Can’t We Just Pay Everyone More?

Need a Culture Boost?: Building Extraordinary and Adaptive Cultures Course Available Now!

Belongify is here! Check out the new website, and let us know what you think!

What It’s About: I was listening to an administrator at a U.S. hospital, expressing dismay at unprecedented nurse turnover despite offering “rich” stay bonuses, 50 percent increases in shift work pay, and overtime dollars. Instead of appreciation and understanding, the nurses got more money thrown into the transaction. It backfired because it simply reinforced what nurses already knew - management preferred to buy them off rather than deeply listen to their concerns, and address the flawed fundamentals underlying the health care business that the pandemic has so painfully exposed.

So What?: According to a recently published McKinsey study, “more than 15 million US workers—and counting—have quit their jobs since April 2021, a record pace disrupting businesses everywhere… At the industry level, 42 percent of healthcare and social-assistance workers who quit did so without having a new job—a reminder of the pandemic’s toll on frontline workers. One-quarter of white-collar employees who quit said they had done so without having a job lined up, a finding that held across income levels.” This is a serious matter for employers and consumers. Service is flat out being negatively impacted. However, the underlying story is that transaction based remedies are not sufficient to turn this trend around. Of course, people want more pay and better benefits, however that is NOT the single lane highway to turn this trend around.

Now What?: Mckinsey's research suggests that executives aren’t listening to their people nearly enough. As the authors note, you can’t fix what you don’t understand, and they pose some questions that top leadership needs to ask and REALLY listen:

Do we shelter toxic leaders?

Do we have the right people in the right places (especially managers)?

How strong was our culture before the pandemic?

Is our work environment transactional?

Are our benefits aligned with employee priorities?

Employees want career paths and development opportunities. Can we provide it?

How are we building a sense of community?

I think this situation is great for executive leaders paying attention to culture and leadership. Those that see people as the primary expense line on the income statement and/or those that cynically think throwing money at the problem is the answer, will find themselves struggling to attract and retain people. Which one are you going to be?

Think Big, Start Small, Act Now,

- Lorne

One Millennial View: It seems to be a lack of purpose and passion. Nursing is a really good example. It’s hard, and perhaps more difficult than advertised. Oops, you didn’t realize there was a lot of $#it involved, literally and figuratively. This applies to plenty of occupations. You have to WANT to do it. Same should go for anything we’re professionally involved with. Hire people who would hypothetically do what they do for free. The correct payment follows. Do NOT make it more attractive to quit, stay home and collect unemployment. Part of the paycheck should be self-fulfilment.

- Garrett

Edited and published by Garrett Rubis

Can’t We Just Pay Everyone More?

Search Blog Posts:

Follow Us: