The Great Resignation. It’s a phrase that’s been on the tip of everyone’s tongue lately. But what, exactly, is the Great Resignation? And, why are people quitting their jobs in droves?
According to the Bureau of Labor Statistics, 4 million Americans quit their jobs in July 2021. Resignations have been increasing at a record pace for the past several months, with 10.9 million open occupations as of the end of July.
A recent survey of 25,000 employees by the job-search site Joblist showed 22% of all job seekers reported quitting their previous job, and 73% of currently employed workers said they are actively thinking about quitting their jobs.
The highest increase in resignation rates occurred among employees aged 30 to 45, with an average rise of more than 20% from 2020 to 2021. While turnover is generally greatest among younger workers, a study by HBR revealed that resignations decreased for people in the 20 to 25 age group over the last year (most likely due to a mix of their increased financial uncertainty and reduced demand for entry-level employees).
What is The Great Resignation
In short, it’s the mass exodus of employees from their jobs. The Great Resignation reflects a deep dissatisfaction with previous employment situations. The ongoing global pandemic has enabled workers to rethink their careers, work/life balance, long-term goals, and working conditions.
Workers are realizing that they can’t just go through the motions anymore – that they need to find work that is fulfilling both mentally and financially. They’re also beginning to understand the importance of maintaining a good work/life balance in order to avoid burnout.
That’s why we’re seeing such a high number of employees quitting their jobs. They want to find work that will make them happy and allow them to live a balanced life. And they don’t want to wait until the pandemic is over to do it.
What Is Driving The Great Resignation
The Great Resignation is being driven by a number of different factors, including the following:
- The global pandemic has given workers the opportunity to rethink their careers, work/life balance, long-term goals, and working conditions.
- Workers are dissatisfied with the current state of the economy and the job market.
- They’re tired of feeling overworked and underpaid.
- They want to find work that is fulfilling both mentally and financially.
- They want to work for companies that value work/life balance and are committed to helping their employees live a balanced life.
The pandemic has clearly influenced individuals’ job choices. Nearly one-quarter of workers (24%) say they would not have left their previous position if the pandemic hadn’t struck, and one-third of employees conclude that the pandemic compelled them to stay in their last employment for either a longer or shorter period of time than they otherwise would have done.
Women are more likely than males to state that the pandemic kept them at their previous position for a longer period of time (19% of women compared to 14% of males).
What Employers Can Do About The Great Resignation
Companies of all types should be aware of the Great Resignation and its potential consequences. Retaining personnel may become much more difficult. Workers might begin asking questions about benefits or pay.
It’s preferable to be prepared when responding to these inquiries since it indicates that you’re considering the impact of staff leaving their jobs.
Employers can address the Great Resignation by taking the following steps:
– Flexible Work Location
Employers must recognize the value of work/life balance and attempt to provide employees with a life that is balanced. This is a step in the right direction, but the policy should be more flexible than just working from home. For example, the company could allow staggered start and end times so that workers can have time for the morning commute or the evening rush hour.
Employees also need the ability to take time off when necessary. If someone has to stay home with a sick family member, they shouldn’t have to use vacation days or PTO hours. They should be able to take unpaid leave if needed.
– Paid Time Off
It’s important that employers offer paid time off (PTO) hours as well as sick days. Too often, workers are penalized for taking time off to deal with personal or family matters. PTO hours should be available for any reason, not just illness.
– Unlimited Vacation
Provide employees with unlimited vacation days. This sends the message that you trust them to take the time they need without worrying about their job security. It also allows workers to take a break when they feel overwhelmed or stressed out.
– Flexible Work Hours
Offer employees the ability to work from home or remotely if possible. This flexibility gives employees the freedom to balance their work with their personal lives. They don’t have to worry about missing important family events or dealing with rush-hour traffic.
– Gym Membership
Many employers offer gym memberships as a perk to their employees. This is a great way to encourage employees to stay healthy and take some time for themselves.
– Flexible Working Arrangements
In order to keep the best employees, companies need to offer flexible working arrangements. This could mean working from home occasionally, taking a break during the day to run errands, or leaving work early one day a week to take care of personal business. Some employers are already offering these options, but they need to be the norm instead of the exception.
– Treat Those Who Leave With Kindness
Whether you want it or not, some workers will leave. In the business world, employee turnover is common. However, you don’t want to treat them poorly on the way out.
Remember, the way you treat workers when they leave will reflect on the company’s brand. If you’re nasty to them, they’ll tell their friends and family about it. This can lead to a negative reputation for your business.
Be sure to say goodbye and thank them for their contributions while at the company. You may also want to offer them help finding a new job. Workers who are treated well after leaving are more likely to refer others to your company in the future.
– Communicate With Staff Continuously
It’s important that you maintain an open line of communication with staff members during the pandemic and beyond. This means being available through various channels such as email, IM, or in-person meetings.
Be sure to keep everyone updated on the company’s plans and how the pandemic is affecting operations. Staff will appreciate the transparency and feel more confident about the future of the business.
Overall, the most common reasons cited by workers wanting to leave their jobs are low earnings or lack of benefits, as well as negative employer attitudes during the pandemic.
The ultimate objective during this trying period is to keep cool, accept employee feedback, and use it to transform your company model, benefits package, or pay rates if necessary.