The Surprising Reason Behind Retention and Attraction Woes

There are several reasons why there’s a retention and attraction problem at organizations: low compensation, subpar benefits, little career advancement, poor management, and personal health issues, to name a few.

But there’s an elephant in the room that organizations don’t want to acknowledge but is also hindering their ability to keep talent: unhappiness.

“That’s something that we don’t often talk about in HR and in our organization,” Tracy Powell, CEO of the Executive Coaching Institute for Minority Women LLC, said March 25 at SHRM Talent 2025 in Nashville.  

“We’re living in a time where there is so much going on,” she added. “People can’t process. People don’t have the skills, the tools, or the resources to process, and people are in a state of unhappiness.”

Unhappiness was already increasing before the pandemic, but the onset of COVID-19 — and the associated challenges — exacerbated the problem. Indeed, research has found that employee rates of depression, anxiety, and stress have been rising in recent years. And BambooHR’s Employee Happiness Index found that scores have generally fallen in the past three years.  

The question for HR leaders: How can, and should, they approach the issue of unhappiness?

“We have to address it,” Powell said. “We have to work with our community to identify what causes people to be unhappy. But we also have to create a workforce and a workplace that fuels on happiness.”

One of the most important things for organizations to do is to be self-reflective and make sure they are creating a welcoming environment in which employees can be open about any struggles they are experiencing. Also, HR and managers need to practice wellness and address stress and unhappiness themselves so they can be their best selves for their workforce.

For instance, if a worker comes in to talk about HR about an issue that’s important to her, and the HR manager is in a bad mood or doesn’t empathize or help, that is not going to make employees feel happy or seen, Powell said.

Employers, especially managers, need to check in with their employees and ask them how they are — not just about their work, but also about their personal lives.  

“Be able to recognize when they’re sad or when something is going on. It’s not always about work, it’s about the person,” Powell said. “Sometimes people are not worried about money, but respect means more. Someone’s saying ‘Hi’ and acknowledging them, someone’s saying ‘Thank you’ to them, someone asking how they’re doing, checking on their family and being engaged, that means more to them than compensation.”

Company and HR leaders should also look for signs of unhappy workers, such as people practicing unhealthy habits, complaining often, having outbursts, or sending aggressive emails.

Assessing Well-Being

Organizations can also help employees — and themselves — assess their well-being. Have them ask questions such as: Do you feel valued and appreciated at work? Do you sleep well? Do you use wellness programs or self-care activities? Can you manage your workload without significant stress?

Powell also told attendees to think about, and identify, the things that help them reduce stress, so when they are overwhelmed, they can practice those methods. HR leaders should also encourage workers to do that for themselves as well. “If your team members are overwhelmed, or you’re working with the new recruits, and they come in tense, you can ask them, ‘How do you relax? What is relaxing for you?’ Simple questions that really make a difference can eliminate the negative talk and keep them happy.” 

Powell said HR managers need to realize they are at the forefront of promoting employee happiness and well-being.

“We have to think about where we’re empowering the workforce for success. We have to acknowledge the truth. The truth is it starts with you. You are the frontline. You are your organization,” she said. “If you’re not balanced, if you’re not feeling well, your organization is not going to feel well. Healthy organizations retain healthy people and employees. So give people a reason to stay. Be happy, be engaging, show people respect, show people that they matter, let them know that they that you care about them, and let them know that you want them in your organization.”