THE GREAT RESIGNATION
In the past few months, there is a tidal wave of resignations in the U.S. and following the model, a huge working population around the world followed “The Great Resignation”, the term coined by Anthony Klotz, a psychologist and professor at Texas A&M.
According to the U.S. Bureau of Labor Statistics, 4 million Americans quit their jobs in July 2021. The pandemic has given people all kinds of reasons to change direction of their career growth. While some employees are leaving their job for a better pay and status, some are leaving their job for stability and happiness. The pandemic had changed the mindset of people towards their work and how they should really value the time.
Employees around 30 to 45 years old had the greatest resignation rates. One of the important reason that outlines the reason why mid-career employees are leaving their jobs are months of high workload, hiring freezes, other pressures, thus causing them to rethink their work and life goals.
The statistics reflect that employee turnover rate is very high in health care and related industries. Restaurants and hotels, industries that require in-person interactions, have been hit the hardest by waves of resignations. The great migration to remote work in the pandemic had a profound impact on how people think about when, where and why they want to work. The new working lifestyle had ignite a desire to make family a priority.
The Great Resignation sparked the biggest challenge for the employers on how to retain the employees in this tight labor market where they are able to quit their jobs in favor of work that offers better pay, benefits, and working conditions. In a nutshell, These trends highlight the importance of taking a data-driven approach to determining not just how many people are quitting, but who exactly has the highest turnover risk, why people are leaving, and what can be done to prevent it.
This new concept had also give rise to a question Could this Great Resignation bring about meaningful, long-term change to workplace culture and the way companies invest in their employees? The answer is yes. There is no denying that “The Great Resignation” had made it compulsory for companies to make serious investments in their employees’ wages, opportunities, and overall wellbeing.
This change had forced both employees and companies to rethink and redesign their jobs. Companies are required to change their working techniques and to respond dynamically towards the changing needs of the workforce. On the other hand, employees need to value their worth and raise their expectations from the CEO and companies.