Reigning in The Great Resignation: What Managers Can Do to Retain Great Employees
Remember when we thought the pandemic would be contained within a few weeks? Nearly two years later, we are still identifying new variants of concern. Simultaneously, there’s the emotional fallout of this time. Between worries over personal health, economic uncertainty, chronic stress and overwork, our employees have been coping with an unprecedented level of professional strain. In the wake of all this collective trauma, we are seeing the greatest mass exodus of employees.
Many companies are struggling to retain talent, and positions are remaining vacant—even as demand grows. Yet, leaders must create a workplace that is positive, motivating, and consistent for employees to feel valued and appreciated, if they expect their employees to be engaged and work well together.
According to a recent Gallup poll, nearly half of U.S. workers are actively looking for a job now, and a PwC US Pulse Survey of more than 1,000 workers showed more than 65% are looking to change jobs in the next 12 months. Widely dubbed “The Great Resignation,” this phenomenon is one of the top challenges facing organizations in 2022.
Even more startling than the record-high turnover is that more than half of those who are voluntarily leaving say their manager could have done something to entice them to stay. That turnover is so high, when it appears to be within the manager’s control, is extremely telling and reveals a gap between what managers think motivates employees, and what really does.
Traditional Rewards Alone Won’t Win Back Employees
What’s your first response when an employee says they want to leave? Be honest. If you’re like most organizations, you probably put together a counteroffer. This response is predicated on the assumption that these are the reasons why your employees are leaving: for money or added flexibility. In fact, more than 580 HR and L&D professionals were asked in a recent poll by American Management Association (AMA): What do you think is the most effective motivator of your staff? Their responses indicated the following:
- 35% said flexibility
- 33% said bonuses and salary increases
- 23% said compliments
- 8% said promotions and titles
When faced with a staff shortage, employers make the same assumptions: They offer an enticing package to make them stay, though it doesn’t take long to realize there are a few inherent problems with this type of response.
The Great Resignation is about more than that. If anything, it’s revealing that many employers rely too much on external motivators instead of internal motivators. We’ve long heard that people leave managers; they don’t leave jobs. Employees who aren’t intrinsically motivated to work and are not engaged in their jobs, are more likely to be tempted by external offers.
Today, most people have moved beyond basic physiological needs and are looking to climb into the higher levels of Maslow’s Hierarchy of Needs. They’re looking for physical safety, a sense of belonging, and a level of self-actualization. This is why internal motivators are more effective than external motivators. Internal motivators get at deeply rooted psychological satisfaction—intrinsic motivation.
There are three psychological needs that people look for today in their work:
1. Competence is the ability to do something successfully and efficiently. Employees want that satisfying feeling of a job well done. They want to feel they are good at what they do.
2. Relatedness is a state of being connected, a feeling of belonging. We are tribal by nature. People want to feel like they’re part of something bigger than themselves, and that they belong to a team.
3. Autonomy is self-directed freedom and the right to self‑govern. Employees want to feel like they have some control over how work gets done. They don’t want to be micromanaged; they want to be self-sufficient, creative and innovative. Employees need to feel they have the authority to prioritize work and make decisions on issues that likely aren’t covered in the employee handbook.
“What is really a revelation for some leaders is that all of these things are under leadership’s control,” says KC Blonski, Vice President, Corporate Learning Solutions at AMA. “Leaders can absolutely influence all three and ignite an employee’s passion. That’s what our corporate training is often about: developing a cadre of managers and executive leadership within an organization to foster a culture where employees thrive. You really can’t unlock the full potential of your organization without competent leadership and ongoing coaching.”
Create a Culture That Makes Employees Want to Stay: Tap into Internal Motivators
Connecting to your employees requires having an authentic conversation with them about their wellbeing, development goals, passions, career goals and values. Because these conversations involve two people, they are organic and fluid… and the manager needs to feel absolutely confident they can communicate effectively. This is especially true when the conversation has to cover more treacherous territory, such as shortfalls in work, job expectations, or what employees feel they need to get the job done.
Managers can also re-engage employees by learning more about them, their passions and career goals, what they value, and what they need to be more successful.
Here are three ways to help employees envision staying with you:
1. Talk about their goals and what they want to learn, or start doing, in the next 6, 12 or 18 months. Employees often get stuck on trying to plan out their career years in advance but should be able to identify skills and competencies they want to learn in the near future. Determine their unique strengths and value to the organization, and what they enjoy doing.
2. Get a sense of their aspirations and expectations. Leaders often avoid conversations like this because it can be a difficult area to control. What if the employee wants too much too soon or asks for things they aren’t qualified for? Leaders who aren’t skilled communicators would rather avoid awkward conversations. Employees, however, want bosses who care about their future. These conversations make them feel valued, even when you’re not able to meet all their expectations.
3. Finally, solicit ideas on what would make it a better place to work. Again, you may not be able to meet all their requests, but their answers may reveal emotional triggers you need to monitor, and it can help you address problems.
Having meaningful conversations with employees requires skill and some planning. “Satisfying psychological needs, in addition to basic needs, is how you really connect with people and get them to stay,” says Blonski. “Focusing on internal motivators leads to a more fulfilled staff, lower turnover rates, and even more satisfied customers. It comes from the inherent satisfaction of doing a good job instead of trying to gain a reward.”
In other words, it improves not only turnover, but your productivity and your bottom line.
About AMA
Re-engage your people today by increasing their sense of relatedness, autonomy, and competence. Contact the American Management Association or its European partner, the Management Centre Europe for your corporate solutions to these and other challenges.
For more information visit: www.amanet.org or www.mce.eu