The Great Resignation: What and Why?
What is the Great Resignation? 1
Professor Anthony Klotz of Texas A&M University proposed the concept of the Great Resignation, which forecasts a high number of individuals quitting their professions once the COVID pandemic is over and society returns to "normal." Managers are now dealing with the pandemic's repercussions as staff re-evaluate their careers and quit in historic numbers.
The work market was full of uncertainty and mass layoffs during the start of the pandemic: millions of people lost their jobs, and those who were fortunate enough to stay employed stayed in their roles for the sake of survival. Workers in privileged positions who do not live paycheck to paycheck are finally moving on as we move closer to recovery. Most people in developing countries, who lack social security and unemployment benefits, cannot afford this luxury. Yet, they may still be under strain and frustrated due to the pandemic's disturbance.
According to the most recent data available from the Bureau of Labor and Statistics, the so-called quit rate – the percentage of workers who voluntarily leave their jobs – reached a new high of 3% in September 2021. The rate was highest in the leisure and hospitality sector in September, with 6.4 percent of workers quitting. From May through September, a total of 20.2 million people departed their jobs.
Businesses are feeling the consequences. According to a poll conducted in August 2021, 73 percent of 380 businesses in North America were having trouble hiring employees, which was three times the percentage who claimed the same thing the previous year. And 70% believe the problem will continue into 2022.
The Great Resignation: Why?
People are seeking a shift for various reasons, termed the "Great Resignation" by some economists. The epidemic shifted some workers' priorities, motivating them to pursue a "dream job" or transfer to being a stay-at-home parent. On the other hand, many others decided to leave because of how their employer treated them throughout the pandemic — or did not treat them. Workers eventually chose to stay at companies that provided support over those that did not.
Those who had thoughts about quitting their jobs before the pandemic due to poor working cultures were pushed to the breaking point. That's because, according to a recent Stanford study, many of these organizations with poor working conditions increased their reliance on decisions that hurt workers, such as layoffs (while, conversely, companies that had good culture tended to treat employees well). This pushed out already angry employees who had avoided layoffs but could tell they were working in hostile settings.
Employees have increased their expectations. In the end, employees are less likely to be productive If they are worried about their kids' health, financial security, and bills that need to be paid. Problems that come with being a human being with responsibilities. We, therefore, conclude "people are not machines," a conclusion that employers need to see and live loudly and clearly if they are to keep and retain their employees.
Workers expected their bosses to take steps to alleviate or at least acknowledge their worries. Businesses that failed to do so have suffered as a result. According to the Personio study, more than half who planned to resign did so due to a loss in benefits, a worsening work-life balance, or a hostile workplace culture.2
Dr. LaNail R. Plummer, CEO of Onyx Therapy Group, stated that quitting is about an employment boundary and a personal decision to prioritize oneself. When people quit smoking, they feel compelled to create a barrier around themselves to focus on their needs and desires, including their physical and emotional health. Our society places a high value on being physically present at work to observe employees, yet this can lead to micromanagement. There's a lot of emphasis on being in a physical structure for productivity; nevertheless, we saw during the pandemic that many people can be incredibly productive outside of an office building while also being happier. Forcing people to return to work sends a message to employees that their firm doesn't care about the optimum work environment for both the individual worker and the clients.
Companies that can adapt their culture to allow employees to be completely themselves and have a life outside of work will be the best to retain their talent, regardless of whether they work in the office or remotely. 3 While companies that insist on a complete return to work without even inquiring how employees are feeling will face a flood of resignations due to their insensitivity.
If the great remote work experiment were to come to an end, a recent survey on Blind, an anonymous professional network, tried to explore how the return to the in-person office would affect employee attrition. On March 27, a Blind user created a pop-up poll asking if others would leave "if WFH ceases." Responses from 3,050 members of the Blind network are included in a raw file representing the survey results. Over a third of respondents (35%) said they would quit WFH if it ended, while 54% said they would not. Surprisingly, 349 people (11%), or 349 people, indicated they had "already negotiated WFH forever."
The solution is to adopt a human-centered approach. We are in charge of human resources, which includes assisting our employees in managing their work and careers. Employers can begin to design a road back to how the workplace will run in the future if they begin with the assumption that employee attitudes have changed since 2019. 4
1Accessed 20 Dec 2021, https://theconversation.com/the-great-resignation-is-a-trend-that-began-before-the-pandemic-and-bosses-need-to-get-used-to-it-170197
Weforum, 29 Nov 2021, Abhinav Chugh,What is the great resignation? An expert Explains, Accessed 20 Dec 2021, https://www.weforum.org/agenda/2021/11/what-is-the-great-resignation-and-what-can-we-learn-from-it/
2 BBC, 1 Jul 2021, Kate Morgan, The Great Resignation: How Employers drove Workers to Quit?, Accessed 20 Dec 2021,https://www.bbc.com/worklife/article/20210629-the-great-resignation-how-employers-drove-workers-to-quit
3 Forbes, 28 Jul 2021, Holly Corbet, The Great Resignation: Why Employees don’t want to go back to the office?, Accessed 20 Dec 2021, https://www.forbes.com/sites/hollycorbett/2021/07/28/the-great-resignation-why-employees-dont-want-to-go-back-to-the-office/?sh=45605f332000
4 HRDirector, Emma Crowe, How employers need to manage the great resignation, Accessed 20 Dec 2021, https://www.thehrdirector.com/employers-need-manage-great-resignation/
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