Resignations rates are heating up, simmering high risks of turnover. All the predictions of the post-pandemic resignations are coming true. As employees return to the office after being formally closed down for over 18 months, millions of workers are either switching or quitting their jobs altogether, creating The Great Resignation.
But what triggered the great resignation? What is creating the mass exodus? And what does it mean for both the employer and the employee?
Understanding The Great Resignation
According to Microsofts’ 2021 Work Trend Index, about 41% of the workers are likely to quit their jobs within the following year. The researching organizational psychologist, Dr. Anthony Klotz named this trend as ‘The Great Resignation,’ as for any previous greats, like ‘The Great Recession”, or ‘The Great Depression, the impact of this great resignation is predicted to be monumental.
For instance, think from a perspective of a business leader. As the world resumes normalcy and you can finally see the light at the end of the COVID19 tunnel, 40% of your workforce quits. Where will this put their business? How will they be able to serve their customers? The hope of ray for resurrecting businesses from the catastrophic pandemic will surely get shattered by the current mass exodus.
3.6 Million Americans regained their job in just a month of May. In contrast, the highest quitting was recorded in the previous month of April when 4 million Americans left their jobs; making a two-decade high record. The mass exodus of employees is coming as companies are opening doors for their employees again. But, thousands of workers are switching their jobs or are just stepping off the career ladder.
The Resignation Distribtion
According to Guardian, the social, economic differences is an unavoidable deciding factor of who is quitting and why:
- Blue Collor Workers: Many reatail and service workers are actuly gravitating towards blue-collor jobs in offices, warehouuses where they are getting paid less but comes with other added benifits in comparison like higher upward mobality chances and companssion.
- Mid-Career Workers & Managers: According to Viser, betweeen the period of August 2019 and August 2020, a huge number of employess between the age of 30-45 left their jobs for better opportunity; signalling that the more people with the more estblished careers are consdiering to switch jobs. Furthmore, the mangers resignation percentage, as of December 2020, was 12% higher than the previous year.
- Gen Z: The Microsoft research fashed light on the fact that Gen Z emplyees don’t feel exicted or engaged about their work; as a result, 54% of them are considering to hand resignations.
What Is Creating the Mass Resignations?
An amalgamation of exhaustion, imbalanced working hours, and numerous financial reasons has made the employees realize their corporate jobs’ true value thus creating the seismic shift in the job market.
Employees keep shifting from one establishment to the other company in hunt of better opportunities all the time. But people who planned on leaving their job hold the resignation due to the COVID-19’s uncertainty. Now, as the world is getting back to normalcy, the resignations piled up over the course of the past 18 months are being handed at the same time. Thus backlog is playing a significant role in The Great Resignation.
Unbalanced Work Life
Without a shadow of a doubt, in the difficult times of the global pandemic, technological advancement helped to keep complete economic collapse at bay. Technology has made the complete closure of business and education institutions possible. How would we have survived without Zoom, Meets, Amazon, Netflix, and all the other platforms that made work and study from home viable? It would have been like getting back in the dark age. So, yes, technology has been the real savior.
But it has also blurred the line between work and private life. With work being constrained to the computer screens, the work hours have blurred, to some the flexible working hours might sound great, but on the flip side, it turns the employees entire day into working hours.
The Stark Realization
The COVID pandemic has facilitated the workers with time to rethink their entire careers. According to a LinkedIn poll of over 25k people, an estimate of 74% are considering quitting their jobs. After working for a year and a half, many are on the edge of burnout. Other than killing millions, the COVID pandemic has caused a severe mental health conditions, especially amongst the working class. Now, people are prioritizing their health a lot more than their jobs.
The Great Resignation: The Good & The Bad
Today’s reality is, most people are less than thrilled about returning to their offices. According to the BBC’s The Network Survey, 89% now prefer working remotely, at least for some part of the time. Personal Financial Website sheds light on the fact that one in every three employees in the US is considering a switch or leaving their jobs altogether.
The scarcity of workers in the country is great news for people on the lookout for new jobs. With lesser competition, many are receiving offers not only from one but multiple companies. Unlike pre-covid, companies are now competing for the top talent, so it is an excellent time to look for a job. In addition, switching jobs for better opportunities has become easier.
But the other side of the coin shows a slightly grim picture. The colossal vacancy created by the great resignation, leaves the surface industry struggling to fill the vital roles. Moreover, as the employees re-evaluate their career priorities, the great resignation doesn’t seem to be ending anytime soon.