“The Great Resignation” has become a pandemic catch phrase, but maybe not in the way you think. Yes, employees are voting with their feet more so than at any other time in recent history, leaving their current jobs in droves to chase better pay, better working conditions, better opportunity and a better life. But for me, the “great resignation” is about companies being hopelessly resigned to ignoring the current situation and living in the past, waiting for the “old normal” to return.
In the course of my professional career I’ve changed, adapted, learned from mistakes and grown. But most companies have not embraced change, whether it be initiated by internal or external forces. Why is it that rather than address the short- and long-term implications of the pandemic, businesses fight to keep to old models and practices? Whether it be viewed as forced change or a paradigm-shifting opportunity, the issues brought to the forefront of business operations today by the pandemic cannot and should not be ignored.
Waiting for a Return to “Normal”
In the last two years, we’ve all seen stores, restaurants, sport leagues and the entertainment industry at all levels having to change and, in some cases, re-invent themselves. Yet, amongst all of this upheaval while we’re in the midst of one of the greatest socio-economic disruptions in recent history, there’s a rush in corporations to get back to “normal,” to the way things were.
Yet, their customer base has changed. The ways in which people shop have changed. Their employees have changed, going from daily commutes and office cubicles to staying at home and zoom meetings. From supply chain failures and unprecedented retail price hikes, to an inability to hire and retain staff, especially in low wages jobs, it’s a new world all around us. Still, over the past two years, corporations have fought hard to keep operations as they’ve always been.
As a communications and business professional, my level of frustration is at an all-time high. My hope for a better future is at an all-time low.
Breaking Down Walls
Several years ago, I was a consultant to the merger of two large health insurance companies. It was an exciting time—two disparate cultures coming together, the launch of a new company, new brand and new vision.
In their new headquarters, the offices of the HR Director and the Director of Marketing were literally next to each other. Yet, neither director spoke nor otherwise interacted with the other. Consumed with all of the challenges of, in effect, rolling out a new business, there was no effort to coordinate or complement messaging between these two groups…that is, until we introduced the executives to each other and explained the cost and cultural benefits of working together. It was an epiphany to those involved. Really, it was just common sense.
Not So Common Sense
Back in the 1700s, the French philosopher Voltaire is credited with saying, “Common sense is not so common.” Yet here we are, centuries later and common sense still loses out in the marketplace. Silos within larger businesses still reign supreme. They are so common, but no longer make any sense.
Not convinced? Look at the job titles posted on recruiting websites. Chief Communications Officer. Public Relations Officer. Corporate Communications Officer. Director of Marketing. Director of Branding. Director of Shareholder Communications. Silos, and the power they afford the individual in that seat, remain entrenched in corporate culture but don’t reflect realities in today’s marketplace.
Let’s look at one group—employees. They are a core target group for corporate messaging. But employers fail to fully realize and address the fact that a typical employee is also a customer, a member of the community along with their family members, and in many cases, a shareholder in some manner. Still, there is little or no coordination of messaging between HR, Marketing, PR and Shareholder Services. Silos are outdated. Now is the time for change—meaningful change.
Challenging Business Landscape
Businesses are facing difficult and challenging times. Employees are demanding higher pay to at least keep pace with higher costs of living and to reduce the chasm between worker and manager/executive pay growth. They are looking for fair compensation for longer hours and, in many cases, more dangerous working conditions due to Covid and fewer co-workers. And they’re looking for more profit-sharing programs so that the average worker, not just management, can benefit from corporate success.
But all of these cost pressures can translate to reduced net profits, which shareholders do not appreciate. To make up for any or all of these factors, prices tend to increase, which can also fuel inflation pressures. And many companies turn to their risk management professionals, looking for ways to reduce costs, even at the expense of reduced quality. Trapped in their silos, businesses are blind to the effects these changes have on other aspects of the business.
Reacting to Change
To save on costs, some companies shift production outside of the U.S. in order to take advantage of lower pay, as well as lower materials and production costs. Such a move often comes with reduced quality—a trade-off the risk management gurus take into account. But reduced quality, meaning a greater number of parts which get to the consumer are imperfect, don’t fit or don’t work, translates in higher costs for returns and an increase in customer support calls.
Yet, these customer-facing departments aren’t getting needed increases in budget, training or staffing. The result…more frustration from the trades which use these products, an increase in installation time and costs passed on to consumers, do-it-yourselfers wondering how to deal with the new problems with no satisfying solutions as call centers are handling more calls from more angry customers.
So, if all of these factors are inter-related, then why aren’t the structures behind the business also inter-related, if not fully integrated?
Shaping and Steering Change
Change is not easy and, often, it doesn’t come without short-term costs. But if we’re to address the change all around us and not only be ready for the “new normal” but help to shape and define it, then changes in how corporations are structured and operate are required. And those changes, including their short- and long-term costs and benefits, must be communicated to all parties so that each segment—employees, management, consumers, shareholders and community—can make informed and effective decisions. Otherwise, what we are experiencing today will be the new normal and all will suffer financially, emotionally and health-wise for decades to come.