How Companies Can Thrive During “The Great Resignation”

Few would deny the fact that the COVID-19 pandemic upended the workforce across the globe. Mandated closures, supply chain disruptions, and work-from-home orders have radically changed the shape of many industries and have opened up the possibilities of new ways of working. However, well before the onset of the pandemic, the workforce was experiencing a shift in the balance between employers and employees in a trend that has since been called The Great Resignation.

For several years, employees—from entry-level to senior executives—have been quitting their jobs at a much faster rate than they have in decades past. This has led to labor shortages, staffing gaps, and hiring difficulties. And when companies can’t hire or retain their employees, business suffers.

While there are signs that the Great Resignation is slowing down, it’s far from over and we can expect its effects to impact businesses for several years. Therefore, in order for companies to remain productive and profitable, they must adapt their hiring and managerial practices to the changing landscape. Here are several measures that companies can take to survive and even thrive during the Great Resignation.

Equitable Pay and Transparency

For years, employees have been struggling under skyrocketing costs of living and seemingly stagnant wages. Now may be a good time to review your pay practices and ensure that your employees are being paid fairly regardless of factors such as race or gender. Regularly reviewing your market’s pay trends can also help ensure that your employees are being compensated fairly, which will ultimately reduce the risk of turnover to a competitor who offers a higher salary.

Additionally, employees value transparency around wages. In some places, such as California and New York City, some employers will be required to publish salaries on job postings, signifying a trend toward more transparency between employees and employers. Consider restructuring your company’s compensation policy in a more equitable and open way to let your employees know that you’re actively thinking about their financial wellbeing.

Flexibility and Work-Life Balance

The pandemic’s impact on the workforce can’t be overstated, but one of the most resounding and definitive side-effects is the expectation for greater flexibility. In fact, a 2021 survey found that 85% of respondents would prefer to apply for positions at companies that offered flexible working options such as remote working. Furthermore, 61% even indicated that they would be willing to take a drastic pay cut in order to retain their ability to work remotely.

Many companies found that their employees maintained or even improved their levels of productivity while working remotely during the pandemic. Employees, in turn, enjoyed working without a commute, rigid dress codes, or long hours away from home. And with gas, food, and clothing prices through the roof, cutting out expenses that come with working in an office is a top priority for many employees, leading them to seek remote positions.

If you’re struggling to recruit or retain employees and haven’t made the switch toward a distributed workforce, think about making remote working an option. Of course, some industries don’t have the option to do so, but if it’s feasible for your company, you should consider the benefits of allowing telecommuting. Most workers would prefer to have the option.

Create an Inclusive Culture

An extensive study by McKinskey and Company found that, among people who recently quit their job, 54% reported feeling undervalued by their organization while 51% did not experience a sense of belonging at work. Notably, most of the respondents who left their job due to a lack of belonging were people of color. The study also revealed that most employers misunderstand the reasons why their employees leave their jobs and vastly underestimate the importance of workplace culture.

By working to instill a company culture of inclusivity, your employees will feel valued, listened to, and respected in their roles. Start a diversity, equity, and inclusion (DEI) council, or hold workshops and training sessions that promote openness and respect. This will lead to higher morale overall, which will ultimately reduce turnover.

Learn more about creating culture with an online talent marketplace.

Consider Your Employees’ Physical and Mental Health

For better or for worse, the pandemic forced everyone across the globe to realize the importance of both physical and mental health. In years past, employees might have boasted about their ability to go to work while under the weather or refusal to take a sick day, but that climate has changed. Now, workers and employers alike should better understand that attending to physical and mental health needs is no longer optional.

Sick and tired employees will not be able to perform to their full potential. And expecting them to power through their workload will only lead to burnout or worsened illness. In our post-pandemic era, it’s more important now than ever to emphasize to your employees that they should arrive at work feeling both physically and mentally well. Encourage them to stay home or offline when ill, and consider checking in regularly during busy or stressful times at work to let them know that you’re thinking about their wellbeing. The result will be healthy, happier employees who avoid burnout.

Final words

The Great Resignation does not need to spell disaster for your company, but it should also inspire you to look at your organization’s policies and consider how they fit in with the changing expectations of the modern workforce. Adopting a more human, personalized, and empathetic approach to running a business can pay dividends in terms of employee retention and hiring. Big paychecks and company cars are no longer enough to attract new talent—you need to ensure that you communicate your messages of equity, flexibility, respect, and empathy to prospective and current employees. If you ignore the expectations of the labor market, however, you can expect to have a difficult time keeping and attracting new talent.

How Remote Symphony Will Transform Your Business

At Remote Symphony, we don’t just promote the online talent marketplace model; we live it. We are the first online two-sided talent marketplace that helps match talent to opportunities, specifically for accounting, finance, and IT. Currently, we work with companies across the globe who can boast an over 90% retention rate.

What recruiting or retention challenges are you trying to solve? Let us know, and we’ll help you tackle it.