By now you don't need to be convinced that “The Great Resignation” is real. 82% of companies needed help with talent acquisition and retention over the past 12 months.   Job openings outnumber unemployed workers by millions, yet many recruiters remain on a hamster wheel of hiring.

And if you're like many businesses that lost talented employees last year, you know that plugging perpetual holes in your workforce is a quick route to burnout.  Work as we knew it is gone, but strong people-centered leadership can help ease the transition into a new work normal.

"Work" will never be the same

The effects of COVID-19 motivated many to re-evaluate their work, and their conclusions weren't pretty:

The 2022 State of Talent Optimization Report found that 1 in 5 workers quit in the last six months. Many businesses know the painful truth of this firsthand, watching talented employees leave and struggling to pick up the pieces.  Understanding the why behind this mass exodus is the first step toward a sustainable solution.

The same survey found a mere 37% of respondents had a talent strategy in place - an indication that they hadn't started solving for "how," let alone "why.

The No. 1 driver of attrition is inflexibility. 

When asked why they believe their people are quitting, executives (32%) cited inflexible work options more than any other single source of attrition. From hours to work location, workplace flexibility has become essential to the modern skilled employee. They want freedom. If they can't find it at their current organization, they'll search for it in the open market. 

When you consider the cost of hiring, onboarding, and training new employees, it's no surprise some 75% of execs say The Great Resignation impacted their financial stability. The definition of work is still very much evolving, but one thing is clear: Inflexibility comes at a steep cost.

Talent Optimization is the way forward

Adoption of a talent optimization mindset is key if you want to reverse the great resignation's effects.

Companies with the right people in the right roles have 42% lower turnover, and talent-optimized companies are nearly twice as likely to avoid the brunt of “The Great Resignation” as their peers.

When you understand the people you have, you can enable them to thrive in their roles. When you know the behavioral and cognitive traits new candidates will need to succeed in a role, you can recruit with speed and precision. With a clear, scientifically backed picture of each applicant, you can hire with purpose.

Why HR needs an executive-level seat at the table

Whether you're a small business or an enterprise-sized behemoth, the health of your people and vibrance of your work culture are vital ingredients in your success. Even the most dynamic C-suite executives will struggle to lead a team of misaligned employees. Even the most skilled employees will underperform once they've become disengaged and burnt out, because they're poor fits for a role.

But who manages this, on a larger scale, for the entire organization? Who keeps their finger on the pulse? With no designated leader at the helm, the responsibility gets “shared” among executives. That shared responsibility often becomes an afterthought as the pressures of work ramp up, and people fall through the cracks. 

Your ability to retain and grow your talent is just as impactful as your ability to steer your finances or advance your technology.  Having HR or People Operations reps at the executive table can help ensure the big-picture vision for your people matches the big-picture vision for your organization. The right HR executive can not only lead an effective response to “people problems” as they arise, they can work proactively to prevent them.