The Great Reset Reveals Why We Need a Coaching Approach to Leading

What some refer to as the Great Resignation and others are calling the Great Reset continues building momentum. Data from the U.S. Bureau of Labor Statistics show:

• 4.53 million Americans quit their jobs during November 2021, which was a 3 percent increase from the prior month and the highest number on record.
• In total, a record 20 million Americans quit their jobs during the second half of 2021.
• 10.6 million jobs were open across the United States at the beginning of December 2021.
• Just 3.9 percent of Americans were unemployed in December, marking a pandemic low and coming close to an all-time low.

It is worth noting these numbers mostly reflect conditions just prior to the rapid rise of COVID-19 infections caused by the omicron variant. That latest surge of the pandemic exacerbated the employment situation by resurfacing persistent COVID-driven challenges such as:

• Inconsistent guidance from federal and local government agencies,
• Confusing work-from-home and office attendance policies, and
• Caring for kids who are at home because their schools are closed … again.

The picture for the rest of this year does not look any rosier. Consider data from Fidelity Investments’ 2022 Financial Resolutions Study. Surveys conducted in October 2021 found 39 percent of all working Americans intended to seek a new job in 2022. Among employed survey respondents who were between the ages of 18 and 24, 47 percent intended to change jobs. According to the study, “Aside from money, the reasons for seeking a change were largely values based, with stress levels, flexibility and ‘finding a job that better aligns with my personal values’ cited as top reasons.” In addition, millions of baby boomers are retiring earlier than expected.

Fueled by changing work-life priorities, the rapid spread of omicron and the outright lack of empathy from leaders, American workers across all generations are demanding employers do more to accommodate their most basic work-life needs. The challenge is that leaders at all types of organizations have failed to listen and respond meaningfully to employees. Hence, the Great Reset.

Employees’ Traditional Ties to Employers Have Weakened

As we enter year three of working in the COVID-created world, leaders nostalgic for the pre-pandemic mentality of viewing employees as fungible assets are destined to succumb to the swelling wave of exits that will likely continue through the first quarter of 2022. This raises the question of what human resources professionals can do.

Generally speaking, people stay in their jobs for three reasons:

• They need to stay,
• They feel obligated to stay, or
• They want to stay.

And to be fair, most employers are staying. At least for now.

With respect to needing to stay in a current position, however, higher wages, increasing job opportunities and the explosion of remote work options have reduced the financial and geographical handcuffs that traditionally kept employees bound to their jobs.

When it comes to feeling an obligation to an employer, the inability of leaders to empathize with and prioritize people’s needs has all but eliminated feelings of loyalty. Which brings us to staying with an organization because you want to.

The law of inertia applies to employment; it is always easier to stay in a job than to leave. Staying is particularly easy if you like the people you work with. Having a leader who supports you, a team you feel connected to and some sense of purpose in your work are even more powerful reasons to hold on to a job.

To create the conditions that make employees want to stay, leaders must evolve as coaches. Taking a coaching approach involves partnering with employees, co-exploring ideas and co-creating solutions. Great coaches, both at work and in sports, create resonant relationships with the people they coach. Those relationships strengthen as both individuals make meaningful connections and the coach seeks ways to support the other person’s desire for continued growth.

HR’s Role in Developing Coaches

When organizational leaders adopt a coaching approach, they genuinely get to know employees as human beings and establish more positive working environments. To realize these positive outcomes, HR professionals must be at the forefront of developing frontline supervisors, C-suite executives and others in leadership positions as coaches.

At a minimum, leaders who want to excel as coaches must know how to do the following three things.

Empathize to Understand

Empathy is key to success in a COVID-created world. You must be able to put yourself in the shoes of others if you want to lead them. The best way to do this is to take a coaching approach to conversations with direct reports.

To coach successfully, leaders must learn to ask employees questions about their work-life balance, explore whether barriers are impeding their work and connect with them on a personal level. In short, leaders must be human.

Flex to Meet Needs

Flexibility is now one of the greatest competitive advantages for retaining employees. Leaders must be thoughtful in making accommodations because the idea that one size fits all no longer flies in this on-demand, bespoke world.

Leaders must consider offering employees alternate hours, flex schedules, remote and hybrid work, changing roles, split duties, and priority for thinking time. Again, this is about taking a coaching approach. Leaders must co-explore options and co-create solutions that are for the people in collaboration with the people.

Break From Tradition

Organizations must constantly update their products, services and technologies. What about the employee experience?

Leaders must understand that introducing simple tangible offerings like free lunches and ping-pong tables is not the change people want to see. Research has shown employees want meaningful experiences and a positive connection to their work. This is not new information, but the pandemic has certainly brought people’s needs for purposeful work and strong interpersonal relationships into sharp focus.

As coaches, leaders must start engaging with employees in order to understand the kinds of work experiences that resonate with them. Stop worrying about fancy offices and plush playrooms. Those are played out. The world has changed.

After two grueling years and multiple traumatic waves of COVID-19, American workers are getting serious about rethinking their social contract with employers. Workers across all generations and most industries are flocking to new opportunities that provide them with a better work-life blend, increased flexibility and more meaningful connections with organizational leaders.

Stemming the swelling wave of resignations will require more than platinum benefits packages and giveaways. An overreliance on “fun” workplace perks is also a nonstarter. What weathering the Great Reset will require is empathetic leadership. This is why leaders at all levels must adopt a coaching approach to engaging with employees if they hope to thrive in 2022 and beyond.