“THE BIG QUIT” has arrived at agencies everywhere. And here’s what you need to be doing about it.
A tectonic shift is already happening in the American workplace which will only become even more pronounced during 2022.
For almost two years and counting, employees throughout the country have been enduring the uncertainty and intense pressure created by COVID-19 (and its current re-escalation via the omicron variant). They’ve been forced to adapt to working from home, navigate through vaccinations and lockdowns, deal with so many people dying and more.
Combining these factors with the passion and purpose of Younger Millennials and Gen Z (which collectively make up a huge portion of the workforce), people are taking a new look at where they are in their lives today, reevaluating the role of work and searching for more.
At Prosper Group, we’re seeing an increasing number of employees who have started to fight back against these pressures. They want something better. They’re more vocal about making it happen. They want it now. And millions of them nationwide are leaving their jobs every month if they’re not getting it.
We call this “The Big Quit”. It’s real. It’s here. It will affect all agencies.
This is the first of two articles which include our thoughts on what agency owners can do about this.
What agency owners and leaders should be doing now (if you aren’t already).
To summarize what we believe you need to do:
1. Understand that “The Big Quit” is real, fundamental and isn’t going away any time soon.
2. Align your firm’s purpose more closely with your employees’ personal goals and values.
3. Be more flexible. Become more thoughtful, creative and agile in providing your people with what they want most.
4. Focus on employee well-being.
5. Also focus on your own well-being.
6. Talk less and listen more. In particular, learn to listen more effectively.
7. Finally, dial up the empathy throughout your agency. From management to staff. From each person to others. From you personally to everyone.
Today in this article, we’ll dive into the details of the first two of these points.
“The Big Quit” will affect all agencies. Yes, yours too. Here are the numbers.
Bloomberg Business Week predicts that 30% of employees... almost one out of every three… will leave their jobs for greater flexibility and to add more meaning to their professional lives. Not for more money. Not for a better title. For enrichment and growth as a person. Just think about that for a few minutes.
This prediction is supported by Microsoft’s study last spring which found that 40% of workers are contemplating leaving their jobs. Despite the continued uncertainties of COVID (now escalating once again), an estimated 4,167,000 employees (2.8% of the entire workforce) quit in the month of October, 2021 alone. (U.S. Bureau of Labor Statistics)
Even more stunningly, Inc. magazine reported in 2021 that 63% of marketing professionals were contemplating a job change within a year.
This is bad news for agency owners.
More than most industries, marketing communications agencies depend almost completely upon the talent, experience and tenure of their people.
Higher turnover detracts from the firm’s knowledge base. It erodes the continuity, trust, confidence and efficiency which are all critical to creating and sustaining effective, lasting relationships with clients.
Turnover is very expensive as well. Per United Minds, the cost of replacement can range from 50% to 250% of an employee’s annual salary.
Turnover also drains the agency’s pool of candidates for future top management positions. McKinsey & Co. has found that Millennials (now in their forties) are three times more likely than others to say they’re reevaluating work.
Today’s Job #1 for agency owners? Focus on your firm’s PURPOSE.
Your purpose is your critically important WHY. The essence of why your agency exists. Why you do what you do. Why the best people choose to work there.
As an agency owner, your firm’s purpose can deliver more positive impact than almost anything else you can do. It can become your most distinctive and strongest competitive advantage.
And the out-of-pocket cost is zero.
“Purpose” is not remotely some kind of touchy-feely idea or “here today/gone tomorrow” business fad. It’s real and it’s important. Forbes defines purpose as “… a belief that your life matters and that you make a difference… a reason for being… a reason to wake up in the morning”. What’s more important than that?
Forbes also points out that a) people are most engaged in work when the mission and values of the organization matter to them and b) when they feel they can make a contribution to the bigger picture.
More than ever, people want to work for companies that stand for something. Companies which allow them “to merge their personal passions with their work passions”. (Barri Rafferty, Executive Vice President, Wells Fargo)
McKinsey & Co. studies show that people who live their purpose at work are more productive than those who don’t. They’re healthier, more resilient and more likely to stay at the company. When employees feel their personal purpose is aligned with the organization’s purpose, it drives stronger employee engagement, heightened loyalty and a greater willingness to recommend the company to others.
According to leading executive placement firm Robert Half, 71% of employees say they would leave a company whose values don’t align with their own.
So, again, what’s your WHY? Is it as clear and compelling as it can be?
How to make your Purpose stronger.
Here’s what McKinsey & Co. and Forbes recommend as actions for agency owners to be taking today to retain the best people and keep moving forward in this exceptionally challenging environment:
1. Clarify your firm’s purpose.
2. Articulate it effectively, again and again.
3. Help your people live their purpose at work.
4. Use purpose for making decisions.
5. Stay nimble.
At Prosper Group, we have the experience to help you do any or all of these things more effectively.
Prosper Group is here to help you succeed.
We exist to help the owners of independent marketing communications agencies achieve their ambitions and maximize the value of their life's work.
Our team of former agency leaders and owners focus their deep experience on implementing proven proprietary methodologies across our three practices of agency performance (including leadership coaching), owner exit planning and M&A transactions in order to drive owner and agency success.