Have you heard about ‘The Great Resignation’?
The high rate of resignations among American workers that began in the spring of 2021, when there was a high demand for labor and a low unemployment rate, even as immunizations lessened the severity of the COVID-19 pandemic, is referred to as "The Great Resignation".
The phrase was first used in May 2021 by Anthony Klotz, a professor of business administration at Texas A&M University. He attributed the phenomenon to pent-up demand among workers who put off making early retirement decisions during the pandemic.
Causes and Background of ‘The Great Resignation’
Despite the fact that each person's reasons for changing jobs or leaving the workforce are tied to personal circumstances, the implementation of COVID-19 caused many people to put off making decisions, and voluntary separations from employment for reasons other than retirement fell from 2.3% in February 2020 to 1.6% two months later.
Nevertheless, the Job Openings and Labor Turnover Survey (JOLTS) from the U.S. Bureau of Labor Statistics revealed that the pattern changed from April 2020 to March 2022, when 3% of the workforce would leave their positions (BLS).
It is largely reflected in the decline in hiring for new roles since employees sometimes leave their jobs to get better offers elsewhere. Undoubtedly, many people delayed a planned exit during the economic turmoil at the beginning of the epidemic, whether it was to establish their own business or for another purpose.
Hiring has grown as a result of the introduction of COVID-19 vaccines and the accompanying economic recovery, even though individuals who had put off leaving for a variety of reasons now feel confident in doing so.
Some have hypothesized that these additional factors related to the COVID-19 pandemic may have contributed to the rising quit rate:
Several employees made changes to their priorities in life as a result of the pandemic, reducing their working hours or quitting their jobs altogether.
As remote employment became available in 2020, employers requested that staff members go back to the office.
When more options became available, employees were compelled to leave due to mistreatment by customers and employers during the epidemic.
The labor market is competitive since it has taken a while for the labor force participation rate to recover from its post-epidemic lows.
As schools transitioned to online learning, some people quit their jobs because they couldn't find daycare, while others did so because they wouldn't comply with workplace COVID-19 immunization rules.
Significantly, though, a Pew Research Center study done in February 2022 found that the top reasons for leaving were low compensation and a lack of promotion possibilities, indicating that many employees departed for a better offer.
Intentions to Resign
How the great resignation changes the future of remote work?
In the current year, 43% of employees indicated they were very or highly inclined to contemplate changing companies, up from 41% a year earlier, according to the 2022 Work Trend Index poll by Microsoft Corp. (MSFT). The percentage was 52% for Gen Z and millennial employees in the US, and it increased to 60% for those recruited during the epidemic.
23% of American workers, according to a November 2021 survey, plan to leave their jobs in the coming year. The desire for better working circumstances, burnout, and the search for higher compensation was the main factors mentioned.
How Can Businesses Stop Workers from Quitting?
The inventor of the "Great Resignation", Texas A&M University professor Anthony Klotz, asserts that organizations may keep burned-out workers on staff by providing them with breaks and other assistance. Employers can provide more flexible work options, such as remote work, hybrid work, and flexible schedules, according to experts.
Also, rather than making top-down, tone-deaf judgments, they can pay attention to what employees say they want and need. Also, make sure to engage remote employees.
What Indicates Workplace Burnout?
In many professions, burnout takes on different forms. A burnt-out respiratory therapist or veterinary technician may have gone through more trauma at work than the average office worker would have to deal with. Generally speaking, the signs of burnout include exhaustion, cynicism, and a sense of inefficiency.
Burnout has been a problem throughout the epidemic due to unfavorable working conditions, such as regular exposure to COVID-19, inadequate staffing, insufficient vacation time, and emotional abuse.
Do you need to also join the Great Resignation?
It may sound extremely enticing to jump on the Great Resignation bandwagon, but is it a good idea to leave your job right away?
Despite the Great Recession, the process of finding a job that meets your needs takes time. Even if you don't intend to look for a new career, it's important to know if you can make it without a job. Hence, before you submit your resignation, you should think about the following:
Do you have a foolproof backup plan to keep you afloat while you're unemployed?
Is your safety net large enough to cover your costs at the moment?
Have you discovered a worthwhile opportunity that would warrant quitting your job?
Do you possess the qualifications needed for the position you want? (If not, take some time to upskill and build the essential skill set) Are you ready to go through the laborious process of job hunting?
Do you have the necessary hard and soft skills if you intend to change careers?
Have you updated your social media and resume?
The Great Resignation: What Does It Mean for Job Seekers?
How the great resignation changes the future of remote work, you may ask. The Great Resignation has made it more difficult to get work, hence remote working will be bigger and better in the future. In the past, there was frequently more skill and resources available than there was demand, particularly in nations like India where resources are nearly limitless but employment prospects are few.
Yet, with the arrival of the Great Resignation, a large number of people have left their jobs in the workforce, turning the job market into one where job seekers have the freedom to select the employers they wish to work for rather than the other way around.
The Great Resignation also encouraged businesses to push the idea of remote employment to make things simpler for their staff. This creates an abundance of chances for job searchers by making hiring across borders simple and giving people the chance to work for foreign companies.
Moreover, job seekers feel in charge of the situation. Individuals who had felt at ease working for little pay for 10+ hours a day are now questioning this. Many people now seek work-life balance, competitive pay, and job satisfaction as a result of a change in priorities. Also, because they have the ability to negotiate, job seekers find it simple to locate these qualities in their new positions. The fact that more people are now opting to live more flexible lifestyles is another reason why the post-pandemic work market belongs to the job seeker.
Employees can choose the type of employment position they want to take on and how flexible they want their career to be with work-from-home, hybrid, and remote job possibilities.
How the great resignation changes the future of remote work?
The Great Resignation was most likely brought on by fierce rivalry among workers, as seen by a large number of open positions and a low unemployment rate. The industries most severely impacted by the COVID-19 pandemic, such as hospitality and healthcare, have a tendency to have the greatest openings for employment. Due to the epidemic, some workers have left the workforce while others have cut back on their hours, increasing competition for available workers. The hiring rate has a significant impact on the quitting rate, and it may slow down when the labor market cools down.
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