As The Great Resignation and Reshuffle continue into the summer, DHR is seeing this movement particularly in the C-suite. While the demand for top talent exceeds the supply, talented executives are more inclined to consider external opportunities. Therefore, companies seeking such talent must be creative and flexible in the selection process.
In addition, high-potential, mid-career executives are open to alternative careers. Employers need to find the means of accelerating high-performing employees’ careers beyond the pace and substance of pre-COVID practices. A clear path of career trajectory has become required to retain most valuable employees.
Employees who have already built career capital are reshuffling, and since the C-suite is not immune to The Great Resignation, corporate succession planning has become more important than ever.
The Rise of The Resignation & Reshuffle
Workers, globally in many instances, aren’t just leaving the workforce (resignation)—millions of people are reconfiguring their careers (reshuffle). Some are leveraging the current hiring crisis to facilitate a stronger career position.
Others have decided to work for themselves—with the number of self-employed workers in the US rising by 500,000 since the pandemic.* Many more, however, are simply shifting into new industries and careers that offer higher wages or better align with their values.
“For talented individuals, in high-demand industries like tech, we’re seeing a lot of movement. People are finding jobs that give them the right pay, benefits and work arrangements in the longer term.”
– Anthony Klotz, Associate Professor of Management at Texas A&M University, and the originator of the term “Great Resignation”
Get the Facts
Globally, 72% of senior leaders were thinking about leaving their role in the next two years; in Singapore, that jumps to 80% of senior leaders.1
Firms with poor succession planning are hindered by a weak leadership pipeline and will grow their revenue only half as fast as more-prepared competitors.2
At least one quarter of high-potential people will likely leave before the opportunity they are being developed for becomes available.3
Managing through The Great Resignation & Reshuffle
To attract and retain top talent, focus on leadership development and succession planning.
Focus on Followership
Future C-suite leaders need to learn to create followership momentum and not just leadership strength. Leaders become great because people are willing to follow them. Ambitious professionals follow individuals who create and drive success, including providing them with opportunities to grow professionally and advance their career.
Create C-Suite Redundancy
Intentional redundancy within an organization requires developing several people at the same time for critical roles—especially
C-suite positions. Establishing coaching and development programs for high-potential employees will support this plan. External candidates should also be cultivated for these positions by creating strong talent pipelines.
Refresh the Succession Plan
To ensure succession continues long after the pandemic disruption passes, focus on long-term talent plans. Refreshing the succession plan now will prepare strong leaders to be fit for the future. Build and successfully execute a well-constructed succession plan to mitigate risk and retain top performers looking for growth opportunities.
Chief Takeaways
Companies will continue to face The Great Resignation and Reshuffle this summer and beyond.
Talent strategies such as leadership development and succession planning will position companies for success, providing many benefits:
- Mitigate risk from attrition
- Retain top performers by providing growth opportunities
- Attract talent seeking an elevated career path
Supporting Your Board
At DHR, we stay on top of key trends impacting our clients and their businesses. We strive to keep our clients well informed, connected, and prepared for a future of value creation. Contact us if we can provide additional insight or service to meet your needs.
*The Wall Street Journal, Workers Quit Jobs in Droves to Become Their Own Bosses, Nov. 2021
1 Kelly OCG Global Workforce Report, May 2022 | 2 Gartner, HR Leaders Monthly, June 2022 | 3 Microsoft’s 2021 Work Trend Index