The world has changed with the pandemic, yet, there are way more consequences we didn’t expect or foresee, for example, the markets and work methodologies changing forever.
Do you love your job? You are one of the few. People are no longer staying in their job for the money, causing a whole new pandemic: The great resignation.
When an organization focuses only on business results, it’s easy to lose sight of the people who make those results possible. Your employees are more than just cogs in a machine – they’re human beings with their own lives and aspirations outside work. If an employer creates emotional and financial stability for workers, a bond is built, leading to loyalty.
What is The Great Resignation?
Turning homes into offices for almost two years changed how people see their careers and what they must do to reach their goals. Plus, working from home makes people rethink what they want for their future.
According to the New York Times, more than 40 million people left their jobs in the United States in 2021, a worldwide record and the highest number since the Bureau of Labor Statistics started following the full-year data back in 2001.
A study of employees commissioned by messaging company Slack, which covers Australia, the United Kingdom, the United States, Germany, Japan, and France, exposed how job searches continue to pulse up every quarter since the early months of 2021 and haven’t stopped since.
Its called the Great Resignation but has also received the name of the Great Renegotiation, the Great Reshuffle, or the Great Rethink.
“It’s this recalibration that people have had where they’re rethinking the role of work in their lives,” said Brian Elliott, a senior vice president at Slack who heads up the Future Forum initiative. “They’re rethinking — not only in terms of things like compensation — but also, clearly, things like flexibility, purpose, balance.”
It's all about reciprocity and recognition
Harvard studies show five key factors contributing to the current state of the labor market, which is making a radical change since we last considered using masks exclusive to hospitals and scary (pandemic) movies.
These five factors, heightened by the actual pandemic, led to many workers either quitting their jobs or feeling the need to retire. On that note, that’s the first factor:
Workers are retiring more and choosing not to relocate, and this is because many workers are reconsidering their work-life balance.
“During the Great Recession, between 2007 and 2009, there was a 1.0% increase in workforce participation among workers 55 years and older, whereas, during the Great Resignation, there was a 1.9% decline.“
Retirement is the best option for those who can. Instead of staying in a bad environment or worrying about a change of position in another company, if their plan allows them, retirement comes as a glove to hand in this economy.
Realization post-pandemic has triggered these factors.
For example, the second:
Many workers are making localized shifts among industries rather than entirely exiting the labor market; it’s more like a change of scene because of pandemic-related fears, anxiety evolution, and a reluctance to return to in-person jobs.
Most decide to leave because their perspective changed, especially those who were overworked and couldn’t care or spend as much time with their families due to their demanding professions.
The relocation effect
This factor is sometimes not the most effective when it comes to the final realization of your career and life because changing businesses in the same industry might ease the problem for a while. Still, if the company you switched to carries a similar way to the one you left behind, you might see yourself jumping to another factor.
Such as the third:
Workers are reconsidering their work-life balance and care roles, and these changes of priorities are impacting the way people see their jobs. Reconsidering is not only an analysis of the current situation of a work environment but how this one affects life in all its areas.
Burnout is real
Work burnout is a state of physical and emotional exhaustion caused by long-term stress at work. It can lead to depression, anxiety, and problems with relationships and sleep. Burnout is not to be treated lightly! It can be prevented and even reversed by taking awareness of your state, some time off, boundaries between work and personal life, and practicing self-care.
How businesses must regard reconsideration
For organizations to improve employee retention and stave off the impact of the great resignation, it is imperative to start leading with heart, meaning putting forth initiatives such as DE&I, volunteer days, community building, and anything that really creates connection.
For example, flexible schedules, bonification, and the possibility to grow their career with supported education are significantly appreciated, as well as if there are generous parental leave policies for both genders and benefits for those who have families or thinking about creating one.
When a business is genuinely committed to creating a diverse and inclusive environment, attracting and retaining the best talent will grow, and a more productive and innovative workforce will evolve.
Establishing a positive culture within and genuinely connecting to what matters to employees is an undeniable advantage and alluring point for anyone looking for a new job position.
The fourth factor consists in how workers are making localized switches among industries, or, as it is called in this “great resignation”: Reshuffling.
Reshuffling is when a person moves among jobs in the same sector but with a higher difference or decides to switch between industries.
According to an analysis of BLS data conducted by the Economic Policy Institute in November of 2021, hiring rates surpassed quit rates across many sectors, suggesting that the great resignation comes with the high growth of attracting new applicants to different positions.
What makes them change?
Harvard Business Review indicates that many workers are prepared to quit if their employer does not offer a hybrid-work or remote option.
Nicholas Bloom, an economics professor at Stanford University, mentioned to ABC News that the job market is adapting because people have the bravery to speak up and demand what they deserve.
He stated to the media that:
“For the first time, maybe in decades, [historically low earners] can say, ‘Look, I can quit my job easily, find another job and get a pay increase at the same time; and in fact, that’s why they’re quitting. People aren’t quitting, mainly because they’re dissatisfied with their current jobs; they’re generally quitting to get another job.”
Some studies show how people can be just as productive from home even though they’re missing those physical interactions with other co-workers daily.
Remote work has been one of the most influential factors for employee resignation due to a lack of options inside a firm unwilling to adapt.
How to beat the great resignation
The recognition of thoughts and emotions is called self-awareness. This is an essential step for any company because once employees and leaders have conscious awareness of their thoughts and actions inside the business, it creates the foundation of a positive mindset shifting into the next step of working and employing.
According to Microsoft’s Work Trend Index, 53% of people surveyed said they focus more on their mental health and wellbeing.
“Is ‘The Great Resignation’ contagious?” This is the question that LinkedIn News stated for its followers, and they gave the final answer as “yes” with a noteworthy 59%. Its most liked comment backs it up with a concise declaration:
“A colleague leaving isn’t the cause of resignation – it’s the action which allows inequity, poor work environments, and other organizational faults to be seen clearly. When a peer leaves, and shares why they’re leaving, it gives others a chance to reflect on their own circumstances.”
As employer and employee, it's time to change
In today’s corporate world, money and location are no longer enough to make a job appealing.
For people interested in staying at your company or believing in it as a professional, you need more than just good paychecks and pizza days. All types of employees want meaningful work where there is an opportunity for advancement along the lines of their skillsets–and not being stuck doing something you don’t enjoy because it’s suitable paid or some kind of known comfort.
To avoid workplace disaffection, you need to look for insight and build a culture and community that allows individuality, diversity, flexibility, celebration, recognition, and care.
Tim Ryan, U.S. chair of PwC, expressed, “Our employees have the power.” At the same time, his firm goes through a transition that many are experiencing, one that allows more flexible employment, including various benefits and permanently remote work, a process that Ryan estimates to be a $2.4 billion investment.
The great resignation comes with greater hiring
The pandemic has opened eyes and perspectives for people to rebuff what they’d once been forced to tolerate — rigid bosses, customer abuse, time limitations, uncomfortable transportation, and unhappiness in general.
The reality is that workers are flush with opportunities, and as so many people seemingly quitting their jobs is only a wake-up call to how the working society operates. But also, if a business learns from why people leave and their reasons, their future employees will likely feel appreciated and valued.
Focusing on emotional needs as much as earnings make any industry keep the best talent from moving on and even attract the talent their way.
The DNAMIC way
Learn about how we built our business, keeping happiness a priority from the start. Our process of learning and growing while listening to our community’s needs and desires, is the way of growing toward top-class results for worldwide projects and inside success.