Talent Shortages with the Great Resignation Continuing – What Are Risk Thoughtful Solutions?

Talent shortages are ongoing for 2022 creating heightened operational risk for organizations. The last two years have required leaders to put action behind empathy. The view that individuals were easily replaceable, and the corporate culture was healthy has been exposed to all of its shortcomings.

Let’s take a look first at the turnover cost to measure risk impact. Amounts in USD:
➡️$0-50k……………… .5x…. Annual Salary
➡️$51k-100k ……….1.0x .. Annual Salary
➡️$101k-200k………1.5x .. Annual Salary
➡️$201k ………………2.0x.…Annual Salary or More

This includes the training costs to make the new employee productive, but also getting the new employee to the same level of productivity as the previous employee. Plus, recruiting costs, lost productivity while the position is open and the strain on other employees covering for the expertise gap (burnout).

The traditional approach is to look at turnover from the rear-view mirror rather than looking ahead. How about implementing Stay Interviews vs. Exit Interviews in order to connect with the employee experience proactively?

The Society for Human Resource Management suggests the following questions for a Stay Interview:
1️⃣   What do you look forward to each day when you commute to work?
2️⃣   What are you learning here, and what do you want to learn?
3️⃣   Why do you stay here?
4️⃣   When is the last time you thought about leaving us, and what prompted it?
5️⃣  What can I do to make your job better for you?

This approach allows for the collection of data by leaders to act upon. A key element is closing the feedback loop to let employees know what feedback is implemented and why some feedback is not. Leaders need to share the story of the How, What and Why.