The great resignation is changing the the way we work and want to work
Let’s start with some big, shocking numbers. Did you know that in 2021, according to the U.S. Bureau of Labor Statistics, more than 47 million Americans voluntarily quit their jobs. This was a totally unheard of and unexpected mass exit from the workforce. All because of & spurred largely by the Covid-19 pandemic. This massive exodus has even been given its own name. It is being referred to in multiple terms such as the Great Resignation, the Big Quit, or the Great Reshuffle.
Many are wondering why this has happened but some of the most common reasons are wage stagnation despite the massively rising cost of living, people being unhappy in their jobs for far too long, and others, which we are going to take a look into in today’s blog post.
Why?
That’s a question employers & economists are asking when they are seeing the statistics 2021 brought especially in but not only in the USA.
One of the biggest reasons is of course the word no one wants to even say out loud anymore.
The COVID-19 pandemic with all its restrictions and lockdowns has given all working people enough time to rethink their careers, work conditions, and long-term goals as well as a fact whether their job is making them truly happy or it is just a place to go earn money to pay all bills.
Employers and companies have started trying all sorts of ways to get people to return from home offices back into actual office spaces, which is causing a lot of backlashes, tension, and resistance from employees. At least those who like working remotely and feel more productive doing so.
Another major issue is the freedom of choice, respectively lack of it. People have realized that working from home (while it may not be for everyone) many are actually liking this setup. It offers them a better work-life balance and more flexibility, which they may not have had enough of pre-Covid.
Millions of people are also suffering all sorts of added health issues from long COVID, which are causing them further issues with working either longer hours or full time.
A new Pew Research Center survey found that low pay, lack of opportunities for advancement, and feeling disrespected at work were also at the top of most reasons why Americans quit their jobs last year in the tens of millions.
People felt overworked, underpaid, and underappreciated, and workers with young children were facing issues balancing parenting, childcare, and work.
But if you think that this is only a problem in the US, think again.
A survey done in some of the European countries such as Belgium, France, the UK, Germany, and the Netherlands by SD Worx found that employees in Germany had the most COVID-19-related resignations, and 6.0% of the workers have actually left their jobs. The UK was close behind in second place and the Netherlands and France followed.
Issues with many people leaving their jobs are also a problem in India, China, and Australia.
How to stop people from quitting
We’ve established the problem, now let’s look at a few potential solutions. Employers can take a few lessons from what made people quit in the first place and put measures into place to retain new staff long term.
Some examples may be:
Offer people flexibility & growth options
The freedom to work from anywhere and hours that suit the individual rather than a set 9-5 schedule have become the absolute top-level priority for employees and the biggest benefit an employer can offer its staff. People value it so much as if they were given a 10% pay raise, according to research from the WFH Research Project.
Also regularly look for and offer your staff opportunities to advance and grow their career by offering courses, interesting projects, or encouraging them to develop their own ideas that could benefit the business they are in.
Pay people fairly & well
People were quitting because they felt underpaid. Well, it makes sense. The cost of living is going up, energy, food, and fuel prices are hitting new record highs everywhere and people are starting to struggle. Employers should be regularly keeping up with how the cost of living in each country where their employees are from is affecting their staff and adjust their wages accordingly.
Because the main priority of earning a wage is to pay bills and if that starts to be a problem, people will go elsewhere. Not to mention that if basic bills become a struggle to pay for, it adds a lot of absolutely unnecessary stress on employees. And it can all be avoided so easily. Always be willing to talk about money with your staff openly and honestly.
What should you take out of this article? One thing. Listen to your staff, their desires, their problems (if they are reasonable), and do what you can to give it to them. The reward will be a loyal and happy workforce long term.
