[Source – www.dssmd.com]
Do you know that from April 2020 to March 2022, 3% of the workforce has exited their jobs? This movement was called the “Great Resignation.” It caused many people to stay home for a long time and refocus on what’s important in life. Now, you must be wondering what this whole movement was all about? In this article, we will learn what it is, the causes, advantages, stats and the impact it left on the world.
What Is Great Resignation?
The Great Resignation is the increase in the resignation rate of employees in early 2021. The resignation rate initially declined in the COVID era, but post-COVID, it surged like never before. The term was coined by Anthony Klotz, a professor of business administration at Texas A&M University in May 2021. He first used the term while quoting in a Bloomberg Businessweek Article in May 2021. He said in the article that a mass exodus, the Great Resignation as he referred to it, was coming. His forecast turned out to be true.
Key Causes of Great Resignation:
[Source-economictimes.indiatimes.com]
While describing the general resignations, we could say that the main reason for resigning or quitting the job lay in personal situations. The process slowed because people delayed the decision-making due to the arrival of COVID-19. The voluntary segregation from jobs for reasons other than retirement decreased steeply from 2.3% in February to 1.6% in April 2020.
The trend turned upside down when the Job Openings and Labour Turnover Survey (JOLTS) by the U.S. Often when the employee quits a job; he gets hired by another firm with better benefits. In some scenarios, when the employee wants to start a firm or business, this kind of resignation gets delayed. These resignations proceeded when the lockdown was lifted due to the arrival of vaccines. Sometimes, it is also preceded by quiet quitting.
Some people also said that the reasons for the rise in quitting rate might be due to
- The pandemic might get people to think about their life priorities and make them reduce their work hours or leave their work life entirely.
- Employers ordered the employees to return to the office after permitting remote work in 2020.
- Mistreatment by employers and customers during the pandemic pushed employees to leave for other options.
- Some people left work because they couldn’t get childcare support as schools shifted to remote learning. Some others left the work because they couldn’t get on with Covid-19 vaccination requirements.
- Many people said the reason for their resignation was low pay and lack of advancement opportunities, according to the survey conducted by the Pew Research Center in February 2022.
Advantages You Could Gain From Great Resignation
[Source-www.freevector.com]
Great Resignation hasn’t been all bad; there are advantages of it that you could use for your gain.
- Negotiate Higher Pay: You could negotiate higher pay as employers are realizing the value of employees.
- Figure out what is important: The “Great Resignation” was really about rethinking what’s important and what an employee wants. Millions of employees are rethinking what they want to do and how to do it.
- Resign and find a better job: While there is a shortage of IT professionals in any given year, the pandemic has worsened the situation. So, there are more options out there where employers are willing to pay more for top talent.
Great Resignation Statistics
Here are some statistics regarding Great Resignation
- One in five non-retired adults has left their job willingly.
- Seventy-four percent of people said in a LinkedIn survey that being stuck in their home has made them reconsider their current state of employment.
- According to the Gallup State of the Global Workplace 2021 report, 20% of people around the world are engaged in their work.
Things To Do For an Employer to Retain Their Employees
- Increase the wages of employees: It’s easier to pay an existing employee a higher salary than to recruit and train new employees.
- Provide advancement opportunities: Employees stay when they are engaged and have the opportunity to advance their careers.
- Support a hybrid work environment: The ability to work in hybrid situations like in the office or home can give an employee great satisfaction.
- Support stress reduction: In an average workplace, stress is abundant. You could try to reduce the stress and prevent burnout to maintain their employees. One could do that by providing recess of 20 minutes before and after the lunch break. Also, a firm could arrange an hour of therapy at the end of each week.
Also Read: Exit Interviews: A Strategic Tool for Employee Retention and Improvement
[Source-www.uschamber.com]
The Great Rehire
To get on with great rehire, the companies would have to do the following things:
Everyone who has quit their job has become part of the next movement. The Great Rehire is there to fill all the vacancies created due to Great Resignation. In April 2022, there were 11.4 million job openings in the U.S., according to the Bureau of Labor Statistics. These movements have started with people trying to control the work environment. Now, companies need to hire recruits with policies different from before the pandemic.
Here are some trends to consider while doing the Great Rehire:
- Faster Recruitment: One way to get top talent is to act quickly. The average time to recruit is 23.8 days in the U.S. Pushing the hiring process may result in great hires.
- Social Media Recruitment tools: Recruitment through social media could be a powerful way to recruit. Social media posts could show your positive work environment and the perks of working in your firm.
- Diversity and Equity: You could hire from diverse ethnicities, genders, and racial backgrounds. According to a study by Jobvite, more employees ask for diversity and inclusion initiatives in a company.
The Big Stay:
[Source – www.medallia.com]
With talks about the possible recession and big layoffs, people are deciding to stay in their current jobs. The rate of Americans quitting has slowed down by 5% in the first 3 months of 2023 compared to the last 3 months of 2022. This could be called the Big Stay. As the big stay is not long-lasting, the job market could pick up again after changes in economic conditions. So, the companies should not be content with current employees. Employees could again participate in the Great Resignation, jeopardizing the company’s working system.
Conclusion:
Because of the Great Resignation, there has been a reshuffle, rehire, and big stay in the surrounding era. The phenomenon has affected all countries and all sectors. But the most affected industries were the hospitality and healthcare, as these sectors were hit by COVID-19. The movement has not only reshaped the workforce, but also prompted individuals and companies to reconsider their priorities and strategies. Employers must adapt by providing higher wages, advancement opportunities, and support for hybrid work environments and stress reduction as the world adjusts.
