5 Facts and Fictions about the Great Resignation
- May 9, 2022
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- Category: Blog
5 Facts and Fictions about the Great Resignation After the great depression of the 1930s and the great recession of 2008, we find ourselves amidst The Great Resignation. Also known as The Big Quit, the great resignation is one of the major results of the Covid-19 pandemic and resultant lockdowns. As the employees switch their jobs due to multiple factors, the companies are experiencing an aching employee turnover.
T5 Facts and Fictions about the Great Resignation After the great depression of the 1930s and the great recession of 2008, we find ourselves amidst The Great Resignation. Also known as The Big Quit, the great resignation is one of the major results of the Covid-19 pandemic and resultant lockdowns. As the employees switch their jobs due to multiple factors, the companies are experiencing an aching employee turnover. In March 2021, Microsoft conducted an extensive study finding out that around 41% of employed folks are planning to shift from their present job roles. Subsequently in August 2021, The US Bureau of Labor Statistics report highlighted an all-time high resignation number as 4.5 million employees quit their jobs. This accounts for around 2.9% of the entire American workforce. Here are some facts and myths about The Great Attrition, aka the Great Resignation.
1. Covid-19 is the catalyst, not the cause
Looking at it from the outside, it may seem that the virus is the core factor forcing people to resign. While it is true that the lockdowns helped employees to realize the importance of work and personal life balance; the need for a healthy work environment, flexible work schedules, and better benefits are fuelling the step-down. And those who want to work autonomously are diving into freelancing and entrepreneurship domains at an unprecedented rate.
2. Marked Transformation in Workforce and Workplace
The Covid-19 pandemic is a double-edged sword. On the negative side, the pandemic has hit jobs and livelihoods severely. But on the optimistic side, it introduced the world to new ways to work. Needless to say, the remote work from home scenario is a phenomenal change, and it is here to stay. As the biggest companies shift to a permanent work-from-home model, the transformation from a one-size-fits-all approach is already evident. A new ecosystem of asynchronous organization, roster work model, booming startups is birthing the need for self-leaders. Moreover, a remarkable shift on the infrastructural front is obvious as the demand for office space will go down. Post-pandemic, the offices will become mere cultural touchstones for occasional team-building activities and organizing boot camps.
3. Only some sectors, countries, and demographics are hit
Well, this is quite fictitious as the great resignation is being observed in almost all the sectors, though not uniformly. On the national front, it is most prominent in the USA and European countries. In Asia and Africa where the opportunities are already low compared to the job demand, not as many people are resigning as of now. Secondly, the forefront sectors such as healthcare, hospitality, and leisure are experiencing the highest turnover. Moreover, mid-career folks are the hotspots considering either a job change or venturing into entrepreneurship.
4. The Great Resignation is about gains and realizations, not quitting and subtractions
As humans are programmed to look at quitting from a negative angle, we are missing out on the bright side of this transition phase. More than quitting, we are going through a transformative phase where employees are realizing their priorities and worthiness, and grabbing what is best for them. Most of these transitioning folks were underpaid, ill-treated at the workplace, or simply unhappy with their current role. As the job vacancies are soaring high, the employers will need to provide what employees expect.
5. Employers need to stop, think, and implement
A famous quote by Marcus Buckingham says, “People quit managers, not companies.” It is high time that employers recognize the fact that a humane and inclusive workplace is not optional anymore. Now is the best time for companies to bring long-overdue fundamental changes and starts caring for their employees. Frequent, unfiltered, and open-ended feedback from employees and a keen eye towards implementing the solutions can drastically boost the employee retention of companies. It is evident that “The Great Resignation” is more than just a seasonal phenomenon. As hows, whys, and when we work changes, coping up with the new ecosystem is a pressing challenge for companies that need to be addressed at the earliest. A holistic approach considering all the key factors will go a long way to tame employee turnover and sustain work motivation.
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