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5 Ways to Beat The Great Resignation
The data is in and The Great Resignation is real, with an outsized effect on the tech industry. According to Harvard Business Review, resignations within the technology industry are 4.5% higher than they were a year ago. Moreover, 27% of venture capital firms, corporate venture capital firms and private equity firms have lost a partner or key recruit in 2021 according to a survey conducted by J.Thelander Consulting.
While some of this surge is likely driven by pent up resignations that were put off during a time of uncertainty, it's probably fair to say that the future of work is here. This is a golden opportunity for early to mid-stage companies to wield their nimbleness and come out ahead.
1. Remote work is a must. So who's making accommodations for remote / hybrid work arrangements? Big tech: Apple, Amazon and Twitter. Big-but-still-emerging tech: Shopify, Reddit and Slack. Legacy: Capital One, Ford and Nationwide Insurance. Remote is basically table stakes and if you're against it, you're simply on the wrong side of history.
2. Invest in employee wellness. While remote work is a must, it also presents its challenges - not just to the organization but to the individual. Buffer's 2020 State of Remote Work report cited loneliness, not being able to unplug and staying motivated as headwinds associated with remote work. In order to maintain a sustainable and productive remote work environment, employers must invest in mental wellness programs. With companies like Spring Health, Lyra Health and Modern Health leading the way, there are plenty of options to choose from.
3. Develop internal talent. Ever notice that sales — not retention — gets all the attention? This, despite the fact that anyone who has built a tech business knows that multiples aren't built on sales, they're built on retention. Same applies for your employees. Instead of putting all your attention into hiring new talent, develop the people you already have on the team. To boot, upskilling is more important than ever with the cultural shift towards remote work as we don't work the way we used to. Invest now.
4. Establish a scalable equity program. Early stage companies too often see equity as a one-and-done deal, strictly for new hires (with extra attention paid to the executive team). Kudos to Wealthfront, who published a progressive equity plan back in 2013. It's worth a read for any early to mid-stage founder, but in short they identify four instances to grant equity: 1) new hire, 2) promotion, 3) outstanding performance and 4) evergreen. Done right, this is a great way to combat unwanted turnover.
5. Communicate early and often. A remote workforce means no more accidental run-ins at the proverbial water cooler. While it's difficult to quantify the value of these run-ins, ranging from idea exchange to friendship building, the absence of face-to-face human interaction is real. Of course communication platforms like Slack and Zoom are part of the answer, but tools aren't a substitute for strategy. We aren't going to solve this one here, but for tips perhaps study the habits of these 50 remote-first companies for strategies you can consider at your company.
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