Have We Gone Back to the 90’s with a War for Talent? Strategies to Combat the Great Resignation

By Laura Crothers, President, Crothers Consulting
Recent conversations are taking me right back to the 90’s war for talent.  Here are just a few of the comments I’ve heard from leaders I’ve been speaking to the last few weeks: “My son just graduated with a BS. He was made an offer and before he even started the company increased his base by 30% (had not yet worked one day on first job)!” “My friend (a five-year CPA) was asked how much do you make? Then they offered double – hard to say no to that much money.” 

“I’ve increased our 2021 merit pool to 15% to try and retain talent.” “I saved one by counter offering this week but lost another – it’s a killer.” “Two new hires ghosted us on day one in August.” “As an owner I’ve decided to risk my compensation by putting it all back to employees to keep them above market - seriously above – like 30%. It’s a bet on our future.” “What new benefits can we differentiate with – pet insurance, mental health programs?”

This brings up a very important topic. How do companies retain employees in this environment and stay competitive? Although these situations are fluid, there are portions within our control, namely culture and leadership.  As a 30-year HR professional who’s lived through good and bad times, I’ve found the main reasons people leave their current job are not money - assuming you are paying market rates, which you need to stay on top of, especially in industries which continued to prosper through the pandemic. They are: 
- To get away from a manager, team, or culture they don’t like or feel connected to 

When there is something, they want or need that isn’t filled at their current company such as:
- More flexibility. It could be that the new company is all virtual and existing has mandated some in-office time  
- Benefits (for a personal situation – ill family member, infertility, life partner)
- Promise of balance (to counteract current burnout)
- Career growth
- A connection to a purpose – bettering the world somehow
- To be heard, appreciated, and valued 

After the last 18 months, many people have strong impressions of the organizations that supported them (or not) through this turbulent time.  They like and respect the leaders (or not) and they have a feeling about the type of culture that is displayed - not the one that is talked about on the posters, but where rubber meets the road.    There are two type of jobseekers - active and passive. It’s typically the passive ones you have a chance of retaining.  If they are actively looking, there is a strong reason for it, and it’s harder to turn that ship back around. So, in my opinion, let’s focus on the passive jobseekers.  

Passive jobseekers pick up when a headhunter calls, or reply to the LinkedIn recruiter outreach, ‘just to hear them out.’  Let’s assume those passive seekers took the bait and are intrigued by what another firm is offering. Do you have a culture which would encourage them, without retribution, to come to you or HR before they make the decision to resign – to have an open, honest conversation? 

When employees share feedback about the market or their needs, it is truly a gift they give to leaders they respect.  What do you do if someone gives you this gift? - Don’t get aggravated or trash the other firm - Listen and learn - Don’t beg them to stay - Inform (they may not know about something you currently offer/are planning)

Survey employees frequently - focus groups, one-on-one skip level conversations and surveys are ways to gain valuable insights.  Ask the tough questions and then LISTEN and ACT. Talk about your culture and why your company is different.

Finally, if an employee does decide to leave, how you “exit employees” is just as important as how you onboard them.   - Allow them to leave with grace  - Tell them they’ll be missed  - Get exit feedback from them and thank them for their candid answers - Keep the door open for the future if their new job doesn’t work out. Tell them specifically – “if you decide the grass isn’t greener – call us – we’d welcome you back!”  

And my biggest hint:  Follow up with that departing employee in 8-12 weeks and six months to see how they are doing. They may miss your company and give you an opportunity to rehire them.  Bottom line, a good offense is often the best defense.

​By listening to your team, anticipating their needs, and creating a culture that makes folks think twice about giving up, you’ll have an easier time keeping your best employees and attracting new ones. For help building a culture that's too good to give up, learn more about Crothers' HR consulting.