What is the great resignation?
The COVID-19 pandemic, which saw more and more people working remotely as a safety precaution, has obviously brought ramifications to the world of work that will be felt for years to come. Though there are obvious effects like the diminishing role of a physical office, there is another that has caught many business owners by surprise: the Great Resignation.
The Great Resignation is a term referring to the droves of people leaving their jobs during the pandemic. In August 2021, 4.3 million Americans quit their jobs—just for that month alone. A survey by consumer financial services company Bankrate even found that over half of Americans expect to search for a new job over the next 12 months.
The Great Resignation isn’t solely a US phenomenon either. Other wealthy nations such as Germany and Japan have also reported seeing similar trends. This phenomenon even extends to developing countries such as the Philippines, where the Philippine Statistics Authority found that nearly 85% of labor separations in 2021 were actually resignations or employee-initiated.
What’s driving the great resignation?
For many, the Great Resignation represents an opportunity to find work that aligns more with their personal values and gives their day-to-day lives greater meaning. The pandemic even acted as a sign for some to re-examine whether their work gives them a greater sense of purpose.
Additionally, people could also have been inspired by the possibilities opened up by remote work. “Pandemic-inspired changes, including the ability to work remotely and/or from home, have transformed mindsets and expectations for many workers,” said Mark Hamrick, Bankrate senior economic analyst, and Washington bureau chief.
Finally, safety concerns also come into play. In the US, industries most affected by the Great Resignation include service and hospitality—all front-facing industries where workers have to deal with the general public. Many employees in other industries also have qualms about the safety of returning to work as offices slowly reopen again. As COVID-19 cases continued to rise, many employees reasoned that the risks to their health simply weren’t worth it.
To sum up, people now want jobs that are fulfilling, flexible, and allow them to stay safe. This applies widely across the board, whether it’s a manager at the head office or a retail worker at a department store. With people everywhere resigning virtually en masse, workers’ demands cannot go ignored by business owners any longer.
Keeping teams together
The onus is on management and business leaders to make sure employees feel happy and safe where they work.
To do that, a Harvard Business Review article recommends employing a data-driven approach to understanding what employees are thinking. Look at the following factors: how much room is there for employees to grow at your company? How much time usually occurs between promotions? Have employees seen any improvement in their pay? The answers to these questions can help a more accurate picture of how satisfied employees really are and identify which employees really are at risk of leaving.
Communication and engagement with employees are also crucial. Employees want to feel as if their company listens to them and actually values their opinion. Provide employees with a safe, open space where they can voice their suggestions and concerns, even an anonymous avenue where people can speak freely without fear of reprisal.
At times, businesses may need an objective third-party to facilitate better relationships between leadership and management. Realizing that parties too close to the matter may lose perspective and objectivity, Q2 HR Solutions presents the HR by Design solution that provides an unbiased review of your organization’s systems and structures. HR by Design even leverages a team of seasoned consultants and industry practitioners who bring over 40 years of relevant experience in a multitude of industries.
The Great Resignation is an undeniable phenomenon, rooted in very real concerns from employees. Although it will be a challenge for businesses to get through, the good news is that it is an opportunity for leadership and their staff to re-examine and strengthen their relationship. With a multitude of solutions at hand, emerging stronger from the Great Resignation is possible.