The ‘Great Resignation’ Versus the ‘Great Retention’

Three percent of workers in the US resigned in August, according to figures from the Labor Department. In absolute numbers, this represents about 4 million people in an economy that currently has 10 million open jobs. It is clearly not a phenomenon exclusive to the US and could have serious implications for organizations in Mexico.

But what is the Great Resignation? It is understood as a massive wave of voluntary resignations that can be linked to different causes:

1. Resignations accumulated from previous months that were not carried out, perhaps because of pausing and seeing what would happen with COVID-19 and that today are being exercised. It’s a kind of pay-per-view, as they say in poker.

2. Exhaustion of workers motivated by many reasons, including type of work, the sector in which they work, high levels of tension and demand, not very empathetic and narrow-minded leaders. It is perceived that the health, education and technology sectors, mainly, may be the most affected.

3. Radical lifestyle change. The pandemic has taken things away from us but at the same time it has given us others. This includes time for reflection about what I want but, above all, what I don't want in my life. Career changes, voluntary retirements, etc.

4. Desire to maintain labor flexibility. The benefits of the home office, self-management and physical and nutritional well-being are among the elements that have been savored.

Forty percent of workers worldwide have considered quitting and changing jobs. Ian Cook, who is an authority on issues of digital transformation and people analytics, recommends addressing the issue in three basic steps.

Quantify the Problem

Using available information, he developed a study from 9 million employees in 4,000 global organizations, and got the following results.

The resignation trend is growing by 20 percent more than usual among employees who are in the middle of their working career; that is, between 39 and 45 years of age.

In the case of employees between 20 to 25 years old and 60 to 70 years old, the resignation trend has remained the same or decreased. It sounds almost obvious in the 60- to 70-age group. But what is happening among the centennials? Their interest in learning and accumulating work experience is perceived as an incentive to stay where they are.

Identify the Root Cause

This implies work that goes beyond the function of the human resources department itself. It is about changing or reinforcing leadership habits at all levels of the organization, encouraging the genuine closeness of the leader to his team through frequent and sincere check-ins, where there is an understanding of the interests and needs and concerns of the company’s associates.

This would allow us to take the pulse outside of what formal engagement surveys provide us and, of course, to take action and not generate false expectations of things that we know will not happen.

On the other hand, it also means reinforcing content engagement surveys. In other words, include a section related to emotions and aspirations, but do it more frequently.

It is about having periodic surveys with few questions rather than having to wait 12 months to receive a questionnaire with 70 questions.

Show appreciation

Setting clear, consensual and achievable goals is key. But also, the celebration or recognition of the achievements of others is highly appreciated by individuals and the team. There are actions you can take to this end that do not cost anything and are profound.

We must also remember the appropriate use of basic human capital: the right person in the right position, career and growth plan at the right pay scheme. These are the basic health issues of the strategy and execution of the human resources model.

Retention Programs

This is the ultimate test of our Employee Experience model. The employer brand that we want to have with candidates, employees and alumni. Let's reflect on it and if it is necessary to redesign it, let's do it for the good of the organization and to achieve the expected results.

Let's rethink our human capital assets and make sure they are clearly reflected in our journey maps. If you don't have a journey map, build one. Let's challenge the “People” segments that identify our professionals.

The Great Resignation is not just a problem for strong economies. Regardless of the more than 10 million unemployed and underemployed that Mexico reports, we have a problem of possible loss of key talent. It's our chance to turn the Great Resignation into the Great Retention. Let’s not miss this opportunity.