Is there a cure for the Great Resignation?

Everywhere we look, we see stories of the Great Resignation. Emerging from the COVID pandemic burned out and eager for change, a record number of people, particularly in the U.S., seem to be leaving their jobs.

Why? A developing body of research is looking at what’s driving people to quit, often without another job lined up. While mass resignation is not occurring in Europe like it is in the U.S., its lessons can be extended around the globe. Counterintuitively, it doesn’t seem to be mainly about salaries (though compensation always factors in). New research by MIT identifies toxic culture – a workplace where employees don’t feel respected, or leaders are unethical, or the company isn’t inclusive and diverse – as the number one cause. A recent McKinsey report said that what most people who are quitting or considering leaving are looking for is to feel valued by their organizations and their managers. “By not understanding what their employees are running from, and what they might gravitate to, company leaders are putting their very businesses at risk”, the report warned.

At our recent Global Alumni Reunion, we were lucky to count on the presence of Harvard’s Michael Sandel, who talked about the tyranny of merit, the subject of his latest book. For Sandel, the idea of meritocracy is deeply flawed; the playing field is never truly level, so a perfect meritocracy is impossible. Beyond that, Sandel believes that even a perfect meritocracy would be damaging: if success depends exclusively on one’s own effort, many people are left demoralizingly behind. The underlying message is: If you haven’t done well in life, you just haven’t worked hard enough.?

But what does it mean to do well in life? I’m not against meritocracy; on the contrary, I’m in favor of working hard and striving, and a business school like IESE rewards merit. But I also believe in valuing people on their own merit. Merit can be defined in many different ways: there’s merit in serving others, in looking after family, in setting an example of religious faith. There’s also merit in working hard and succeeding professionally and financially; it is just not the only - or even the most important - metric. As we recognize merit more broadly, we become less tolerant of income inequality, one of the great challenges of our times. If the pandemic has taught us anything, it is that our world is interconnected and our wellbeing interwoven.

This more inclusive idea of merit has immediate applications at work. Not everyone everywhere is leaving their job. People want to work for purpose-driven firms that treat them with dignity and respect – where their merit is recognized. It’s incumbent upon managers to create those sorts of companies, the sorts of companies where people want to work. That sounds obvious, but sometimes in a short-sighted view of business that prioritizes the pursuit of profit and productivity above all else, it is forgotten.

A disclaimer: I’m an eternal optimist. But what I find most hopeful about the Great Resignation and the reasons behind it is that they reinforce my own beliefs in the positive, impactful role of business and management. Changing the way we treat employees and colleagues starts with the individual, the manager. It can begin with something as simple as checking in with each member of your team, or organizing (COVID allowing) a team activity that is not all about work. It involves listening to complaints and grievances and exploring ways to solve them. It can mean thinking deeply about the merits of each team member, and asking yourself whether they likely feel valued in their current position. None of this is a guarantee that employees will stay – job markets and careers are complex – but it’s a start. And here’s another reason for optimism: you can start today.

https://sloanreview.mit.edu/article/toxic-culture-is-driving-the-great-resignation/

https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/great-attrition-or-great-attraction-the-choice-is-yours

https://www.youtube.com/watch?v=m65067cigHI