The Great Resignation is a mass, voluntary exodus from the workforce. It is here, and it is quite real. Turnover is nothing new, and neither are corporate retention strategies. But the Great Resignation and extreme turnover that is happening today across industries is a different phenomenon that requires a different approach. The Great Resignation caught so many business leaders flat-footed.
Just in the second quarter of ’21 (April, May & June), a total of 11.5 million workers quit their jobs, according to the U.S. Department of Labor. If that isn’t bad enough, a survey of over 30,000 workers conducted by Microsoft found that 41% are considering quitting; that number jumps to 54% for Gen Z.
These stats scare the hell out of leaders from every organization. The cost of any turnover is expensive. Not only the hard cost in the time spent recruiting, screening, and retraining new employees, but in employee morale, lack of consistency in customer service, compromised hiring, existing employees questioning their decision to stay, and high performers frustration working with average and below-average co-workers.
What is fueling the Great Resignation?
There are numerous reasons, most originating from the pandemic that started in early ’20. According to a LinkedIn survey, 74% of respondents said the time spent at home had caused them to rethink their current work situation. More than 50% cited stress and burnout in their job as a reason for looking elsewhere. Others did not like how their employer treated them over the last eighteen months, from a lack of genuine concern to employees being forced to take concessions, while senior executives didn’t. The Work from Home (WFH) dilemma opened a pandora’s box for many employees and has become a contentious issue for many organizations. And finally, yes, the increase in unemployment benefits has caused a lack of urgency for many to return to the workforce.
A crisis is a horrible thing to waste
We saw a booming economy during the last decade, which always results in two things; most businesses start losing focus on the customer and employee experience. Businesses need to stop thinking ping pong tables and Friday happy hours to create a strong company culture.
Businesses need to worry less about hiring to replace the employees they lost and focus on keeping their top talent by reinventing their internal culture. Yes, I said it, worry less about hiring just anyone with a pulse and work on keeping your top performers. First, businesses need to measure employee engagement regularly (i.e., quarterly). One of the best out there is Gallup’s Q12 Employee Engagement Survey. These 12 questions cover the key areas that really impact employee morale and engagement.
The businesses with the highest engaged employees enjoy:
• 81% less absenteeism
• 33% less turnover
• 10% increase in customer loyalty/engagement
• 23% more profitability
“Stop trying to find great employees, focus on becoming the business great employees find.”
Stop policing and start leading
Businesses need to stop treating their employees like children. Leadership needs to be about helping people reach their potential in performance not managing them from breaking policy or screwing up. High performers need innovation; innovators need autonomy. Don’t let one poor employee ruin your organization’s freedom and flexibility. Employee freedom means they can take a lot of risks and fail. Risk-taking breeds innovation.
*Related – Learn the best practices to build a World-Class Internal Culture at the 2021 Customer Service Revolution (In person and virtual tickets available)
Women Leaving the Workforce at an Alarming Rate
An article in Time magazine talks about a disturbing trend that occurred during the height of the pandemic: 885,000 women left the workforce, while only 216,000 men exited during that same period. In addition, one in four women is cutting back on hours or changing roles to ones that are less demanding. Fewer women in the workforce increase gender pay gaps and the lack of diversity in senior executive roles. This is a great opportunity for the women who have remained in the workforce.
Senior Customer Experience Consultant for The DiJulius Group, Dave Murray, talks with Scott McKain, author and member of the Speakers Hall of Fame and the Sales and Marketing Hall of Fame, about creating the ultimate guest experience. Listen to Podcast 52.
* Register to become a Customer Experience coach. The last CX Coach Camp of 2021 is coming up.
Thinking About Starting a Podcast?
If you have ever thought about the benefits to starting a podcast, check out this blog written by Danny Ozment, How Podcasts Improve Customer Service and Customer Experience.
Danny produces The Customer Service Revolution podcast.
Less than 5 Weeks Left Until the Customer Service Revolution
The 2021 Customer Service Revolution conference, October 5th & 6th in Cleveland, is a passionate community of leaders from all over the world, set out to disrupt their industries and become the brand customers and employees cannot live without. Whether you are B2B or B2C, you are all really H2H, Human to Human.
Learn how to:
- Deal with the Great Resignation era
- Build a fantastic employee culture that retains your top talent and makes your business the brand others want to work for
- Recruit only “A” players and not compromise
- Adjust your customer experience in a post covid economy
- Manage customer expectations
- Keep your customers happy even when you have staff shortages and supply chain issues
- Network with the top CX Visionaries around the world
We are offering both in person and virtual options for the two-day 2021 Customer Service Revolution, October 5th & 6th in Cleveland. We have selected the most amazing lineup of experts to help you create an experience that will be your company’s single biggest competitive advantage.
Register today and secure your spot before seats sell out. Don’t feel comfortable traveling? Check out our virtual ticket option to enjoy the show from wherever you are!