The Great Resignation - Part 1 (What Is It?)

Are you seeing what many of our clients are seeing -- a mass exodus within their organizations. People are swiftly leaving their jobs and moving to other companies. But why? In this 3-part series, we will be exploring this new movement. Part 1: What is it and why are people leaving | Part 2: You, as the Employee, what to consider | Part 3: You, as the Leader, how to retain talent

Transcript

Hey,

This is Lou with IONIS Whole Person Leadership Development and Coaching.

And thank you for joining me for this episode of the Leader Manager podcast.

This is a special three-part series on the Great Resignation.

This is a new movement that is spreading through the workforce.

In this first part,

We will explain the concept of the Great Resignation and the stats back in it.

In part two,

We're going to dive in to the employee side,

What it's like right now from the employee's perspective and what exactly is going on.

And spoiler alert,

It's not just you and only you within your own company that's experiencing this.

It's across many companies right now.

And in part three,

We're going to outline the opportunities for the leaders within the companies,

Those that see their talent leaving and what they can do to retain talent.

Okay,

Let's get started.

The Great Resignation.

What is it?

Anthony Klotz,

He's a professor at the Texas A&M University.

He coined the term the Great Resignation.

He says,

Quote,

When there's uncertainty,

People tend to stay put.

So there are pent up resignations that didn't happen over the past year,

End quote.

So people have been sitting tight and stewing,

Previously too afraid to make a move.

And as we begin to move back to something close to regular life,

People are beginning to take action.

In 2020,

If you were fortunate to not have been furloughed or laid off,

You kept your job regardless of whether you liked it or not.

For many people,

Things were too uncertain to just get up and leave.

For those who did take a new job in 2020,

You likely endured ineffective onboarding and a lack of connectedness to your new team and new employer.

Many of our clients we coach have been sharing how volatile the organizations are right now.

They are reporting how unhappy their teammates are,

How so many people are leaving around them,

People's motivation is lacking,

Leadership is missing.

People are feeling alone,

Like it's specific to only their company.

But let me tell you,

I'm hearing the same story from so many different people,

From startups to large global organizations.

People are either leaving their current jobs for another one in the same company,

Or people are just jumping ship and moving to completely new companies.

There's what seems like a mass exodus.

Those who are noticing this are looking around and wondering if they too should jump ship.

Looking from the inside out,

They're feeling there's something not okay with the company they're working for.

But the issue is bigger than just one company.

This is happening across many companies.

If you think about it,

One reason other companies are hiring is because their talent left and they're backfilling those positions.

Seeing this trend over the last few months,

I jumped into pulling some stats.

And this is what I discovered.

It's pretty staggering.

The Bureau of Labor Statistics recorded 4 million quits in April 2021.

4 million quits in one month.

Quits.

Not layoffs,

Not fired,

Not retired,

Quit.

That's 2.

7% of the workforce.

And it's the highest recorded since the Bureau started collecting data.

And then I also found Louis Andre.

He's an author from Finances Online.

And he captured 112 employee turnover statistics for 2021.

And called out the causes,

Cost,

And prevention of that related turnover.

And get this.

64% of employees are thinking of quitting their jobs.

64% thinking about quitting.

51% of workers are actively looking for job opportunities at any given moment.

51%,

More than half of a company's employee base are actively looking.

And of that,

33% say they're actively looking for a new employer.

So the difference between the two metrics here.

So 50% of the workforce of employees are looking for another opportunity.

So that could be inside the company,

Outside the company.

So those that are looking to jump ship.

31% looking for a new employer.

Over half of the employees,

52%,

Say they're willing to leave the job if another employer offered them quote unquote the right benefits.

People are willing to just up and leave if they see something shinier on the other side.

Each resignation can cost the company up to a third of the worker's annual salary.

A third of their salary.

And the majority of those costs come from soft costs.

Like reduced productivity.

And just a third of those costs come from recruiting,

Hiring,

Temp workers and so on.

The majority of the costs that an employer incurs is going to be because others are having to take on extra workload,

Reduction in motivation by the remaining employees,

More stress,

More burnout.

So what is creating this willingness,

This drive to leave?

We surveyed and interviewed our clients and this is what we found.

Our clients are saying that there is a feeling of being less attached to the company.

COVID and remote life has created a situation where people do not feel connected or as connected to their employer.

They also have less patience to wait around to see if things improve.

When they see their teammates leave,

They feel their teammates know something that they don't.

Our clients are saying that they see people leave and they're interpreting this as an indicator that the company is no good.

That they're somehow tainted in some way.

Some of our clients don't want to give up their COVID work style.

They're enjoying less distractions.

They're enjoying that they don't have drive-bys.

They're enjoying that when a Zoom call ends,

That it's quiet.

They enjoy that they can go run over and put a load of laundry in.

They enjoy being able to take a break and watch some TV.

They enjoy not having to commute.

Our coaching clients are seeking coaching on what it is they really enjoy doing.

They're looking around and seeing they're not happy doing what they are doing today.

They're realizing that they want to be happy.

If this means leaving their current job,

Then so be it.

The work that we do with our clients is focused around identifying their true passion and doing things that create energy,

Not drain it out of them.

For those who don't have coaches,

What often happens is they become frustrated and they swiftly pick up everything and leave with the prospects that the grass is greener on the other side and that they'll be happier at this other place while not really identifying what it is that will truly make them happy.

Hence the power of coaching.

In part two of our great Resignation podcast,

We will dive into Nicole and Jason's stories.

Two of our clients and little asterisks,

Their names have been changed to protect their privacy.

Nicole,

A senior software product manager and Jason,

A senior director in a large global SaaS company.

They both are finding themselves in the throes of the great Resignation and both are leveraging coaching to create success and happiness for themselves.

In these podcasts,

We will help you see the difference between making a quick decision on your career versus a thoughtful one.

Looking ahead into part three,

Given the current mindset of employees,

What can the employer do?

What can your manager do?

What can your leader do?

What can you do if you're the one who manages people?

It's really quite simple.

Focus on being a leader,

Not a manager.

What's the difference?

A manager manages widgets,

Performance,

Process,

Procedure,

Dates,

Gates,

Schedules,

Planning.

Managers ensure employees are in seat when they're supposed to be.

They enforce HR policy,

OKRs and metrics.

A leader?

They connect with the human doing the work,

The human that generates the widgets that the manager is managing,

The human who is also an emotional being,

A human who thrives when they feel supported.

When the person that manages them takes an interest in them,

Seeks to develop them,

Provides them opportunities that resonate with that employee.

The leader removes roadblocks,

Coaches,

Empowers,

Motivates.

The leader creates a community and a strong sense of belonging for the people they lead.

It's simple.

A happy human will seek to contribute more,

Understand things at a deeper level,

Become more focused on delivering as well as seek to support those around them.

So stay tuned for part two,

The great resignation and you as the employee,

What to consider.

I'm excited to see you there.

Thank you.

Thank you for listening.

Watch out to us.

Let us know how we can help you.

We're here to create leaders in your organization and within you.

Send us a note at coach at IONISWPC.

Com.

That's coach at IONISWPC.

Com.

Also check out our website,

IONISWPC.

Com.

Reviews

Very insightful, thank you

Wow! Great talk. Thank you.