The Great Resignation: Developing a Strong Retention Strategy
Beyond the devastating health crisis, the pandemic has caused much suffering to businesses around the world, as millions of employees quit their jobs in hopes of finding greater satisfaction in their lives. No sector has been spared from this continuing economic trend. A new report from Amrop outlines how companies can build a retention strategy to retain their top talent.
August 4, 2022 – Significant shifts in recent employment rates have forced employers to reassess their approach to employee retention and the factors that affect the longevity and strength of a workforce. The Great Quit, in which millions quit their jobs in search of a better way of life, has caused upheaval in nearly every industry, creating large gaps in talent and production, while having a impact on budgets and business morale, according to a new report from Amrop.
“At Amrop, we have noted significant trends in our partner countries – the ripple effect of what the US Bureau of Labor Statistics reports as 47.8 million Americans quit their jobs last year” , said Annika Farin, president of the Amrop partnership and managing partner of the German office. “Our position as a global leadership consulting and executive search firm allows us to analyze and anticipate these challenges in other territories, helping our global network with strategies to deal with the great resignation. “
Amrop’s data shows that after being hit hard in the US, the big quit is now impacting a wide European territory, forcing smaller countries to take note of the retention lessons learned in the US. The study also notes that Europe’s demographics are impacting the labor market, as baby boomers are all coming out quite simultaneously. “This is particularly evident in Germany, we see it everywhere now, and we have to be creative about it,” Ms Farin said.
According to the president and managing partner of Amrop Italy, Antonio Pellerano, the phenomenon affects 60% of companies in Italy and several thousand jobs, mainly in the digital and ICT fields. Similar trends can now be observed in Eastern and Western Europe.
Consider new jobs
Although a Microsoft survey conducted last year found that 41% of the global workforce is considering quitting their job, the expected quit rate in the executive class is significantly higher. A recent Deloitte survey shows that almost 70% of C-suite employees in the US, UK, Canada and Australia are seriously considering quitting their jobs.
The study revealed that 81% of senior executives believe that improving their well-being is more important than advancing their careers, as they go in search of a better life. This lifestyle quest is now spreading across European countries, forcing companies to pay close attention to their CEOs, CFOs and other C-level employees as they reassess the role of work in their lives.
“Amrop develops retention programs that keep employees engaged, productive and employed – always aligned with business needs and goals,” said Ms. Farin. “A multi-faceted, focused and personal strategy is essential, supported by a trusting and secure working relationship between employer and employee.”
The retention advisory service developed by Amrop Woodburn Mann and the Woodburn Mann Leadership Science Institute offers an example of such a program, and one that the Amrop network around the world is learning from when it comes to partner retention strategies. . It focuses on the principles of enhanced engagement – at the personal and institutional level – that facilitate solutions for executives within a company.
Loyalty and long-term delivery
“The program cultivates long-term loyalty and delivery, improves the retention proposition and incentivizes leaders to stay with the company,” said Andrew Woodburn, managing partner at Amrop Woodburn Mann, who sits on the global board of directors. of the Amrop partnership. “In most cases, the person is not informed that they are in retention counselling, because this knowledge could create an awkward dynamic between them and their employer. Instead, they are given an executive development opportunity. Together with the employer, we design a program to overcome some of the challenges that cause the employee to become a flight risk. »
Related: Deepening the Great Resignation
Mr. Woodburn advises companies to do more than just meet the needs of employees. “In many cases, culture and retention stem from the leadership style that flows from the top,” he said. “Therefore, systematically, the culture and leadership of the organization must be supported from the top down. This is a long-term program that can take many years to execute within a organization, requiring dedicated cultural engagement and corporate buy-in.
Managing during the big resignation and reshuffle
The big resignation and reshuffling continued through the summer, and it’s hitting the C-suite especially hard. As demand for top talent outstrips supply, talented executives are more likely to consider outside opportunities, according to a new report from DHR’s Mike Magsig, Mary Matthews and Heather Smith. Therefore, companies looking for such talent need to be creative and flexible in the selection process.
Additionally, high-potential mid-career executives are open to other careers, according to the DHR report. “Employers must find ways to accelerate the careers of high performers beyond the pace and substance of pre-COVID practices,” he said. “A clear career path has become necessary to retain the most valuable employees. Employees who have already built career capital are reshuffling, and since the C-suite isn’t immune to the big quit, business succession planning has become more important than ever.
It recommends a diverse facilitation mandate when creating such a program. “This should include attitude, current organizational environment, any personal issues, education and training, leadership, compensation, role scope and future expectations. This broad palette should highlight the critical issues that need to be addressed by the retention program, in order to generate a workable solution for both employee and employer.
“At Amrop, we encourage companies to incorporate retention plans into their mandate to attract, develop and retain talent,” Ms. Farin said. “Our goal when working with companies is to retain the knowledge of the company by retaining very valuable employees over the long term, particularly in the executive category. The experience, qualifications, networks, insight, understanding of the business and the ability to contribute beyond a leader’s KPIs are highly prized commodities – and these C-suites should be central to a company’s retention strategy.
To ensure good retention planning, Amrop recommends an agile approach that considers the individual and their overall well-being. “Companies that can provide flexibility to their employees and understand their needs and values are more likely to maintain a stable and competitive workforce,” the Amrop report states. “Offering attractive benefits, committing to long-term career opportunities, facilitating training and investing in continuous learning will instill greater loyalty, retaining talented and motivated executives who are committed to the success of the organization. organization.
Founded in 1977, Amrop advises organizations on executive search, board research and leadership. The organization has 65 offices in 53 countries.
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Contributed by Scott A. Scanlon, Editor; Dale M. Zupsansky, editor; and Stephen Sawicki, Editor – Hunt Scanlon Media