Nurturing new talent in the ‘Great Resignation’
As record numbers of people move jobs and businesses face a fight to keep their best employees, what steps can employers take to attract, retain and develop talent?
The easing of pandemic restrictions has led to an unprecedented wave of employees moving jobs as they re-evaluate their lives post-Covid-19. Dubbed the 'Great Resignation’, economies across the globe have seen high attrition and record numbers of open positions.
In the US, more than 15 million workers have quit their jobs since April 2021 according to a report by McKinsey & Company. The UK is seeing the same trend, with 1.1 million job vacancies recorded between July and September according to the Office for National Statistics – the highest figure since records began in 2001. In fact, 41% of the entire global workforce is planning on changing jobs in the next year, reports a Microsoft survey.
So what is going on? It’s clear that a once in a lifetime event like Covid-19 is affecting how we view work and working lives, with such a drastic change to our traditional patterns leading to a seismic shift in our perception of work. Employees who held off changing roles for fear of job security during the pandemic now feel a little bolder in moving.
Making employees feel valued
For employers, the new war for talent is one centred on retention. As remote working hit and we became accustomed to seeing our colleagues’ living rooms, kitchens and family, employees became more attuned to the human elements of work. A 2021 survey of HR professionals by the CIPD found that 75% believe senior leaders now have employee wellbeing on their agenda, compared with 61% in 2020. Fail to make your workforce feel valued, and you risk losing them not only to the business down the road – but to any organisation globally that offers remote working.
A second impact of remote working has been the breaking of team bonds and social activity. As author and management guru Dave Ulrich put it on LinkedIn: “With more personal time to ponder and fewer work-related social connections, employees feel less attached to their teams and organisations and more willing to explore job and career options.”
So how can employers instil confidence and company values in new and existing talent when the employment landscape is so uncertain?
For Ulrich, one step is to reinvent the work setting. Employees who work remotely shouldn’t be forced to return to the office simply to do the same work. Instead, the office should become a place for creativity and collaboration, where culture can grow. “Employees come together to work together, not isolate,” says Ulrich.
Ruth Penfold is a leadership coach and experienced HR professional, whose most recent role was as people practice lead at Launchpad, BP’s scale-up factory. She believes that building an authentic culture is key to engaging new and existing talent – but that doing so requires leaders to think clearly about how their people view their business.
“If you think about the human experience of your business through a hierarchy of needs funnel, people processes have to sit at the base of that – are you meeting the basic needs of what a person needs to survive and thrive? Is the employee clear about the goals of the business and where their job aligns with that?
“Next comes the culture piece. Do employees feel able to be themselves in your organisation? Are their values reflected in the values of the organisation? If people don’t feel those things, then they are in survival mode and won’t thrive,” she argues.
Engaging people is also about leaders embodying the culture they want to create – and making the right first impression.
“You can run a million wellbeing initiatives, but if the leadership team doesn’t support people to have boundaries and create an environment where people feel safe, then none of the other stuff will provide much value,” says Penfold.
Also – it’s essential to have an agile mindset in how you build your onboarding processes. Onboarding someone in the right way is a really big deal if you want people to stick around and do their best work – trust me, it’s worth the investment,” she adds.
The current talent marketplace is one that firmly favours the employee. The organisations that are succeeding in retaining and hiring talent are those that are articulating their brand values and demonstrating great working culture. They are also the ones – according to leadership speaker and Cass Business School professor Chris Roebuck – demonstrating strong leadership.
Trust in leadership
“The world of work is going through dynamic change, but there are things that an organisation should keep long-term, like vision, values, purpose and what is expected day-to-day. Above all, it’s about being put into an environment where a new joiner can – and wants to – be their best. That’s down to having a leader who creates an environment where that can happen,” Roebuck says.
The C-suite needs to remember that employees are observing every action they take and making judgements on whether they think the people leading the organisation care about them.
The pandemic has actually grown trust in businesses to do the right thing, with businesses being more trusted than governments, NGOs or media, according to the 2021 Edelman Trust Barometer. However, trust in business leaders has fallen, with CEO credibility at an all-time low in France, Japan, India and Brazil, among other countries. This disconnect is one reason why so many people are moving jobs.
“The C-suite needs to remember that employees are observing every action they take and making judgements on whether they think the people leading the organisation care about them. This immediately feeds into levels of engagement, effort and retention,” says Roebuck.
Like Penfold, Roebuck believes the key is to focus on the human side of work, allowing individuals to develop new skills and confidence.
“There are simple steps to developing talent in any world, no matter how uncertain. It’s about enabling them to develop both technical and interpersonal skills at a speed which keeps them engaged and challenged. It’s about providing support and constructive feedback, and helping them to understand their role in the wider organisation. This is possible in any environment, but it requires thought and good leadership,” he says.