After two solid years of strain, stress, and pain associated with the cataclysmic changes in business, teams within businesses are feeling the strain. They are tired. They are exhausted. And in a lot of cases, team members are quitting. Not to go somewhere else but just quitting. Going to go take care of their kids. Or start a business. Or move closer to their extended families. This is leaving remaining teams in further despair and further strain.
I’m noticing a trend in this area – CEOs of small or large businesses seem to be ignoring the reality of what is occurring here. Right now. They are doing so at their own peril and it’s hurting their businesses. Many are not quitting because they don’t like their job. They’re quitting because they don’t like their manager, their company culture, their CEO’s acrimonious attitude of “Let them eat cake.” If you’re one of the CEOs taking this approach to the current trend, I wish you well. Your future at some point will be in jeopardy unless you just happen to run or own a monopoly. Not too many of those out there.
So what are you to do? I’d advise an immediate 4-step plan starting today:
1) Assess where you are on talent – now. ASAP. This weekend.
2) Assess where your current workforce stands – you might not like the answer but better to find out now vs. later the hard way.
3) Create more value for your customers – to provide you the financial space to pay your people more or increase benefits or deal with a remote work environment. I am not advocating just simply raising everyone’s pay. But you better start evaluating it now. The cost of losing good people is a staggering cost to a business – lost knowledge, lost time, lost energy, and the cost to replace. Per Gallup, the cost of replacing an individual employee can range from one-half to two times the employee’s annual salary – and that’s a conservative estimate!
4) Engage your team now to help you revise your business strategy. If you haven’t thought about your business strategy recently, it is time. ASAP. Even if you believe you have a sound strategy, you really should re-evaluate it in light of recent development in labor and competitive pressures.
“Creating success is a tug of war between your mind and your heart – your fears and your dreams. If your fears win, you lose.” – Robert C. Allen