Tough. One word to describe the past two years for employers or anyone who owns a business. The pandemic has left the United States in the worst recession it’s ever seen, and two years later, people are still struggling to adjust to the new normal. This uncertainty and struggle have caused employees to quit their jobs in search of better opportunities, a more flexible work environment, physical relocations, or the urge to stay at home.
The US Bureau of Labor Statistics annual report for 2020 shows an average turnover rate of 57.3%. In 2019 that number was 45.1% and in 2018 it was 44.5%. Looking at industry-specific, the food/beverage and hospitality industries took the hardest hit, with a turnover rate of 130% in 2020.
Why such high turnover rates? The pandemic situation exposed the flaws of organizations that were business-centered rather than human-centered. Organizations that weren’t able to flex and accommodate employees saw much higher turnover rates than those that did. Employees who worked for organizations where morale was low, work conditions were less than desirable, and a culture of harassment was present, all of a sudden had an opportunity to make a change, and they did!
Also, burnout, stress, lack of support or flexibility, and a lack of empathy from current employers have led unsatisfied employees to seek greener pastures elsewhere.
So, how can you handle this impact from a leadership perspective?
- Focus your work centers and team on becoming human-centered rather than business-centered. Focus on leading from a place of empathy rather than expectation. Make sure your work environment is one of encouragement and flexibility focused on employee growth and development.
- Get clear about what your purpose is and enroll team members in that purpose. When the cause is understood and comes from a place of transparency and honesty, it is much more likely to be supported.
- Have open and fluid communication lines through the transition period of an employee leaving the workplace. Seek to understand where you can improve and implement changes quickly.
Treat this “Great Resignation” as an opportunity to make positive changes within your organization, to keep your current employees motivated and engaged, and attract new people who will support this fundamental shift in the approach to business.
If you are struggling to make a change in your organization or still trying to recover from The Great Resignation, we would love to support you. At Akramoff our goal is to re-invent workplaces to foster wellbeing, health, and human maximization. Everyone deserves a great workplace and as a leader, that starts with you. Email email@example.com to get started today!