The Great Resignation, also known as the Great Transition, refers to the phenomenon of some 33 million Americans quitting their jobs beginning in summer of 2021. As a leader, entrepreneur, or business owner, you’ve no doubt been aware of the perceived labor shortage. On the other hand, work still seems hard to come by!
The reasons for the Great Resignation may vary, but perhaps, as NPR puts it, we should call it the Great “Renegotiation.” At the heart of the issue lies problems of poor work-life balance, meager compensation, and increasing employee and talent demand that provides more workers with leverage and negotiating power.
But what’s the lesson in all of this for leaders? If you own a business or have a management role, you know just how critical wise leadership is. And that means learning from the trends and motivations shaping the working class at every level.
Leadership Lessons Learned Through the Great Resignation
Lesson #1 – Prioritize a sustainable, healthy workplace culture.
Short of poor compensation and absolute necessity, nothing will kill your team faster than a toxic workplace culture. You’re not just competing for sales anymore – you’re competing to secure and retain talent. One of the things that’s going to stop your team from jumping ship and joining your competitors is creating a culture that they don’t want to leave.
This means:
· Providing a clear, aspirational vision
· Maintaining open communication and consistent expectations
· Practicing compassion
· Listening to concerns, complaints, and criticism with a “do better” mindset
· Setting meaningful goals and metrics
Your team shouldn’t feel as though they’re walking on eggshells. You want to craft an environment that is professional but comfortable. Your team should feel empowered to do the work they’ve been given to the best of their ability, knowing that their effort will be seen, appreciated, and utilized appropriately and they will be treated respectfully and fairly in and out of the office.
You must craft a culture that keeps customers and employees alike coming back – a culture that values people, integrity, and transparency.
Lesson #2 – Care about team well-being.
Fair compensation isn’t enough to inspire your team to greatness. Burnout is very real, particularly in our workaholic American culture. As a leader, you’ve got to care about your team. Go beyond what they can do for you. Go beyond their job description! You can demonstrate care by:
· Providing growth opportunities (seminars, retreats, training, etc.)
· Charting clear paths to climb the ladder based on professional performance and qualifications
· Encouraging employees to use their vacation time in full and making it easy to do so
· Have open conversations to destigmatize mental health issues, burnout, and other issues that can hinder workplace performance
· Focus on providing avenues to refresh, reinvigorate, and maintain the mental and physical well-being of your team
· Investing in the growth potential of your team
You can provide a job with purpose and vision, but if it isn’t paired with genuine care for your employees as people with hopes, dreams, problems, and struggles, then it won’t really matter. If the job is still soul-sucking, people won’t stay for long.
Lesson #3 – Value and secure top talent.
While most of us are aware of the labor shortage most clearly in the waits at the drive-thru and in the checkout lane, it isn’t just low-wage workers who are fed up and looking for greener pastures. Top talent is holding the cards. Businesses want and need them – and they can have their pick of the best offer.
What are you doing as a leader to secure that talent for your business? The key lies in:
· Fair compensation
· Meaningful work with a clear impact
· Opportunities to excel, achieve, and grow
· Full utilization of talent’s skills and knowledge
· Healthy work-life balance
· Encouraging innovation
The best offer on the table isn’t just the number on a salary package. And don’t get me wrong, that’s important, too – fair compensation, especially in our rapidly inflating economy, is essential! Retaining top talent, though, means offering more. It means creating an environment that people want to be in – one that they find enjoyable, fulfilling, and challenging.
As leaders, it’s our job to set the stage for the culture we want to see. We create the standard. So when your talent could have their pick of jobs, ensure that you’re the one they pick – because others pale in comparison in every way.
What incentivizes you to choose & stick with a job? Share in the comments.