The great resignation period and how to deal with it

There are 3 types of employees:

  1. Type A players – those who are given a goal and they overachieve it

2. Type B players – those who do what they were asked – no more, no less

  1. And Type C players– those who only have excuses why they CAN’T One of the biggest threats to companies nowadays is the lack of quality employees. No one wants to work anymore… Everyone wants to be successful; everyone wants to get rich and fast, with that being said no one wants to work. It’s not a simple task finding good employees these days. Corporate culture is at a turning point, it’s being reshaped by the pandemic – the acceleration of the automation and the rise of Millennials & Generation Z in the workforces. Employees are becoming more and more demanding, and most often they get what they want. The freedom to work where and when they want is amongst their top priorities. What we are experiencing now is the Great Resignation. The world has shifted. Employees now have all the power. Millions are quitting their jobs to make easy money; others are working multiply remote jobs from the comfort of their homes and so it’s getting harder to keep track of their work. The question for you as an entrepreneur and business owner is how can you redirect yourself when job shopping is on the rise? In fact, according to LinkedIn, twice as many job postings were viewed in 2021 compared to 2019, and when it comes to what workers are looking for, its all pointing to convenience and company culture. According to LinkedIn, 63% of workers say work-life balance is their top priority in a new job, followed by colleagues and camaraderie (40%) and culture (60%), all of which outrank compensation and benefits. Instead of a great layoff, we need a great wake-up call! As an employer, you can not control employee’s loyalty. You can be the best employer in the world, and yet giving positive feedbacks and bonuses is not going to guarantee that your employees won’t leave you for a better job. It would be nice if workers were grateful for the jobs they have, grateful for the money they get, and grateful for the opportunities entrepreneurs give them while putting everything on the line. But miracles are not to be expected. So, what should we do as entrepreneurs? Many organizations make the same mistakes:
  • Their A players tell B players what to do,
  • Their B players do C player’s work
  • And C players remain in the system…What is the solution?
  • Hire the right people for the right positions!
  • Create small groups of A-players – keep your A-players together because this will allow for tremendous growth if you do it right. This way, you’ll find that your employees can do more than they did before the pandemic.
  • Direct all the B players through just one A player.
  • Get rid of the C players quickly.

Another problem is the extremely high wages on the market. A-players are offered double what they earned before the pandemic, B-players are overpaid by 20-30% because it’s so hard to find good employees, and C-players are getting better at hiding their true nature, and you pay way too much until you find out what a disaster they are. So, entrepreneurs need to press the RESET button and better define their bottom line!

You need to define your business direction and profit goals. Then, you can work backwards and figure out how many potential customers/products/deals or contracts you will need to reach your goal. And now you need to build your business step by step, systematically, with facts, figures and statistics. You can not just wing it or do what you have been doing until now. It simply will not work. You would also get better at not only retaining employees, but also attracting new ones. You need to do whatever it takes to retain your A-players, because in the end, the ability to make:

– 0 to 100,000 NIS /USD/ EURO is based 100% on your efforts

– 100,000 to 1,000,000 NIS /USD/ EURO is based 80% on your efforts and 20% on your people

– 1,000,000 to 10,000,000 NIS /USD/ EURO is based 20% on your efforts and 80% on your people

– 10,000,000 to 100,000,000 NIS /USD/ EURO is based 10% on your efforts and 90% on your people

Conclusion: if you want to grow your business and take it to the next level, it WILL run primarily by your employees. You can not do everything in your business and expect it to grow. Yes, it will go faster if you do it yourself, yes it will go faster if you hire someone on the cheap and just tell them what to do, but you will never get to the next level, for that you need good employees. It is important to find out what your employees need. Often, money is not the first priority. In some cases, they may want to work fewer hours, be more flexible in time and location, develop new skills, and more. That’s what you need to find out.

A 2021 LinkedIn survey of what matters most to job seekers around the world found that work-life balance topped the list (alright, life-work balance), followed by excellent compensation and benefits. According to a report from LinkedIn Global Talent Trends, gone are the days when employees chose a job based on salary or convenience – what employees want is to work for a company where they feel heard, valued and comfortable. But do not just make assumptions, ask them and give them what they want and what they need. That’s the only way you’ll not only survive but thrive in this climate.

The alternative is to hold your ground and not pay more while others take your A players away, or do you give in?

This is a very important decision that will affect your bottom line whether you do it or not.

It may be frustrating because when you do something for your employees, they often forget about it, but that’s what entrepreneurship is all about. You take all the risk and responsibility and live by the motto, “If it’s meant to be, it’s up to me.”

About the Author
Yulia Levy is a CPA licensed in both the U.S. and Israel, Director in Technoplus Ventures Ltd - a public company traded in the Tel-Aviv Stock Exchange, and serve as a Managing Partner in BDO Financial Academy at the CPE Review Department since 2017, and the owner of Finally Financial Control LTD- Financial and Business Consulting. Happily married to Daniel and mother of 3.