The Great Resignation: Why You Should Pay Attention
The last few months have witnessed a tidal wave of resignations. The Great Resignation remains one of the buzziest terms of 2021. Here at Alliance, many of our members are learning how to prepare, handle, and prevent the effects of The Great Resignation.
The last few months have witnessed a tidal wave of resignations. The Great Resignation remains one of the buzziest terms of 2021. The U.S. Bureau of Labor Statistics estimates that 2.9% of the entire workforce quit their jobs in August. As economists and pollsters are scrambling to make sense of what’s going on, organizations are figuring out how to navigate a fragile workforce. Here at Alliance, many of our members are learning how to prepare, handle, and prevent the effects of The Great Resignation.
What is The Great Resignation all about?
The Great Resignation is an economic trend in which employees are resigning from their jobs en masse. The exodus of workers is leaving companies strangled and millions of jobs unfulfilled. The cause behind these resignations is attributed to many factors. Starting from COVID-19, experts believe workers are rethinking their careers, work conditions, and long-term goals. However, others point out that most quits are happening among low-wage workers switching to better-paying jobs. This is why some people are calling it the Big Switch rather than the Big Resignation.
Initially, most people believed younger workers were the ones calling it quits. However, employees between 30 and 45 years old have higher resignation rates. In fact, resignations among younger employees have declined over the last year. Many of these mid-career employees most likely were delaying transitioning out of their roles due to the pandemic. The Big Quit might be the result of pent-up resignations. And, of course, for many of these workers, they’ve reached their breaking point. Mid-career employees are reviewing their life and work goals.
As far as industry-wise resignations, the hospitality, fast food, retail, healthcare, and tech industries were among the most impacted. Most of these quitters are looking for greater flexibility and improved work conditions. For many, the pandemic was a turning point in their lives that’s pushed them to radically see their working lives differently.
It’s time for companies to adapt
Anyone in an executive or leadership position needs to take a data-driven approach to improve retention. The process will look different for every organization, but it’s important to take action and consider the aftermath of The Great Resignation within an industry.
It’s critical to quantify the impact of the problem by understanding how voluntary resignations are affecting your business. When employees leave your organization, the remaining members often find themselves without crucial skill sets and resources that can negatively impact the quality of work, performance, and even the bottom line revenue.
If there’s evidence of resignations within your organization, it’s crucial to identify the scope of your retention problem. Explore factors like compensation, promotions, size of pay increases, compensation, performance, and training opportunities. Oversee your entire operation and identify blind spots that can be realigned to improve retention rates and maintain quality talent within your organization.
Lastly, right now is the moment to develop retention programs. Complete a deep-dive look into your organization to see what’s probably causing the increase in resignation to rethink your policies and structures. The key is to take the Great Resignation and see it through a data-driven microscope to make decisions that will benefit your organization and improve retention efforts.