The Great Resignation is over... for now. The economy has slowed, and so too has recruitment. Many employers and HR professionals will have breathed a sigh of relief that the employee exodus has subsided.
Yet half of US employees are, in fact, looking for a new job, and the UK looks set to follow a similar trajectory. Employees may turn up every day – but are they going all out to do great work, or merely treading water until finding another job? The risk is that companies are holding on to people who feel stuck in a role they aren’t connected to.
Read more: How can HR drive authentic engagement?
The result? Nosediving engagement and productivity. In the UK, low engagement already costs £257 billion annually. And US employee engagement has now dropped to the lowest level in 10 years. Ignore these trends and you may end up with the Great Resignation 2.0 when the market picks up. This situation has been named the ‘Great Detachment’, and poses a looming workplace challenge.
To tackle it, let’s first understand what’s causing this sense of detachment. Tightening budgets often mean job cuts, with ‘survivors’ shouldering more work. A report by recruitment business Indeed Flex found that two in five firms face staff shortages, and businesses are cutting jobs at the fastest pace in four years. Some people feel burned out. Post-Covid, many also expect more from their employer. And detachment is felt most keenly by younger employees, frontline staff and full-time remote workers.
Read more: The employee engagement gap: from debate to action
So, how can we reconnect with employees? Improving employees’ connection with their organisation’s mission can lead to a 32% drop in turnover and 15% productivity uplift. It’s important for people to know the difference their company makes and feel proud of their work. Yet simply communicating the organisation’s vision often has limited impact. Rather, our research points to the line manager being the prime broker of people’s sense of purpose.
First, managers need to help their line reports play to their strengths: a key driver of performance and retention. Strengths are what we love doing, what we’re good at, and what energises us. Studies indicate that employees who use their strengths daily are 15% less likely to quit and 8% more productive. Therefore, upskill managers so that they know how their people do their best work, and help them use more of their strengths, encouraging them to thrive and stay.
Second, great managers agree clear performance outcomes, not just a list of tasks. It’s important to explain how these outcomes link to the organisation’s purpose to make a difference. Even better, teach managers storytelling so that employees have a vivid understanding of their purpose and contribution beyond the job description. For example, the hospital cleaner’s role helps save lives by creating a sterile environment.
Read more: How engagement between employers and employees has changed
Third, managers should have frequent, short check-ins with their people about how they’re doing and how they can use their strengths more. Done weekly, this is proven to reduce turnover by up to 67%. This also enables managers to spot and act on early signs of detachment before it’s too late. According to Gallup, nearly half of voluntary leavers report that their manager didn’t discuss their job satisfaction or future in the three months before leaving, suggesting that their decision to quit could have been avoided.
Employers and HR have a choice: act now to help managers manage their people well, and improve their sense of purpose and engagement. Or react to a potential loss of talent when the market becomes buoyant. Gen Z in particular are increasingly seeking ‘employers for life’ – organisations providing a strong sense of purpose, alongside financial security and work-life balance. Get this right and they’re likely to stay with you seven years, twice the time previously thought. Adopting a strengths-based approach to performance and development can significantly shift the dial on engagement and productivity – and help retain valued people for longer.
By Debbie Whitaker, a people and talent specialist for PA Consulting
