Managing During a Pandemic: 5 Changes to Retain Employees

Contents:

• How the "global transition" is changing managers' approaches to management
• Tough management: a necessity or a mistake?
• What are the characteristics of a modern leader?

How the "Great Resignation" is Changing the Way Managers Manage

The term "Great Resignation", coined by Professor Anthony Klotz of Texas A&M University in May 2021 has become a symbol of significant changes in the labor market. According to Microsoft research, approximately 40% of workers worldwide are considering changing jobs. In the United States, 24 million people filed for resignation between April and September 2021, while in Russia this figure reached 2.66 million, the highest level since 2013. These data highlight a global trend of reassessing professional priorities and seeking better working conditions, which in turn affects the labor market and corporate strategies. Many employers are unaware of the true reasons for their employees' departures. A McKinsey study found that managers often cite insufficient salary and work-life balance issues as the main factors. However, for employees, there are more significant reasons. 54% of workers report a lack of value for their contributions, 52% point to a lack of recognition from management, and 51% feel a lack of involvement in their work. These aspects are important for creating a healthy and productive work environment, which in turn can reduce employee turnover and improve overall company performance.

Experts believe that the "great layoff" should be viewed as a "global transition" (Big Switch). Employees are not left without work, but rather seek more interesting or lucrative positions. In Russia, for example, many employees from retail and food service have moved to more attractive sectors, such as delivery services. This trend indicates a shift in the labor market, where professionals are seeking opportunities for career advancement and improved working conditions.

Digitalization has become a significant factor in changing corporate culture. Svetlana Chekmazova, head of the Corporate Culture practice at Korn Ferry in Russia, emphasizes that automation opens up opportunities for employees to retrain and improve their digital skills. This creates a need for employers to implement flexible management methodologies, such as Agile and Lean, which helps increase the competitiveness and adaptability of organizations in the modern environment.

Companies need to get creative to retain employees. Even traditional Wall Street banks have begun offering significant compensation, paid fitness programs, and short-term vacations. However, as Leysen Shayakhmetova, Managing Partner of Career Booster, emphasizes, financial incentives are no longer the only solution to attracting and retaining talented professionals. In an increasingly competitive labor market, companies must focus on creating an attractive corporate culture, opportunities for professional growth, and supporting work-life balance. Effective retention strategies include not only financial incentives but also development opportunities, flexible work schedules, and involvement in decision-making processes.

Modern professionals are increasingly refusing to tolerate toxic work environments and overtime. For women, support from management and a positive team atmosphere are especially important, sometimes outweighing financial benefits. A striking example is the HR director of one Russian company, who chose to spend more time with her children during the pandemic than work in the office. This case illustrates a growing trend among professionals seeking a more harmonious work-life balance.

Many companies have successfully adapted to changing labor market demands. For example, Walmart and Starbucks have implemented flexible work schedules, allowing them to attract more employees. Citigroup, under CEO Jane Fraser, offered its employees the opportunity to set their own work hours. This strategy made Citigroup a more attractive employer, which resulted in an increase in resumes from specialists at competing banks. Adaptation to new labor market conditions is becoming a key factor for successfully attracting and retaining talented employees.

In Russia, companies such as Skyeng and Aviasales is actively implementing corporate psychotherapy, demonstrating a growing focus on employee mental health. Sber also offers its employees the opportunity to take sabbaticals—unpaid leave for up to 12 months with a guaranteed job security. These initiatives highlight how the pandemic has changed employers' approach to the needs and well-being of their employees, potentially leading to increased productivity and reduced stress in the workplace. Attention to mental health and flexible work schedules is becoming an important component of a successful corporate culture in today's environment. Despite positive changes in management, many companies are still unprepared for this new approach. A significant number of organizations continue to use traditional management methods, which can contribute to the attrition of valuable employees. Adapting to modern management requirements is becoming critical for retaining talent and growing a business.

Tough Management: Necessity or Mistake?

Modern HR management is plagued by numerous paradoxes surrounding employee assessment. A 2021 study by Deloitte, a consulting company, reveals various interaction scenarios between employees and employers. One key aspect is the "Battle of Talent," in which 8–9 candidates compete for a single position. In such a competitive environment, many companies perceive employees as easily replaceable, viewing them simply as part of a complex mechanism. This necessitates reconsidering approaches to talent management and assessing their contribution, which can significantly impact business performance and employee engagement.

HR management within the mechanistic approach resembles a supply chain. This method was proposed by Frederick Taylor, who developed the scientific organization of work with an emphasis on maximizing efficiency. The basic principles of Taylorism include breaking down complex tasks into simpler components, carefully measuring employee performance, and rewarding the most productive employees while firing less effective ones. This approach ensures the systematization of processes and contributes to an increase in overall labor productivity, which makes it relevant today.

