Great Resignation is a concept brought forward by Professor Anthony Klotz of Texas A&M University. This idea predicted and cited a lot of individuals leaving their jobs during and after the COVID pandemic. Most employees started re-evaluating their careers because of realizations that developed during the pandemic.
This resulted in most workers leaving their jobs and finding new ones, while others left the labor force altogether. During the great resignation, two observations were created. The first is that the highest resignation rates were seen in mid-career employees. The second observation is that resignation rates were higher in the technology and healthcare industries. Here is what you need to know about the Great Resignation and how employee retention programs can help you counter its effects.
The Rise in Resignations
Lots of workers left their jobs between 2020 and 2022. According to experts, there has been an increase in resignations since the end of 2020. These numbers even surpassed their pre-COVID levels in the final three months of 2021. The great resignation did not occur because workers chose to abandon work or leave the workforce altogether. It was because lots of workers chose to leave their current jobs and go to new employers. There was also an increase in the number of people who left the labor force altogether. However, most of these are workers in their 50s who have been retiring at a faster pace than usual.
What Caused the Great Resignation?
So, why have workers been leaving their jobs and going to other employers in large numbers? Some commentators suggested that the great resignation was a result of more workers looking to make drastic career changes. However, there are several other factors that contributed to people leaving their jobs in the years between 2020 and 2022.
Low Pay and Lack of Opportunities
According to a Pew Research Center survey, most workers cited low pay, feeling disrespected at work, and a lack of opportunities for advancement as their reasons for leaving their former jobs. The survey also indicated that most workers who left are now employed elsewhere with jobs that have better pay, more opportunities, and more work-life balance.
Child Care and Flexibility Issues
Other workers also left their jobs because of childcare issues. This was the reason cited by 48% of workers who had a child younger than 18. Some also complained about not having important benefits like health insurance and paid hours off.
Lack of Location and Time Independence
A high rate of workers leaving their jobs also were in industries with low location and time independence. These are businesses that require their workers to be close to the workplace and to work specific hours. This includes industries where providers and recipients of products and services need to be in the same place at the same time.
Examples of such companies are ship cruises, dine-in restaurants, and passenger airlines. Such business models have cascading effects on employees’ motivation, participation, and wellbeing. Services at a specific location where the providers and receivers do not need to be there simultaneously, are doing slightly better. This includes self-service stations.
How to Turn Things Around for Your Business
There are several ways to counter the effects of the great resignation and to stop workers from leaving your company. One of the first things you need to do is to look for signs of employee burnout. If you notice that some of your workers are suffering from burnout, you should look for ways to give them a break and provide support. For instance, you can offer more accommodating work arrangements.
Most companies are offering remote working opportunities, hybrid work, and more flexible schedules. It is also important for your company to listen to what employees want instead of continuing with tone-deaf, top-down decisions. According to Business Solver, 92% of workers said they would stay at their jobs if their managers were to show more empathy. To stop losing workers, you may also want to consider making use of employee retention programs.
There are several signs of burnout. Common signs of burnout in the workplace include exhaustion, cynicism, and a sense of ineffectiveness. If your employees are showing signs of burnout, you can also employ the services of companies like Referria and take advantage of our employee retention programs. If you have already lost talent, Referria can also help you recruit and retain top talent to prevent further challenges. Give us a call today to get started!