We are not going back

2021 ended in a sea of global exhaustion. Nearly two years into a pandemic we have found no respite between COVID, vaccines, politics, masks, and “the great resignation.” We saw mothers leave the workforce in droves and essential workers across the country striking against low-wages and poor working conditions. According to the Bureau of Labor Statistics, more Americans left the workforce in April 2021 than any other month on record. While the majority of those quitting were part of the service-sector economy, we also saw an influx of older Americans choosing earlier-than-planned retirement. The big surprise to most employers was the exodus of white-collar workers. According to MIT Sloan Management Review, the management consulting industry had the second highest attrition followed closely by internet and software industries.

So, what is the number one reason for this attrition? No, it is not pay, or even benefits, the problem is a toxic work culture.

How it started

For generations, the private sector had secured a work culture which became synonymous with Capitalism. White-collar workers subscribed to a Monday through Friday work week and 8 hour workdays. We packed lunches, dropped our kids at daycare and set out on our daily commute. Many of us sat in cubicles for years, dreaming of the day we would get an office with a door or the chance to sit by a window. There was a concept of “paying your dues” which was prescribed by our parents, teachers, colleagues, and managers. Employees that came in early, left late, and took stretch assignments were perceived as high-potential and team players. This business norm was particularly challenging for working mothers who had always carried the greater household burden. Too often women were overlooked for promotions and management opportunities because they had, or were assumed to have, family obligations.

As technology advanced and the internet became accessible to most US households, the culture of 24/7 work began. While people continued to go into the office, they also began checking emails and logging back in after dinner or when the kids went to bed. The line between work and personal life became blurred. We kept up with work on our smartphones, checking in once before the lights turned out, and once before we stepped out of our bed in the morning. ?I recall an annual review where I was given praise for my timely responses to emails while on vacation, now that’s real dedication!

Companies began to redesign offices using open-plan concepts which were not only less expensive to build but also promised an increase in collaboration and creativity. A 1984 study claimed that open-plan offices would foster a “shared mission and breakdown hierarchies providing a friendlier atmosphere.” Unfortunately, there was also a downside. ?A study shared in the Journal of Environmental Psychology determined higher employee dissatisfaction with the noise and lack of privacy. 85% of employees were dissatisfied with their work environments and struggled to concentrate. It also found that 95% wanted to be able to work privately but only 41% were able to. Workers were less stressed when able to work from home than in either an open-plan or cubicle office environment and 77% of workers felt that flexible working increased their productivity.

The corporate push to retain onsite workers also led to a multitude of creative perks such as:

• Casual Fridays
• Subsidized lunch plans
• Onsite exercise facilities and group fitness options
• Free snacks
• Massage Mondays, Taco Tuesdays, Waffle Wednesdays....you get the idea!

While these types of benefits became synonymous with work culture, the reality is that when you remove the office from the equation (like in a pandemic,) these perks no longer amount to much.

In the United States, over 50% of households are dual income. More and more families need two incomes just to maintain a middle-class life. Childcare and housing costs have continued to rise while salaries remained relatively flat. Executive leaders charged with establishing the values of a company may not always understand the plight of their workforce. According to the Economic Policy Institute, in 2020 CEO’s were paid 351% more than the average worker. While the average American compensation grew by 18% from 1978 – 2020, the average CEO compensation grew by 1,320%!

Where it's going...the decade of the worker

So, what does this all mean and how does it equate to the great resignation?

1.????The fundamental purpose of corporate perks and office design was to increase onsite productivity.

2.????The 24/7 work culture encouraged employees to work in an office and then provide additional availability outside of core business hours resulting in massive burnout and a non-existent work/life balance.

3.????The disparity in compensation between executives and employees has evolved into a corporate culture disconnect.

4.????The lack of flexible work options led to a mass exodus of women from the workforce.

While COVID brought these issues front and center, they had been brewing for some time. Organizations have a responsibility to their employees to do better.

Workplace transformation suggestions:

1.????Promote diversity, equity and inclusion (ensure that corporate values align and are being exemplified by senior leadership)

2.???? Hire for culture “add” not culture “fit” (train your interviewers!)

3.????Implement remote, hybrid, asynchronous, and part-time work options

4.????Provide paid family leave and promote a family-first culture

5.???? Increase PTO and/or implement unlimited time off (I used to save vacation time so I could use it when my kids were sick!)

6.???? Create a supportive environment for caregivers (long hours and facetime don’t equate to great performance)

7.???? Train management to support remote teams

8.???? Create a safe environment for employee feedback without fear of retribution

9.???? Implement Employee Resource Groups

10.? Provide cross-functional opportunities so that employees can meet and engage with their colleagues (it’s easy to become siloed when remote)

11. Encourage employees to rest when they are sick (remember the perfect attendance award?!)

12.? Advocate for federal family leave and subsidized child care (I can dream)

13.? Increase communication and transparency across the organization

14. Make the mental health of your employees a priority

15.? Provide opportunities to celebrate achievements and recognize contributions

16. Consider a four-day work week

The future is now

We have the privilege of being at the forefront of a new age. As Gen Z enters the workforce, let’s acknowledge where we’ve been, and consider where we want to go. Let's commit to a healthy, balanced, and equitable future for everyone.