A 2022 global study by Deloitte found that 70% of Executives are seriously considering leaving their current role for one that better supports their wellbeing. Fifty six percent of the those Executives have done it before and 82% would be more likely to stay with their organisation if it better supported their wellbeing.
Ever since the global pandemic we’re seeing a shift in Leadership retention. Post pandemic we talked about the great resignation which seems to have come to an end, but not the impacts. The fact that such a major event led many of us to an epiphany about what’s important in life has led to many of us reconsidering our working hours or career choices. Whilst the great resignation might be over according to economists we’re still seeing leaders leave, especially women. Why?
Whether it’s the pandemic, the weather events, pivoting, change, uncertainty, economic issues, restructuring, team engagement, talent retention, hybrid working, recruitment difficulties, staff shortages, empathy fatigue or burnout it’s a very long list that continues to weigh heavy on our leaders and of course even heavier if those leaders are also from under represented groups.
Not only have we gone through the last few years ourselves, we’ve had to carry others through it too, our teams, our families and each other. We’re at the forefront of responding to crisis but often last on the list when it comes to support and care. Quite simply we’re often too busy doing it for others to stop and apply the same rules for each other.
Burnout is on the rise and there’s two categories in which McKinsey tell us the stats (which have increased across the board post pandemic) get higher still – that’s gender (43% of women leaders are burned out compared to 31% of men) and senior leadership (leaders burn out at a higher rate than others).
There’s also been a shift towards changing the traditional model of working full time without a break. Not just brought about by burnout but changing priorities and more opportunities to do things differently. Whether it’s sabbaticals, early retirement, part time work or starting your own business. We’re seeing leaders seriously look at options that only a few years ago were uncommon.
Increased flexibility and choices and non traditional ways of working has opened up many options for leaders who want more in life. Often at the peak of their career they have the skills and experience to have many more choices. They also often have the financial stability to rethink some of those choices. I want to go part time and spend more time with the kids. I want to start my own business to gain more freedom and flexibility. I want to work for a non profit that aligns to my values and passions. We’re focused on leaving a legacy and making a life these days far more than just earning a living.
Because of these increased choices and realigning to what’s important we’re less likely to stand for mistreatment, toxic cultures and being overworked. Not just when there’s other options at play but as senior leaders we’ve generally gained a lot of knowledge and experience on our way up the career ladder that allows us to know what we stand for (and what we don’t).
Unfortunately there’s also issues like burnout, ill health and menopause that’s having us rethink our leadership tenure. Sometimes forcing ourselves out of the workplace altogether or making options like sabbaticals more tenable. For some it’s becoming their own boss that is seen as the solution and for those at and age and financial position where early retirement is an option we’re seeing this play out too.
Much of this impacts women more so than men. My friend and leadership expert Kate Billing mentioned recently that based on anecdotal evidence from New Zealand organisations since the beginning of 2022, female senior leaders are resigning in roughly twice the numbers of their male counterparts, often citing wellbeing.
We’re now seeing higher numbers of women resigning to start up their own businesses with a recent 40% increase reported. Not only are we losing talent but we’re also losing diversity with these uneven numbers and increased pressure on female executives.
All of this is important because as with any turnover spike it tends to be the talent that goes first, it becomes harder to attract diverse talent if you’re losing it out of the other door. Not to mention the knowledge, skills and organisational consistency impacts too. We also know when the world is turned on its head and people start to reassess their options it’s those on higher salaries that always have the most options to chose from. Add to that the age and stage of many of our C Suite and it often coincides with mortgages being paid off, kids leaving home and elderly parents passing on. Life opens up in a way that spending all our hours at work no longer seems to fit with.
Unless of course that work (and the organisation we do it for), lights us up, fills our bucket, gives us a sense of meaning and purpose. Allows us the autonomy to grow with the support to stretch and respond to challenge. A sense of achievement with the recognition to go with it. Working in a way that supports our wellbeing and mental health not detracts from it. For people we care about, a work family, that makes it worth leaving our actual family for a few days a week.
So what can we do to ensure we’re not losing so many of our top executives? From the work that I do and feedback from leaders I train and coach here’s a few top tips.
· Invest in leadership development (continuously not just once early in someone’s role)
· Make wellness a priority for everyone, especially your senior leaders
· Walk the talk and role model the kind of behaviour that makes people want to stay
· Be aware of the challenges your leadership team faces and how best to navigate those
· Improve diversity, equity and inclusion in your leadership team
· Nurture your existing leaders
· Support emerging leaders
· Consider how your environment contributes to the solution or the problem
· Allow flexibility and breathing space in the schedules of your leadership team
· Assess the priorities and refocus to ensure people are not spread too thin
· Address concerns and have the tough conversations
Need a hand with any of that? Tap into my decade of HR and Leadership Development experience and get in touch for facilitated sessions, workshops and leadership retreats for your team.