The Great Resignation

the great resignation

Executive leaders and Human Resources departments all over the globe will be focusing on solutions to critical challenges that 2022 and beyond uniquely represents. If you want to be successful, what got you here won’t get you there. Here’s are some things companies will wrestle with in the next several years:

  • Unprecedented employee attrition and dramatically increased workforce mobility require expert talent attraction and a strong emphasis on employee retention.
  • Tackle issues around the evolution and leadership of multi-generational team members must be agilely addressed. 
  • Keeping pace with new talent needs in benefits, compensation, and culture is necessary to make the company become one of the best places to work.
  • Strengthening DEI and B (Diversity, Inclusion, Equity, and Belonging) programs is increasingly vital so that companies can innovate, change, lead and grow as the communities we serve innovate, change, and coalesce.
  • HR practices and new initiatives must align, in “lockstep,” with the overall company vision/mission, and HR communicates that alignment consistently and clearly, both internally and externally.

 

What’s Next?

The road ahead will require bold action and risk-taking. Only time will tell whether pressure from employees and job seekers will create the needed change. But as the Great Resignation has made abundantly clear, there is no returning to the old way of doing business.

I believe the Great Resignation is a period of significant disruption. We are at a critical crossroads, and many of the challenges ahead can intensify already disparities. But we have a real opportunity to rethink what the future of work could look like, and finally roll up our sleeves and make the workplaces better than ever before. 

Finally, the hard truth is that labor shortages become more intense, and the labor markets become more competitive – and with an increasingly diverse workforce includes talent from different generations and demographics with different values, views, and traditions. Companies that are not making an effort to become more inclusive, socially responsible, and human-centered will not attract and retain top talent.

Tight Labor Markets

The global pandemic has changed the workplace permanently, and moving from instincts to data-driven decision-making is imperative. In addition, it is essential to implement many business practices to mitigate risk to your firm and improve operational efficiencies. 

Many of the unemployed are not available for jobs that need to be filled for multiple reasons. For example, some lack the right skills for the open positions; others prefer not to change occupations; still, others are not looking for work because of childcare responsibilities, discouragement about their job prospects, or preference for collecting unemployment insurance over earning wages. 

Companies must begin to focus on employee recruitment and retention. To remain competitive and productive, companies must continue to cast a much wider net to find, cultivate, and nurture talent. It is simply good business to do so. Companies that value and celebrate diverse team members, who can bring far more innovation to our thinking than ever before, and we must focus on those differences.

tight labor markets

What's Next?

Employee retention should rise to the top of every business leader’s to-do list. The problem won’t ease as the pandemic fades away and the economy improves. Companies dependent on employees must train their managers to be better managers, to keep the workers they have now. Below are some strategies for recruiting in a tight labor market.
  • Increase salaries: Evaluate salaries and increase them.
  • Search more widely: Search for candidates in non-traditional places and consider relaxing some of the job requirements. 
  • Invest in employee training: Consider training existing employees for open positions. Also, consider training candidates for open positions.
  • Invest in Technology: Consider investing in technology to boost the productivity of the employees you have.
  • Conduct Stay Interviews: Consider interviewing existing staff to find out what’s working and areas of opportunity. 
The strategies that employers must take in today’s tight labor market might just come in handy in a future with fewer workers.