GREAT RESIGNATION

1. Background

When people first began leaving their jobs en masse in early 2021, experts generally believed that the “Great Resignation” was a direct side effect of pandemic chaos and uncertainty.
Many workers quit due to Covid-19 safety concerns or because their companies didn’t provide adequate remote-work support.
Millions more left for more autonomy or meaning in their work; many of these shifts are linked to lockdown reflection. And others quit for more money elsewhere, as the labor market tightened.
But something unexpected is happening now. Even with Covid restrictions mostly lifted and the pandemic waning in many countries, the resignation letters are still piling up. Despite widespread predictions of a slowdown, data shows not only are people still leaving positions in spades, but many workers who haven’t resigned yet plan to do so in the coming months.
Experts suggest that two factors are fueling this trend. While the pandemic served as the trigger, the seeds of the Great Resignation were sown well before – and until the deep-rooted factors causing workers to quit are addressed, resignations are unlikely to subside. People are also now looking at work and the role they want it to play in their lives differently, and switching to jobs that better align with their new values. And, say the experts, the extent to which the looming slowdown will affect these quit rates remains to be seen.

2. The complex employment picture

Despite significant changes in the economy since the onset of the Great Attrition (or what many call the Great Resignation), the share of workers planning to leave their jobs remains unchanged from 2021, at 40 percent.
That’s two out of five employees in our global sample said that they are thinking about leaving in the next three to six months. However, the past year has revealed nuances of the larger trend: Reshuffling.
Employees are quitting and going to different employers in different industries (48 percent of the job leavers in our sample).
Some industries are disproportionately losing talent, others are struggling to attract talent, and some are grappling with both. Reinventing.
Many employees leaving traditional employment are either going to nontraditional work (temporary, gig, or part-time roles) or starting their businesses.
Of the employees who quit without a new job in hand, 47 percent chose to return to the workforce.
However, only 29 percent returned to traditional full-time employment.
Reassessing. Many people are quitting not for other jobs but because of the demands of life—they need to care for children, elders, or themselves.
These are people who may have stepped out of the workforce entirely, dramatically shrinking the readily available talent pool.

3. Factors driving great resignation

The Great Resignation is a phenomenon that spans industries and regions across the U.S. -- though some sectors have been hit harder than others.
In particular, the U.S. Bureau of Labor Statistics has repeatedly highlighted many people leaving their jobs in the leisure, hospitality, and food services industries. Retail is another area that many have left. At the height of the pandemic, many workers in those sectors had their hours reduced or eliminated. Many also realized the precarious nature of their employment which offered no job security.
Those in professional and business services have also quit. The Bureau of Labor Statistics reported 706,000 resignations in August 2021 alone. The reasons why those in the professional and business services sectors have resigned are many and varied. They include a lack of work-life balance, a desire for more fulfilment, or just a better place to work.
The ongoing stress and anxiety of the pandemic have also put extreme pressure on those in the healthcare industry. This resulted in 579,000 people walking away and resigning from jobs in August 2021.

3. The impact of Great Resignation

In light of these resignations, the labor market has incentivized companies to offer better benefits and higher salaries.
Economists predict that the race to attract top talent will continue with larger companies who can offer better salaries winning out.
A recent report from the Conference Board found that the share of job postings that include a hiring bonus more than doubled between March 2020 and October 2021.
According to research from the WFH Project, while higher pay can be a big factor, people value the flexibility to work from home as much as they would, a ten percent pay rise.
Consequently, companies across the board are offering employees shorter and more flexible work weeks with several shifting permanently to work from home.

5. The employee perspectives on resignation

Negotiate higher pay. This is an opportunity to have employers recognize employee value and negotiate higher pay.
Negotiate a promotion. Employers increasingly need to show they value their employees, so this is an opportunity to ask for that promotion.
Cross-train and make a lateral shift. This is an opportunity to cross-train in different job roles or responsibilities. There is also the potential to make a lateral job shift within the same organization.
Figure out what is important. The Great Resignation is about figuring out what's important and what employees want. Millions of workers are rethinking what they want to do and how they can do it -- and so should those in the tech industry.
Resign and find a better job. While there is usually a shortage of skilled IT professionals in any given year, the pandemic exacerbated the situation. That means that there could be more opportunities out there, where employers are more willing to pay more for top talent.

6. Factors that can Prevent Great Resignation

Reward employees with higher wages. It's easier to pay an existing employee a higher wage than to struggle to recruit and train new employees.
Provide opportunities for advancement. Employees stay when they are engaged and have the opportunity to advance their careers.
Provide tuition reimbursement. Many employees want to better themselves. Providing tuition reimbursement for IT education can be a benefit that will pay dividends to the employer as well.
Support a hybrid work environment. The ability to work flexibly -- either in the office or at home -- is critical to employee satisfaction. Businesses that reject hybrid work may have a hard time finding job candidates.
Enable team collaboration. When employees are part of a team that works and collaborates well, that can often be an incentive to remain with the team. Team collaboration is about shared goals, activities, and tasks that are supported across both in-person and remote environments.
Support stress reduction. There is no shortage of stress in the average workplace and there are many ways to help employees manage stress and prevent burnout.

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