With the onset of COVID-19, there was uncertainty and upheaval in the job market. As a result, mass layoffs have occurred in the worst-affected industries like hotel and food services, retail, and travel.
Many employees opted for extended work-from-home facilities, and many felt undervalued and unappreciated, which led to them rethinking their jobs and career paths.
The pandemic changed the world and how people think. Never in a million years had anyone imagined something like this would happen. There were shutdowns, layoffs, quarantines, and restricted access to goods and services. This gave people the time to reflect and introspect on what matters most.
This gave birth to a new trend of ‘great resignation’ where workers quit. Management professor Anthony Klotz of Texas A&M University predicted this phenomenon of workers quitting jobs. He suggested a theory called “The Great Resignation,” which means many individuals would leave their employment after the COVID outbreak stops and things return to “normal.”
In a Bloomberg article in May 2021, he said it would be difficult for people to return to 9 to 5 office hours. Unfortunately, the prediction came true, and the United States was the most affected by this trend. Let us understand why people are leaving and what can be done to prevent the Great Resignation.
What is the Great Resignation?
According to the US Bureau of Labor Statistics, started in the USA reported an all-time high number of voluntary quits in November 2021 of 4.5 million, which is 3% of the workforce.
People quit their occupations because they were unhappy with their working conditions, industry, or work-life balance. COVID affected the decision-making process slower for individuals living from paycheck to paycheck. Employment has increased as people who had been putting off leaving for various reasons are now feeling safe doing so, thanks to the advent of COVID-19 vaccinations and the associated economic boom.
People were more likely to leave their employment and start wherever they felt they had more autonomy and control over their schedules and workloads due to the proliferation of possibilities to learn new skills, work remotely, and engage in freelancing endeavors.
What factors drove the Great Resignation?
The Great Resignation has affected many fields and areas in the United States, while some are more severely affected than others.
Let us understand the reasons that were notably the top reason for employees quitting.
- Employees wanted to reevaluate their life priorities and work flexible hours.
- People had high aspirations for better lives for themselves, and they had access to means to make those dreams a reality.
- Employees have always wanted a work-life balance, so it’s no surprise that this desire causes tension in the workplace.
- The pandemic allowed the culture of working from home, making employees feel more productive, and saving time from commuting.
- Now, work can be done anywhere, saving employees time and money.
- Workers realized they could save money on work-related expenses like child and pet care by switching to WFH. However, as more and more institutions adopt online education, many active parents have found themselves needing a reliable source of child care.
- Employees could also save money for after-work socializing, eating out, and traveling. This has resulted in them using their spare time and newly acquired disposable income to enroll in various online educational courses designed to enhance their skills and resumes.
- The pandemic allowed much-needed family bonding time, spending quality time with them, and juggling between zoom meetings.
Apart from these reasons, lower-wage workers have quit at a greater rate than those making higher salaries. After decades of stagnant and decreasing incomes, workers are fighting against a wage deficit by leaving low-paid employment in favor of higher-paying occupations.
How can companies prevent employees from Great Resignation?
Employers can undoubtedly learn from this trend, make amends, and focus on employee retention programs. It’s crucial to take a data-driven approach to figure out how many people are leaving, who precisely has the most significant turnover risk, why individuals are leaving, and what can be done to avoid it.
- Employers that appreciate their workers’ worth will treat them fairly and show appreciation via things like reasonable policies, reasonable pay, reasonable hours, genuine praise, and equitable opportunities for promotion.
- Employers also need to realize that the fundamentals of the workplace are changing and that workers need more leeway to strike a healthy work-life balance. For example, using flextime, telecommuting, and hybrid work models has shown that employees can be productive and provide results while maintaining these options.
- Because of technological improvements, flexibility is now feasible and essential for boosting employee happiness, participation, engagement, commitment, and performance. Consider workers who are parents, particularly women, who have been hit harder by the pandemic since they are more likely to be responsible for caring for children.
Things like working from home, flexible hours, and hybrid jobs were unheard of before the pandemic. Since the pandemic also impacted businesses, it has been challenging for companies to adapt to the new circumstances. So, when companies announced returning to the office, competitors lured employees, citing that they never had to work from office premises. This is the sole reason employees switch jobs.
As there are many benefits to working from home, employees are willing to quit their current jobs and opt for working remotely with perks. It is safe to say that WFH, or remote working culture, is here to stay.
Conclusion
It is a two-way street. First, employers and employees must come to terms and be reasonable with their expectations. Then, once companies identify the significant causes of employee resignation, they must implement programs to assist employees in overcoming their difficulties and provide better training opportunities to reduce the resignation trend.
Employees can use this as an opportunity to advance their careers and improve themselves so that recruiters recognize their value and retain them in the organization. Employers must retain the right employees by providing assistance and advancement opportunities.
