will look closely at your workplace culture, organization chart, and the talent of your leadership team.
Your employees are the driving force behind your business. Retaining your best workers and snapping up new talent by being flexible to employees’ needs will not only help grow your business but set you apart from the ‘old school.’
Business buyers understand that most companies experienced pain and disruption during the pandemic and post-pandemic recovery. How well your leadership team responds to the aftermath of the Great Resignation will make a positive (or negative) impression on potential investors or buyers.
The LaManna Consulting Group is committed to helping businesses buy, sell, and grow. If you find yourself stuck in these changing times, give me a call and let’s chat.
Additional Reading:
A creative way to stave off the Great Resignation—and keep your teams happy
A key mistake leaders are making is causing the Great Resignation. Here are 3 ways to fix it
These industries are being impacted most by the Great Resignation