THE GREAT RESIGNATION COULD LEAVE YOU WITH NOTHING TO SELL - At the heart of every business's value is people. So for most business owners, particularly those thinKing of exiting their businesses in the next 5 years, the fear of the great resignation(s) is terrifying. I found this article by Eric Termuende was very inciteful for me and useful as it allows me to put together a game plan for my business to cope with what's coming. As we've always said, hope for the best, but plan for the worst. If I understand the possibilities, I feel empowered to be able to plan for them and weather the storm better than those using hope as their strategy.
Eric says "As we ride out the turbulent waters of The Great Resignation, we can see both good and bad news on the horizon. The bad news? The worst is yet to come. The good news? After the third wave, the better workplaces will be in a fantastic position for years to come." He outlines 4 different phases to come of the great resignation and I think they are as valid as any I've seen from any of the experts.
Wave 1 Resignations: Change by Force - Timeframe: 2020-present - Circumstances forced us all into a new world of working from home and we're burnt out now
Wave 2 Resignations: Change by Choice - Timeframe: present - June 2022 - Labour is finally going to have some power and is negotiating on the office comeback.
Wave 3 Resignations: Picking Favorites - Timeframe: June 2022 - December 2022 - "A" players are not negotiating anymore, they're moving to where they truly want to be.
Wave 4 Resignations: Kicking the Can Down the Field - Timeframe: December 2022 - June 2023 - The new normal is the old carrot and stick approach to keeping talent doesn't work. People will go to where there is better leadership and better culture.
Understanding all of this what can you do? Simply understand that people want to belong to a tribe, feel they have a place, are valued, their work makes a difference and the business does something they can feel good about. Also, they want to grow and improve themselves and their circumstances, so either grow them or lose them. Great leadership and cultures will win, ESG will win, the non-financial aspects of the company will attract the best people and these people will create superior value, and that generates superior financial performance. But it is only the companies with a long term perspective and the courage to invest in their people who will understand this and grow beyond carrot and stick to build engaging cultures that win.
I think Sir Richard summed it up best. To attract and keep people through the great resignations, "Train people well enough so they can leave. Treat them well enough so they don't want to." Treating them well enough according to John Spence is about:
Opportunity to Learn & Grow
Boss They Trust & Admire (High TQ)
Thank you Eric for your foreshadowing, it has given me some focus and makes me excited because knowing this, its going to be possible to attract some great talent if I'm willing to take the long view, invest now for the big payoff when its time to sell the business. This is the strategy I'm adopting for myself and the business owners I advise who want a maximum value exit and understand that great people are the key to achieving it.
I’d like to hear your thoughts on this, please share in the comments and pass it on. If you want to read Eric's full article click on the link below.