I just read the McKinsey article about huge turnover in the labor market, referred to as the “Great Attrition.” Companies are facing a conundrum across industries. The researchers at McKinsey layout a simple challenge to businesses: be part of the continued disenfranchisement of employees or become known as a “Great Attractor”, an organization that is successfully recruiting top talent over the next 12 months.
The past 18 months of COVID Pandemic panic was tough on a lot of businesses (including mine) but thankfully since January 2021 businesses in several industries came booming back. This is great news for me as a recruiter and for the talented candidates that I place with client companies.
The McKinsey challenge to organizations forces employers to confront the disconnect between their mindset (transactional) and the mindset of employees (relational). For HR professionals, career coaches, and recruiters, this is not exactly breaking news – but the impacts of worker discontentment are glaring post-pandemic. I’ve been watching a rise in burnout and a shift among employees to being more introspective about what really matters. It prompted me to ask a follow-on question:
What type of story will you tell to your employees and the talent you hire in 2021-22?
LISTEN, LEARN, AND UNDERSTAND
The first step in “romancing a candidate” is a mindset. I coach my clients to highlight the company’s strengths that matter to candidates (e.g. focus on the relational!)
The current job market favors the candidates and for companies to attract talent, the costs are high. As a recruiter, for example, the talented people that I identify are sometimes not active job searchers. This means they were not considering a change until presented with an opportunity. Attracting these candidates requires companies to think more about what makes their organizations wonderful places for people to work.
The McKinsey authors suggest that companies will continue to lose workers and struggle to attract new talent in the “Great Attrition” until they shift toward a relational mindset; and get focused on understanding the motivations and needs of their people. As companies seek to stabilize following the pandemic, workers are reassessing their lives and thinking even more about the mission/ethics of a company, or about the location and the willingness of their employers to be flexible.
Businesses that want to become “great attractors” would be wise to understand what values are important for people who can make their companies succeed.
WHAT MATTERS MOST
Some companies measure success by shareholder earnings. Others measure it through innovation, low staff turnover, and career satisfaction. Lowering costs and boosting higher profits is a business priority agreed upon across industries by all. Determining how to get there, however, differs by company, the attitudes of leaders, and the subsequent culture that emerges.
Universities and college administrators have begun to realize that by not accounting for job market needs in curriculum planning, they fail to prepare students with employable skills. Businesses can take a similar approach and prepare workers for greater success with professional development opportunities that not only advance their careers internally/externally but provide a better-trained workforce for the organization.
Educational and business leaders can take the same page from the proverbial book to train individuals and prepare them with in-demand skills that fit market needs.
Information is powerful and knowing what forces motivate workers is key to becoming a successful “attractor.”
3 REASONS WHY EMPLOYEES MOVE ON
Based on the article and other studies in work/labor research that pre-date the pandemic, these factors have been identified as the missing components from corporate cultures. Simply put…
“The top three factors employees cited as reasons for quitting were that they didn’t feel valued by their organizations (54 percent) or their managers (52 percent) or because they didn’t feel a sense of belonging at work (51 percent).” (McKinsey, 2021)
The impact of the COVID pandemic was especially hard for working families with young children. The need for flexibility, already a growing priority, became critical for parents as they shifted to home offices and homeschooling, simultaneously. A gaggle of 20+ kids ran around my neighborhood for months, as parents were challenged trying to turn picnic tables into school desks. Now as they resume commutes into the office, many are considering the opportunity cost in a relational way.
Employers must listen to hear what employees value and remain supportive as needs evolve. Employees who feel valued stay longer. Retention not only saves money over time by reducing HR costs but protects institutional knowledge. As a long-time recruiter, these were facts I often shared with hiring managers when they were resistant to investing in the right hires and the importance of a culture shift to focus on the relational needs of employees.
Company leadership has the power to create a culture that is responsive to employees and good for business.
Consultants can provide an evaluation and give feedback to companies about specific strengths and weaknesses. Coaches for executive teams are also great resources for helping to kickstart a shift in an organization’s culture.
A teacher I had used the phrase: “don’t assume … it makes an ass out of you and me.” Find out from the people on your teams how they feel and what matters. The McKinsey article has a great list of questions to ask!
Discuss with your HR team the best benefits that have an authentic value to employees – find out what’s changed and what hasn’t. My takeaway for you … it was never all about the money!
Here are some of the *relational benefits* that I suggest: