Have you noticed that people are resigning from their job?

The other day a friend of mine told me that she had quit her job. Leaving behind a career in a company, where she had been for 30 years without a news job on her hand. Several  colleagues of hers told her that they were thinking about following in her footsteps. 

I have conducted hundreds of interviews with ambitious and skilled women, who left their jobs because of the lack of opportunities and acknowledgement. I have also seen people from my own field rotating in D&I jobs. When I open my LinkedIn I often see people leaving their jobs - looking for new adventures. They are quitting and will use the time to think about what they want to do. 

In the US, they have coined the term: “The Great Resignation”. Culture Amp found that: 

“As many as 95% of employees are thinking about leaving their jobs”

The Great Resignation is in many ways a privileged western trend. It is the modern individual (with a fuck-you account) who’s seeking a meaningful life and not looking to settle. We are high enough on Maslow's Hierarchy of Needs to seek more of work than a payslip. Looking for meaning, recognition, and belonging. Again, it is a privileged position, because not everybody has the opportunity to quit their job, because there has to be more in life than a pay slip.

We are repeating ourselves. But data matters

During - and post, the Covid-19 pandemic there has been a lot of talk here and there, about people losing their sense of belonging. Furthermore, leaders didn’t know how to lead and connect remotely, and people were basically resigning. 

In the US they measure and have data on this issue. McKinsey wrote that: 

“More than 15 million US workers - and counting - have quit their jobs since April 2021, a record pace disrupting businesses everywhere. Companies are struggling to address the problem, and many will continue to struggle for one simple reason: they don’t really understand why their employees are leaving in the first place.”

It made me think that Danish companies are probably suffering from the same. Maybe not at the same pace, where we can pull the same kind of data as McKinsey did in the US, but I still see the trend, when I open LinkedIn.

That automatically leads to the question of why are companies hesitant to collect useful data and insights, and then take actions on them? It comes with a high price not to do so.

Lack of data is coming with a high price

The cost of employee turn-over is really high and a major concern. I have seen US numbers as high as 20 - 213 % of the annual salary for employee turn-over. Randstand conducted a study that showed a cost of 500.00 DKK, if an employee is leaving within the first half year. 

When an employee, who holds years of experience, knows someone in every department, knows all the practices and just has been a loyal and stable team member,  suddenly leaves  the company, it comes at a high cost. 

Furthermore, if a person who can actually disrupt old habits and thinking with innovative ideas or just new perspectives, but is not feeling included and then resigns from the company within the first half year, the company also misses out the benefits of diversity - and recruitment costs go up.

My friend  for example wasn’t asked to participate in exit-interviews. The organization could benefit so much from that knowledge and data.  

Exit interviews are gold mines, when it comes to understanding people's motivation for leaving you. Aka, ask them why they are breaking up with you. 

The same with Inclusion Surveys - the insights you get from an inclusive survey is massive. You can create a baseline to measure your level of inclusion and benefit from all the ideas and knowledge the organizations will get from the survey. You can identify where you need to take action in order to increase retention and a high performing organization. Know how to promote higher inclusion levels. Identify specific groups who aren’t getting the same experience as others. 

Retention-talks: Another way of collecting important insights

Between the two; exit interviews and Inclusion Surveys, leaders should be having personal, informal conversations with their team members. Not structured talks like performance appraisals (whether quarterly or annually) , but talks with real interest in the individual team member in order to retain a specific valued and talented person, or individual with potential to grow. 

Here are some tips on how to have retention-talks:

Choose an informal setting like a coffee-shop instead of the office. It gives you the opportunity to connect with your team member

  • Be fully present and listen carefully with real interest 

  • Create a safe space where you acknowledge that the person in front of you is more than a member of the workforce. They are an  individual that should be seen and treated holistically. Give them room to be a human being, who's needs will differ during their lifetime.

  • Show your own humanity and vulnerability. As a leader you set the example that should be followed. Team members tend to copy the leader unconsciously. 

  • Ask what motivates the person, what would the person like to change about the position, the team, the organization, your leadership (and be grateful for the insight). Be curious about what is appreciated and what can be improved. 

Most importantly, take action afterwards. It is essential that the meeting is not just for show, but that you are using the insight to meet the needs and retain your talent. And even more important, keep the space safe. 

If you would like to know more about how to create a working environment where everyone thrives, or how to train your leaders to become more inclusive and compassionate so they can create a performing team, reach out and we will dive into your needs.   

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Veronica DybdalDiversity Factor ApS