In the face of the pandemic in 2020, unemployment rose to unprecedented levels. These are serious times for workers, as not only are they faced with the prospect of having to compete for jobs, but they also have to cope with the constant threat of unemployment. People's priorities have changed, and they are most likely to be more concerned with their ability to survive than with the quality of their job. It is a time of uncertainty for all, but some people have already taken the initiative to find a way out of the mess.
At the end of 2021, as the world starts to rebuild itself and people learn to live with the pandemic, it is possible to note a very interesting trend: the percentage of workers who voluntarily resign their jobs will reach a record high. "The Great Resignation" is a phenomenon that will be born from the exhaustion of the workforce and the change in priorities of the population.
According to the U.S. Bureau of Labor Statistics, it is estimated that 4.2 million Americans quit their jobs in October. Experts see this rising number of employee resignations as part of the economic disruption that started two years ago. This number is expected to increase considering the trend of high unemployment.
In addition, the great resignation is also related to the great reshuffle that will take place when most of the major corporations in the world will be undergoing a reorganisation and will change their staff retention strategies as well as the organisation structure. The great reshuffle will affect both companies and their employees, especially those who are willing to resign. During the great reshuffle, the employers will be looking for effective way to retain their employees.
There are many possibilities and factors that may explain this phenomenon. In this article, we will explain what the “Great Resignation” means and what are the possible factors that may be contributing to this trend.
What is The Great Resignation?
The Great Resignation or the Big Quit is a term that has been widely used in the media to describe the global phenomenon of workers leaving their jobs in large numbers. Although the phenomenon of mass resignations from their jobs is already happening, it is only starting to be noticed by the general public.
Why is The Great Resignation happening?
Although it is not certain how many people had actually resigned in 2021, there are many possible reasons why this may happen.
Changing Priorities
The first factor that may contribute to this phenomenon is the changing priorities of the population. Since 2021, there are theories that the COVID-19 pandemic will be over and, as a result, many workers will have to rethink their priorities and decide whether they want to stay in their jobs or resign.
Seize new opportunities
The second factor that may contribute to this phenomenon is that some professionals see “The Great Resignation” as an opportunity for a career reboot.
For a long time, the public believed that the only reason why they had to work was to make money, especially in the hard times when the pandemic was at its peak. However, this is not the case anymore.
Many workers take time between jobs to redirect their focus and explore new career paths. As they settle on a mission they believe in and identify careers more fulfilling, they might quit their current position.
The Shift from Work-from-Home to the "Real World"
Another factor that may contribute to this phenomenon is the change in how the public views their jobs.
Many companies are shifting their workforce from remote to work-from-office. The shift from a remote workforce to an office-based workforce is a big change for many workers who are used to being in their own homes or have no other option but to work from home.
With this shift, many workers will be working more hours. Although this may be a good thing for some, it is also a reason why many workers may resign from their jobs as they are already accustomed to and prefer remote jobs.
Burnout
This burnout can be attributed to the lack of job growth or promotion opportunities, the absence of rewards for their work, or the lack of a chance to grow in their career due to the pandemic. Many workers will feel frustrated and burnt out with their current job.
5 Employee Retention Strategies
With all the factors in mind, staff retention, talent retention, and workplace satisfaction can all be affected by the Big Quit. This is why it is important to develop employee retention strategies to keep your employees happy and engaged.
In the following sections, we will discuss common employee retention strategies that can be used to retain your employees and reduce turnover.
1. Employee Recognition
When you are thinking about employee retention, employee recognition is one of important aspects. When employees are recognised for their hard work, they are much more likely to stay with your company. A culture of wellbeing helps your employee to be more engaged and energised, which in turn influence everything from revenue growth and productivity to employee retention.
2. Improving the Workplace Design and Arrangements
One of the ways to retain employees is to improve the workplace design by responding to their working style. Workplace design should focus on employee engagement, including changing the physical layout of work spaces and improving the way that work is done. One option is by adopting the agile work model which aims to enhance productivity and improve motivation. In addition, it is also recommended that employers use collaboration tools to enhance their ability to create a connected workplace for their employees.
3. Hybrid Workplace
In the current world, there is a growing trend of hybrid workplace, which is a combination of working in the office and at remote location or at home. In the context of retaining employees, this hybrid workplace arrangement can be used to maintain the best employees by offering the flexibility to let them choose where to work. Having both an office space available and a work from home arrangement, employees can use the office for a more collaborative work and connect with their colleagues, and work from home for selected days to take care of their family while getting work done.
4. Pay Attention to Personal Development and Talent Management
The Big Quit is happening because of the need for a better quality of life. Talent retention is a key aspect in this situation. To retain your employees, you must develop their skills and provide them with the right tools to improve their job performance.
Talent retention is also a key aspect in the Great Resignation. With a talented workforce, your company will be able to attract more customers and retain its existing customers.
5. Pay Them Right
As a leader, you need to pay attention to your employees' salaries. If you do not provide them with the right compensation package, it will be very hard for them to stay with your company.
Make sure that you are providing a competitive salary package. In addition, consider offering bonus incentives and other benefits that can help increase your employees' happiness and retention levels.
Combat The Great Resignation with Flexible Offices
The great resignation is a phenomenon that will be caused by the change in priorities of the population and the inevitable reshuffling of the workforce. As the economy rebalances, companies will have to look for ways to improve employee retention.
Improving the work environment and engaging employees are key staff retention strategies. Instead of an entire office overhaul or renovation which can be costly and resource-draining, consider leasing a serviced office instead, which comes with contemporary office design and top-tier IT connectivity to promote collaboration and flexibility.