The Great Resignation Is Here. Is Your Company Ready?

The Great War. The Great Depression. The Great Recession. All are significant periods in a time marked by upheaval that profoundly affected lives around the globe.

Today we’re in the midst of what is being called The Great Resignation: the widespread, global trend of workers leaving their jobs at a scale and pace never seen before. 

The term “The Great Recession” or “The Big Quit” was believed to be coined in 2019 by Anthony Klotz, a business professor at Texas A&M University, well before the arrival of COVID-19. Klotz predicted a mass exodus of workers from their jobs based on the strong 2018-19 economy. In good times, jobs are plentiful and salaries rise so workers are open to looking for something better on the horizon.

Then COVID-19 hit the U.S. in March 2020, putting our businesses and workforces into a tailspin. Some have fared better than others, but the pandemic has made many employees rethink their current roles, leaving employers scrambling to fill vacant positions.

What’s the impact?

According to the U.S. Department of Labor, during April, May and June 2021, a total of 11.5 million workers quit their jobs. In July, another 4 million Americans resigned with a record-breaking 10.9 million open jobs at the end of that month. Based on Microsoft's 2021 Work Trend Index, more than 40 percent of the global workforce is likely to consider leaving their jobs within the next year.

What’s the cause?  

“Turnover shock” is when a person re-evaluates their job situation after a substantial life event. Some events are good, like the birth of a child or earning a graduate degree. Others, like a global pandemic, flip life upside down and make us reflect on everything, including our careers.

A recent article from Fast Company on The Future of Work called it “The Great Reprioritization” because pandemic lockdown forced people to stay home, be with their families and take time to rethink and reprioritize. Some people have become overloaded and stressed out from working remotely and putting in overtime. Others determined that the benefits of a two-income household just don’t outweigh the loss of time with family.

Whatever the cause, workers are re-evaluating their jobs and many are deciding to leave their positions. 

Here’s what’s important

If we take compensation and benefits out of the equation for a moment, many of the issues companies are facing in losing employees are due to an undefined, inadequate and/or misused internal communications channel.

While the reason(s) employees leave may vary, the following are current company culture issues that can affect employee satisfaction in today’s marketplace: 

• Employees want to work for an employer that truly cares about their well-being. They expect an environment where they feel safe, valued and empowered to have work-life balance and schedule flexibility.

• A culture of transparency, mutual trust and open communication is important.

• Employees need to be recognized and rewarded for their contributions and accomplishments.

• The pandemic and remote working have made internal communications much more difficult, yet it's become more important than ever.

• Employees want to work for a company they are proud of and that does good for the community. They want the values of the company to mesh with their values.

How can strategic communications help?

A lot of companies spend the majority of their resources communicating externally with customers, suppliers and partners. An important missing piece is an intentional, strategic communications program to internal stakeholders. 

Here are five communications strategies that can help to create well-planned and transparent internal communications to engage and retain employees:

1. Determine the issues. Consistent and open communication with employees is crucial to know what’s important, what’s working and what can be improved. If you don’t do this already, a good place to begin is to survey employees regularly. Some companies survey employees once a year. During this time of upheaval, more frequent communication is better. Survey topics can tap into safety concerns during COVID; opinions about remote working and schedules; ways to improve communication; or establish employee satisfaction levels and set a benchmark for a Net Promoter score.

   Once you survey employees, however, the worst thing you can do is nothing. If you ask for feedback, you must be prepared to take action on it.

2. Define your company values. Employees want to work for a company that’s values match their own. Many companies have values that are undefined, outdated or no longer representative of their organization. It may be time to take a fresh look.

   A strong value system is part of a brand platform that can help your company be relatable to both customers and employees alike. And, a company’s values should always be a litmus test during employee recruitment. 

3. Be intentional. Many organizations have marketing and communications plans that are strategic and well-executed, but miss one large target audience: internal stakeholders. Along with external communications work, creating an internal communications plan specifically for employees can prioritize this communication and elevate its importance. Intentionally reaching out to your most valuable asset as a company, your employees.

4. Recognize and respect. Some workers are leaving jobs because they feel a lack of growth in their current positions and want to be challenged to learn something new. Just as an internal communications program can be formalized, so can employee recognition and professional development programs. Both work best when the programs are well-defined and consistent. 

5. Work for the greater good. More and more workers are looking for meaning in their jobs. They want to work for companies that are helping out in their communities, supporting causes in line with company values and prioritizing social responsibility. Organizations need to evaluate their role and consider a Corporate Social Responsibility policy to help contribute a positive impact on society and the environment.  

The COVID-19 pandemic has fueled the desire for more meaning and transparent communication in the workplace. Now more than ever, companies need to define clear communications with their internal stakeholders and listen to what their employees are saying about workplace culture.

If you are thinking about formalizing your internal communications, don’t hesitate to reach out to the Kane team to help tailor your communications plan to the needs of your employees.