How you can stop the Great Resignation in your company now

A few weeks ago, I had conversations with people from two different continents, and both proudly said that they are part of the Great Resignation! Yes, they resigned even before finding a new job, and they have no regrets. They blamed the organisational culture and leadership styles for their decision to leave. They were confident that they would easily find the right position in the current market and won’t need to make compromises.

The pandemic and other global changes created new challenges for leadership. The way we used to lead, the assumptions we had based on, and the powers we had have dramatically shifted. And the Great Resignation is the proof in the pudding. So, what can we learn from it, and what can leaders do now?

Learning 1: Operating in Constant Uncontrollable Environmental Changes

Over the last couple of years, organisations have been operating in an environment they have limited control on:

• The external environment is in chaos- Pre COVID, we used to work in a relatively predictable environment. Business schools taught managers to scan their external environment to look for changes during their strategic process. Many models were used in the market (for example, the PESTLE). However, in today’s situations, all the organisation’s environments are in constant uncertainty and changes: the geopolitical, health, economic, social, technological, environmental, legal environments are constantly changing. This global environment influences ecosystems.

• Ecosystems in crisis- The ecosystems organisations are operating in are also in a constant change: (1) Interruptions to the supply chains and employment structures (working from home as offices are no longer perceived safe), (2) a significant increase in new technology open vacancies within a disrupted and in some cases a shrinking talent pool (due to lack of international mobility), and (3) a shift of power from employer to employees in thetechnology sector. The underlying conditions for retaining talent have changed, and leaders must now amend their leadership styles.

Learning 2: Culture and Leadership Have Never Been So Crucial

We used to say that people don’t leave organisations; they leave their managers. Recent research highlights that the main reason people resign is organisational culture. One can assume that working from home and the stress of leading in such uncertain times have amplified the management and cultural issues organisations face. And indeed, this is what we see on the floor: sub-cultures evolve (some are toxic and unsafe), managers are now required to lead not only by building high performing virtual teams but also by supporting team members that are struggling to perform due to pandemic related challenges. Managers need to make decisions using their EQ. Not all of them used to lead using empathy. I think it’s safe to say that the traditional leadership style that lacked EQ is no longer working!

And then we shouldn’t forget that managers are human beings, and some are struggling themselves – not only with their role as leaders but also personally. So, leaving culture and managers to evolve on their own is a recipe for failure! Now is the time for organisations to:

1. 1)  Conduct an external organisational culture diagnosis
2. 2)  Review and implement a cultural change plan
3. 3)  Upskill managers and provide them with team, culture and leadership tools and support

Learning 3: Individuals Are Trying to Regain Control Over Their Lives

The last two years have been chaotic for all of us. Even worse, whenever we felt that things were getting back to normal, a new variant of the virus emerged, and here we were back again in the lockdowns, uncertainty, fears- not seeing our families, not living the life we used to and long for… How is this related to the Great Resignation?

• Taking control over our lives back- The pandemic caused many people to try and get control over their lives back, to make small changes that will give them a feeling of progress. Some renovate their houses, move home or buy new furniture and gadgets. Others are back to studying a course they always wanted to do, and now they feel it’s time to invest in themselves. And some decide that a new career or employer is what they need.
• Resignations are contagious- Biases influence our personal choices. One of the common biases is The Herd Bias, a natural bias to follow what others do. One example of this bias is (pre-COVID) when we went out and saw a busier restaurant near an empty one, we selected the busier, thinking that if many people prefer this restaurant, it must be good. The same happens with resignations- if people from our company moved to a new employer and are happy (not to mention that they told us they have significantly improved their salary), why wouldn’t I try it as well?

Hence, organisations that want to retain their talent should:

1. 1)  Conduct a talent risk analysis
2. 2)  Formulate a new talent strategy

So, while the power has certainly shifted to the employees in the current environment, employers should not sit and wait until they are affected by the Great Resignation. Now is the time to act, and it’s all about your culture, leadership and talent management.