Modern Taylorism is clearly demonstrated by the company Amazon, Known for its strict approach to working conditions, the corporation uses high technology to monitor not only warehouse employees but also office workers, including managers. Despite stated intentions to improve working conditions and raise wages, Amazon continues to use methods based on Taylorist principles. This highlights not only the effectiveness of management but also the challenge of upholding workers' rights in a highly competitive and automated environment. Examples of digital Taylorism are also emerging in the Russian market. Xsolla founder Alexander Agapitov fired approximately 150 employees in 2021 due to low productivity, relying on data from tracking apps. This event sparked significant public outcry and condemnation from other organizations. The trend of using digital tools to monitor employee productivity is becoming increasingly relevant, raising questions about the morality of such management methods.

Dmitry Makhlin, Development Director at HRlink, argues that comprehensive employee monitoring is ineffective in a hybrid work environment. He emphasizes that many employees have begun to reorganize their time, identifying their most productive hours. In response to modern challenges, his company has implemented the Agile-lite methodology, which reduces the number of meetings and emphasizes specific, measurable goals. This approach promotes increased efficiency and improves team morale, which is especially important in a hybrid work environment.

While authoritarian management models still exist, Deloitte experts warn of the risks associated with this approach. By cutting costs on employee training and development, companies risk becoming vulnerable to unexpected situations, such as pandemics. A shortage of human resources can cause serious problems, as was observed with couriers during lockdowns. Companies that fail to invest in their employees may face difficulties adapting to changing market conditions and customer needs. This highlights the importance of a strategic approach to personnel development to ensure business resilience in uncertain times.

Many companies are abandoning strict management in favor of a more A humane approach is needed, which is associated with changing management priorities. RosExpert Senior Consultant Ilya Potapenko emphasizes that achieving business goals loses its value if they are achieved at the expense of deteriorating relationships within the team. Even highly productive managers can face dismissal due to a lack of emotional intelligence and inappropriate management methods. In today's business environment, the importance of emotional intelligence and well-established interpersonal relationships is becoming a key factor for the successful functioning of organizations.

What are the characteristics of a modern leader?

Modern approaches to management require abandoning outdated methods. According to Dmitry Makhlin of HRlink, traditional management models have lost their effectiveness. Top managers must shift to a partnership style that allows employees to freely share ideas and actively participate in the decision-making process. This approach helps create an atmosphere that ensures engagement and unlocks the potential of the team. The transition to more flexible and open management methods not only increases employee motivation but also contributes to improved overall company performance. It is important for managers to recognize the importance of team engagement in achieving the organization's strategic goals. Finding qualified specialists remains a crucial task for many companies. Leysen Shayakhmetova emphasizes that HR brand recognition is no longer a guarantee of attracting highly qualified candidates. Key factors are becoming the personal charisma of a manager and their ability to engage potential employees. Many employers mistakenly believe that a company's reputation will automatically attract job seekers. In practice, smaller companies offering interesting and innovative projects often prove more attractive to talented professionals. It is important to understand that employer attractiveness is formed not only by reputation but also by an individual approach to candidates and their professional interests. Research, including a McKinsey survey, shows that employee loyalty is low in today's labor market. This underscores the importance of developing a strong corporate culture. Svetlana Chekmazova emphasizes that employees' daily behavior influences the work environment. Maintaining a positive work ethic becomes especially challenging in a remote work environment. "Managers must remember that outstanding results are achieved through teamwork," she emphasizes. Building a cohesive team and fostering mutual understanding among employees can significantly improve productivity and job satisfaction.

Empathy is a key skill for modern managers. Vera Manevich, HR Director at Zarplata.ru, emphasizes that the ability to empathize with employees' emotional states helps create an atmosphere of engagement. Research confirms that a lack of empathy is one of the main reasons employees consider leaving a company. Remote work makes it especially difficult to assess the emotional state of colleagues, making empathy especially important in team management. Effective empathy not only helps retain talent but also improves overall productivity and employee satisfaction.

Svetlana Chekmazova notes that cross-functional teams are becoming increasingly important in today's environment. The pandemic has exposed the ineffectiveness of traditional hierarchical management structures. "Managers must reconsider their strategies and abandon outdated management models," she emphasizes. Adapting to new conditions and implementing flexible approaches are becoming key factors for successful management in organizations.

Modern leaders need to pay attention not only to their team but also to their own mental well-being. Vera Manevich emphasizes that managers must be resourceful and maintain interest in their work. Maintaining a balance between work and personal life is key. Maintaining mental health allows leaders to manage effectively, make informed decisions, and inspire employees to achieve shared goals. Taking care of themselves and their team helps create a productive atmosphere and strengthen corporate culture.

Ilya Potapenko emphasizes that modern leaders must develop self-management skills and adapt to change. He notes that flexibility and technological advancement are becoming key factors for achieving success in a rapidly changing world. These qualities help managers effectively respond to new challenges and utilize modern technologies to optimize processes.

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