The balance of power is shifting toward employees, taking many managers and employers by surprise. As the “Great Resignation” sweeps through the nation, local companies are facing competition from out-of-state work remote opps. The sentiment is that companies need to adapt to the requirements of the evolving workforce to keep the lights on (in the office to which no one is going). Here is everything you need to know about the Great Resignation.
Americans are leaving their jobs in droves. In August, 4.3 million Americans quit their jobs. While some people have left the workforce entirely, job security and better pay are top concerns for others. The quit rate rose to a series high of 2.9% in August, according to the Labor Department’s Job Openings and Labor Turnover Survey.
In the UK, the number of open jobs surpassed 1 million for the first time ever in August. There are several reasons why workers are walking away – poor working conditions, fears of contracting Covid-19, and existential epiphanies among them – and researchers are discovering more as they continue to collect and mine data. In other words, employees are resigning at very high rates than ever witnessed before.
The Great Resignation is propelled by three forces: the changing generation, the economic crisis, and the realization people have had that they can have a different social contract, spend more time with family when they work remotely, and skip the commute.
Many employees planning to quit before COVID-19 pressed pause on their resignations amid job market uncertainty. During the past year and a half, they have had a chance to evaluate what matters to them and shift their work priorities. It’s not surprising that as the job market recovers and employees regain confidence, they’re ready to take the leap.
As COVID-19 vaccination rates increase and restrictions loosen, some employers are calling employees back to the office. But employees have grown accustomed to remote work flexibility. Employees are ready for a reset on what work looks like – not a return to 2019 normal. As a result, employees are open to new opportunities that afford them the ability to work remotely, as well as offer better benefits and incentives to keep them – inflation is up, healthcare is of the utmost importance, and people will not settle.
Here is what employers can do about the Great Resignation to mitigate adverse effects:
Employers need to prepare themselves for change. Employees are no longer happy with the status quo. Employers can no longer stay in their comfort zone and attempt to keep things on an even keel of the old saying “If it ain’t broke, don’t fix it” mentality. As the leader of your company, you to prepare yourself to create a culture that faces those changes head-on and embraces them.
On the way to resolution—and seeking to maintain employee satisfaction—creating an environment that fosters innovation and encourages openness will get you far. So, employees need to know that they are safe when speaking up. The only way to know if your workforce is happy, is to ask them – and get their feedback. Ask what they need, what would make their lives easier.
Your people want to grow their skills and stretch their brains. And if you aren’t helping them do that, they’ll go somewhere that will. Furthermore, The best way to retain employees during the Great Resignation is to make learning the core of your people’s everyday work.
Learning can be a core tenant of your organization, but that doesn’t mean much if people aren’t learning in ways that benefit them and your organization. The number one reason people leave their jobs is lack of career development. Also, companies need to start investing more than hard dollars into their workforce. Training and development go a long way.
At Loxo, we believe that you should not allow the Great Resignation to put your business down. Our best-in-class applicant tracking system serves as the backbone of your recruiting business processes. With Loxo’s automated recruitment solutions, your business can access top talents in a competitive business world. Request a demo today to learn more and get started.