EMPLOYEE MANAGEMENT
Stop Calling It A Labor Shortage !
It Is A Turnover Crisis .
BY JOHN DIJULIUS
THE STATISTICS ARE ALARMING
A record-setting 10.1 million jobs opened in the United States last year . About 11.5 million workers quit just in the second quarter of 2021 . Forty-one percent of the global workforce would consider leaving their current employer within the next year . Fifty-four percent of Gen Z are considering quitting .
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 happening today across industries is a different phenomenon that requires a different approach . The Great Resignation caught so many business leaders flat-footed .
WHAT IS FUELING THE GREAT RESIGNATION ?
There are numerous reasons , most originating from the pandemic that started in early 2020 . According to a LinkedIn survey , 74 % of respondents said the time spent at home 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 had treated them over the last 18 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 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 . 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 , and businesses need to stop thinking Ping Pong tables and Friday happy hours and create a strong company culture instead .
A PROFESSIONAL AWAKENING
For so many , the pandemic has had the same effect on people as those who survive near-death experiences . It has caused employees to reevaluate their professional careers , not only what they want but also what they aren ’ t willing to tolerate anymore . This professional awakening has caught a lot of leaders and companies flat-footed . However , too many leaders are using the Great Resignation as a crutch . A significant percentage of people who have quit over the last 15 months did so as a result of poor company culture , where leaders are solely focused on productivity and bottom-line profits .
I have seen firsthand that the companies with the strongest company culture , long before the pandemic , are significantly less affected by the so-called labor shortage . And the organizations that churned and burned their team members or only paid lip service to support a “ great ” workplace culture are the ones hit the hardest by the employee turnover .
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