In This Episode
If you’ve listened to our show for a while or if you know us off the air, you likely know that we are big fans of Inc. Magazine. Not only do they usually have great articles related to entrepreneurs that are easily digestible, they also have many inspirational stories. We saw a recent article addressing something that is impacting every business (large or small), The Great Resignation. According to the U.S. Bureau of Labor Statistics, between April 2021 and September 2021 over 24 million American employees left their jobs.
Chances are your business was impacted by these resignations. The article helps dispel a common myth which is that the main reason people are leaving their jobs is because of the pay. The Inc. Magazine article references a study from the MIT Sloan Management Review which says that compensation ranks 16th in predicting employee turnover. The top 5 reasons people are leaving include:
- Toxic corporate culture
- Job insecurity and reorganization
- High levels of innovation
- Failure to recognize employee performance
- Poor response to COVID-19
The study even shows how each of these to 5 compare to compensation in terms of importance and toxic corporate culture is 10x more important than compensation! Let that sink in for a minute. Culture is 10x more important than compensation. Does that align with how you are running and leading your business?
The article goes further to even provide some guidance for what can be done in the short term to try to mitigate the potential resignations. Here are the top 4 short term steps to increase retention:
- Lateral career opportunities
- Remote work arrangements
- Company sponsored social events
- Offering predictable schedules
During the show today we took a little deeper dive into these findings to help provide some guidance on what you as a business owner can be doing to not only attract but retain good people. Let’s look at this Great Resignation as an opportunity for your company to shine by being able to retain your current team and attract the right new people!
People, Companies and Resources We Mentioned in the Show
- Inc. Magazine Article on Great Resignation (https://www.inc.com/jessica-stillman/great-resignation-mit-revelio-research.html)
- MIT Sloan Management Study on Great Resignation (https://sloanreview.mit.edu/article/toxic-culture-is-driving-the-great-resignation/)
- Jim Collins, Good to Great (https://www.jimcollins.com/article_topics/articles/good-to-great.html)
- Dirty Jobs with Mike Rowe (https://en.wikipedia.org/wiki/Dirty_Jobs)
- Ford (https://www.ford.com)
- Tesla (https://www.tesla.com)
- Extended DISC (https://www.extendeddisc.org)