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Mass resignations – how can businesses recover?

Losing one key employee can be a real headache for an employer. But losing a whole raft of trusted senior staff at the same time can result in a period of significant instability, both immediate and longer-term, no matter how quickly a company is able to fill the empty positions.

Losing one key employee can be a real headache for an employer.

But losing a whole raft of trusted senior staff at the same time can result in a period of significant instability, both immediate and longer-term, no matter how quickly a company is able to fill the empty positions.

With 50 resignations – to date – including two cabinet ministers, the Prime Minister is certainly feeling this pressure right now.

However, he is in a fairly unique position in that the pool of senior ministers to choose from to fill cabinet roles is large. Therefore, amidst a major reshuffle, with key players in responding to the nation’s live pressing challenges walking out, the Prime Minister is immediately able to replace a post and expect the new cabinet member to hit the ground running.

Kate Palmer, HR Advice & Consultancy Director at Peninsula, says “Usually, employers will have some notice of the departure of senior staff because of well-constructed contractual notice periods. This time can be used to find a suitable replacement, but recruitment is rarely as straightforward as that.

“When a senior employee hands in their resignation, you don’t simply lose a pair of hands. You lose the idea-maker, the problem-solver, the innovator, the confidante; all things that an employer can come to rely on and often, dare it be said, take for granted.

“One resignation can be bad enough for these reasons, but when several come at once it can be catastrophic to operations.

“Employers would be sensible to put some effort into succession planning for key roles, even during times when your staff seem fully engaged. Ultimately, there could be unforeseen circumstances that may lead your staff to leave a role.

“Undertaking success planning is not a sign that you want the incumbent to leave; it’s an acknowledgement that they do their job well and their skills would be missed to the extent that you need someone to step up, when required, to minimise the disruption caused by their departure.

“Public resignation letters are a rare occurrence in business – but not unheard of. When these are released to the public domain, detailing the reason for the resignation, they can erode consumer confidence in a business at a time when the importance of ethics and ‘doing the right thing’ is a top priority.

“The best way to ultimately avoid high-profile, mass resignation is by contributing towards improved satisfaction and morale. Just a few ways to do this include championing open communication and shared values, investing into an employee’s professional development, and providing provisions for mental health and emotional wellbeing support.

“It’s also important for senior leadership to look at the reasons behind the resignations, what is driving them and if further change is needed to secure the company.

“Sometimes it is possible for a company to survive mass resignations without change at the top but, more often, if it becomes clear that a leader’s position has become untenable then the best thing to do is part ways. Bringing in new leadership can often be the easiest way for a company to steady a ship and restore customer, employee, and stakeholder confidence in the future of the business.”

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