Executive Summary: The Great Resignation disrupted workforces across industries, with many talented employees leaving their roles in pursuit of better opportunities. However, with this event in the rearview mirror we can recognize that this phenomenon was not limited to rank-and-file workers – Deloitte’s research reveals that a staggering 70% of C-suite executives also considered quitting for jobs that better supported their well-being. As the war for top talent intensifies, organizations must prioritize holistic wellness initiatives to attract and retain exceptional leadership. This article explores the drivers behind executive dissatisfaction, the critical role of well-being in retention, and strategies for fostering an environment where leaders can thrive.

The Great Resignation and the Role of Well-Being in Executive Retention

The Great Resignation and Executives

The Great Resignation has been a seismic shift in the labor market, with millions of employees voluntarily leaving their jobs since 2021. While much attention has focused on resignations among hourly and salaried workers, Deloitte’s findings underscore that even those at the highest levels of leadership are feeling the pull to seek out greener pastures.

Some key factors contributing to executive discontentment include:

• Burnout from the pandemic: 76% of the C-suite reported that COVID-19 negatively impacted their well-being through increased stress, longer hours, and lack of work-life balance.
• Always-on work culture: With the boundaries between work and home blurring, executives struggle to disconnect, with 73% saying they can’t fully unplug from their jobs.
• Lack of self-care: Only around two-thirds of executives use all their vacation time, get enough sleep, and have time for loved ones.
• Misalignment on well-being priorities: Many executives feel their own organization’s well-being efforts are inadequate, disconnected from employee needs.

As a result, 70% of the C-suite is actively looking to jump ship for roles that provide better work-life integration and support for their holistic health.

Well-Being as a Key Factor in Executive Retention

In today’s climate where exceptional leadership is highly valued, well-being programs and accommodations are becoming key determinants of an organization’s ability to attract and keep top executive talent.

Executives who feel supported in prioritizing activities like taking time off, maintaining work-life boundaries, caring for their mental health, and managing chronic conditions report higher job satisfaction. In contrast, sacrificing one’s well-being for the sake of the job drives up burnout, stress, and disengagement – ultimately resulting in turnover.

An authentically well-being centric culture enables executives to lead by example for their teams while also reaping personal benefits. This win-win scenario boosts individual, team, and organizational performance while positioning a company as an employer of choice for leadership talent.

Impact of Executive Turnover

When a senior leader leaves, it creates significant disruptions and costs:

• Loss of institutional knowledge: Replacing an executive’s experience and insight requires extensive onboarding and knowledge transfer.
• Operational gaps: Day-to-day operations and strategic initiatives may stall or lose momentum during transitions.
• Talent drain: Top performers and teams may follow a respected leader out the door.
• Hiring and opportunity costs: Hiring a new executive is costly, not just financially but in terms of productivity sacrificed while the role is vacant.

Beyond concrete ROI impacts, high leadership turnover damages company culture, undermines stakeholder confidence, and puts the entire organization at risk if left unaddressed.

Strategies for Retention

To retain their brightest executive talent, forward-thinking organizations should:

Actively listen and gather feedback: Understand leadership needs through surveys, focus groups, and open dialogue.

Revamp time off/flexibility policies: Implement minimum vacation requirements and remote/hybrid work models that enable leaders to recharge.

Expand well-being support: Provide access to coaching, therapy, health services, fitness facilities, and incentives promoting self-care.

Lead by example: Model work-life balance and normalize prioritizing wellness from the C-suite level.

Reset cultural norms: Create spaces for vulnerability, dismantle notions of “powering through” and prioritize sustainable performance.

Track key metrics: Monitor leadership engagement, turnover rates, and well-being scoring to identify areas for improvement proactively.

The investment in well-being not only fortifies executive resilience and longevity but also signals a powerful commitment to people-first values that leaders increasingly seek.

Summary

While much attention has focused on the Great Resignation’s impact on frontline workers, organizations are also at risk of losing invaluable executive talent if well-being needs go unmet. In a demanding climate where leadership is paramount, well-being support and cultural prioritization become key drivers of recruitment and retention at the highest levels. Fostering an authentic culture of care through robust initiatives, progressive policies, leading by example, and proactive feedback enables organizations to attract and keep purpose-driven leaders who can unlock outsized returns while also thriving holistically themselves. Through these efforts, companies position themselves as employers of choice and safeguard their ability to execute on their most ambitious visions.

Sam Palazzolo, Principal Officer @ The Javelin Institute

Reference: Fisher, J., & Silverglate, P. H. (2022, June 22). The C-suite’s role in well-being. Deloitte Insights. https://www2.deloitte.com/us/en/insights/topics/leadership/employee-wellness-in-the-corporate-workplace.html