The Great Resignation began in 2021 and has continued into 2022, according to reports. In April 2022, 4.4 million Americans quit their jobs despite promised professional development in their companies. Around 4.3 more million Americans resigned in May, and on and on. The record for most resignations was in November 2021, at 4.5 million.
With so many people quitting around the same time, HR management teams face unprecedented challenges and costs.
Many factors led to the Great Resignation, which was triggered by the pandemic.
While the world tries to move on and adapt to the new normal, many are facing this new era with vastly different priorities. Now, many employees prefer to stay at home, knowing all too well that they can maximize productivity even when not at the office. Given a taste of freedom, flexibility, convenience, and cost-saving benefits of remote work, they no longer want to settle for pre-pandemic on-site setups.
The peak of the pandemic in 2020 was a stressful time for all. Organizational development was hampered, and many companies had to lay off workers. Those who were lucky enough to keep their jobs had to take on responsibilities left behind by their former colleagues.
Despite the additional work, some workers were not given additional pay—employers used the lack of profits due to the pandemic as an excuse for such mistreatment.
Stay-at-home mandates surprised many, so companies needed to adapt to the new situation immediately. Hardware and software solutions for remote work setups were deployed as organizations tried to adapt to a new environment. The problem is there was no time for learning and development or training.
With employees forced to adapt to unfamiliar technology, some say they weren’t armed with the needed workplace learning and skills. The inadequacy prompted many to join the Great Resignation of 2021 and 2022.
With a massive turnover of employees, companies were forced to release large sums of money to cover the mandated benefits. Monetary payouts include final pay, overtime, sick leaves, and vacation days converted to cash and pension benefits. In some cases, there were also health and life insurance benefits.
These large payouts negatively affect many companies’ coffers. And such expenses can only be avoided when employee retention becomes a priority.
Now that you know the problem, it’s time to consider the solutions:
Most companies were severely affected by the pandemic. Re-evaluate your finances to ensure you have enough money for new hires and provide additional benefits to keep your current pool of employees.
In the post-pandemic world, competitive benefits don’t only refer to high salaries and health insurance. There’s also the workplace arrangement. A Gallup survey revealed that 59% of employees prefer a hybrid arrangement where there are days they work in the office and other days they work remotely.
Offering flexible work setups and addressing employee concerns will certainly attract new employees and encourage current ones to stay put.
Career development opportunities are even more crucial in today’s environment, where employees need to learn new skills to transition into a more technology-based workplace.
Companies should also support employees that want to pursue additional or higher education. Financial assistance and flexible hours are good places to start. Investing in your employee’s learning and development will benefit your business in the long run. Consider a digital learning platform such as UPfolx to meet the different learning needs of all your employees.
Millions of employees are experiencing burnout. They feel overworked and underpaid, with many having to take on more responsibilities after their colleagues’ layoffs and resignations.
Management teams must reassess the roles and responsibilities of their employees and adjust them to protect their well-being.
Companies looking to replace the employees they lost should be cognizant of changing attitudes regarding labor. By addressing all the reasons why the Great Resignation happened, retaining the workforce becomes easier.
Resources:
Fox, July 12, 2022, Even When the ‘Great Recession’ Wanes, the Workplace Changes It Spurred Won’t…, CNBC, accessed September 1, 2022 <https://www.cnbc.com/2022/07/12/great-resignation-workplace-changes-are-lasting-says-anthony-klotz.html>
Pew Research Center, December 9, 2021, How the Coronavirus Outbreak Has—and Hasn’t—Changed the Way Americans Work, Pew Research, accessed September 1, 2022 <https://theconversation.com/survey-shows-some-bosses-are-using-the-pandemic-as-an-excuse-to-push-workers-159417>
Ross & Lewchuk, May 5, 2021, Survey Shows Some Bosses Are Using the Pandemic As an Excuse to Push Workers, accessed September 1, 2022 <https://theconversation.com/survey-shows-some-bosses-are-using-the-pandemic-as-an-excuse-to-push-workers-159417>
Agrawal et al., May 7, 2020, To Emerge Stronger From the Covid-19 Crisis, Companies Should Start Reskilling Their Workforces Now, McKinsey, accessed September 1, 2020 <https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/to-emerge-stronger-from-the-covid-19-crisis-companies-should-start-reskilling-their-workforces-now>
Wigert, March 15, 2022, The Future of Hybrid Work: 5 Key Questions Answered with Data, Gallup, accessed September 1, 2022 <https://www.gallup.com/workplace/390632/future-hybrid-work-key-questions-answered-data.aspx>
WebMD Editorial Contributors, December 3, 2020, Burnout: Symptoms and Signs, WebMD, accessed September 1, 2020 <https://www.webmd.com/mental-health/burnout-symptoms-signs#>