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Yeesh. Labor statistics are dreadful. In case you haven't noticed, see the following data:
41% of workers around the world are planning on leaving their jobs (Data Source)
55% of American workers plan to seek new jobs in the next 12 months, and that number goes higher for GenZ and Millenials (70%) (Data Source)
According to Gallup, the global workforce is disengaged. Only 20% are engaged, and in the US, the number of engaged workers rises to >30%
Digital Overload has profound effects. Digital overload affects nearly half of employees, with employees reporting feeling overworked, pressure to be always on, and more pressure to be online and available.
According to the US Department of Labor Statistics, >4 M employees quit a month, rising from historical trends.
Blame the Pandemic?
Lest you think these numbers hail the eccentricities of the pandemic, I'll point you to yet more data. Data from the US Bureau of Labor Statistics suggests the pandemic is not the sole source of blame.
The pandemic can be blamed for halting what was already trending and then accelerating what was trending since 2010. What the pandemic cannot be blamed for is starting the Great Resignation. It was already upon us.
The pandemic accelerated what was already happening.
The cost of Disengaged Employees
Gallup reports that disengaged employees are stressed, unhappy, overworked, and feel under-appreciated. That costs companies employees. A staggering number of Gen Z and Millennials are seeking other jobs. Gen Z and Millennials are 2x as likely to seek another position over Baby Boomers, and the organizational implications are deep and wide. The cost of turnover is stark for employers.
Organizational Implications:
The cost of turnover is high
According to the Work Institute, it costs companies 33% of a current employees' annual salary to replace that employee
It's more cost-effective and makes good business sense to retain employees, but employers struggle. With more job openings than persons to fill the positions and changing employee mindsets, offering cash benefits to retain employees appeals to far fewer segments of employees, if any at all. Many employees seek non-traditional benefits, and trends show that traditional gifts carry little to no weight with employees.
Moreover, employees aren't worried about finding another job before leaving their current one. While most employees won't resign until they have secured an alternate one, nearly the same amount of employees are willing to quit without having a new role lined up. The remainder are confident they can find another job if they leave. To confirm what we already knew, this is an employee's market.
Benefits of the Engaged Employee
It seems a no-brainer that companies would want engaged employees. Studies show engaged employees are happier, more productive, more effective, and more profitable for companies. It's a bit of a puzzle to design a traditional solution when Gallup's studies reveal that only 29% of Gen Zers value pay. This would suggest that non-traditional benefits are more valuable to employees, such as time off to pursue hobbies and professional and personal development. An employer who cares for the whole person shifts the traditional paradigm of leadership, and this shift leans more towards a women's leadership strength kit. According to a McKinsey report, women leaders have stepped up to care for their employees, create a culture of safety and well-being, leading to employees staying, being engaged, and less likely to leave companies. However, the same can't be said for their women employees. They are exhausted with the uphill climb into leadership that favors men rather than women. This month's Lighthearted Leadership Podcast sheds far more light on this topic if you want to hear more data on women leaders.
What's more, when you have an engaged employee, they are less likely to leave their place of employment. The Research by Gallup shows that a more than 20% pay raise is needed to poach an engaged employee, suggesting there are profound benefits for employers to dig into and unlock this engagement puzzle.
What is clear is that the time for leadership is now and as last month's Better.com CEO gaff confirms, what is missing is leadership at the highest levels of organizations. And, women in those leadership roles being able to bring in a diversity of thought, innovation, and whole person-centered leadership. Employees have lost and are losing confidence in their employers. Employers and organizations are suffering.
Fortune 100 and Fortune 500 Turnover
What makes things worse is data showing Legacy Fortune 500 and Fortune 100 listed companies being elbowed out of those listings. There has been a 50% turnover in the Fortune 500 listing and 33% in Fortune 100 listings in the past ten years. Innovative companies will win out in the end. Accenture data shows this, and the Accenture data also shows that companies with a diversity of thought are more agile, tolerate mistakes, are innovative, and are more profitable. The reality is that 8% of Fortune 500 companies have women CEOs. Women make up half the workforce and are responsible for most purchasing decisions, yet women are absent in C-Suite and executive leadership halls. It's a male-dominated Suite, and as a result, companies suffer from a male-dominated culture that's further alienating the workforce in an already fragile environment. Companies are hurting with attrition going through the roof.
When will it end?
As last month's Better.com CEO's gaff proves, not anytime soon. It's been suggested to mandate women into leadership roles, but studies suggest it is, at best, a temporary solution that reverts to the status quo we see now. It's a multifaceted problem that will require a multifaceted solution that addresses bias, up-skill for women in the workplace, and address leadership and executive skillsets for all leaders. Equipping leaders with power, poise, and presence, a Fortune 100 Coaches certified solution, is a start to ensure women have the skills needed to succeed and thrive in the highest levels of leadership.
About Power, Poise, and Presence
If you are interested in expanding your organization's leadership skills for women, check out my Power, Poise, and Presence coaching program. Group or Individual coaching is available.
Organizations are losing money and innovation by not having women in equal levels of leadership. Yet, women leave the workplace, feeling pushed out as companies struggle to retain female talent. Power, Poise, and Presence equip leaders and, in a particular way, women with the powerful techniques for exerting their brand of strength, poise, and presence to reverse course and bring profitability and innovation back to the workplace.
Dr Lizette Warner, PCC
With over 20 years of executive leadership experience, including as a CTO and COO. Lizette specializes in using a neuroscience-backed methodology for balancing achievement & well-being.
Lizette’s coaching approach is practical, probing, and pragmatically calm. She creates a space where insights emerge even from unstructured beginnings.
Dr. Warner is the Founder of the Business Building Academy your go to source for learning, community and support to build and grow your business. See if you qualify to join.
Here are 3 more ways you can drastically increase your impact:
1. Read my book, now as my special gift to you and you’ll be first on the list for my next book, that'll keep you motivated, inspired and fed.
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