The Great Resignation
Overview of Topic
Due to the increased cost of living and the effects of the COVID-19 pandemic, many businesses have faced difficulty in the recruitment market as they aim to remain competitive in both retaining and hiring new staff. Many employees are also voluntarily leaving their jobs, due to a mixture of both social and economic factors.
This topic will you if you are an employer facing the current problems posed by the competitive recruitment market. I will be sharing tips on how to hire and retain staff by offering incentives and help with additional motivation to work for your business.
Current Stats and Causes Behind the Great Resignation
The COVID-19 pandemic has affected the job market in several different ways over the last few years. Initially, due to the immense financial strain on businesses, many workers were laid off leading to high rates of unemployment and a low quit rate from workers who were wary of a career change that might leave them out of work in this period of uncertainty. As the pandemic continued, many workers have adjusted to working from home and enjoying a better work-life balance. Many are now seeking out roles that allow them to enjoy these benefits, as well as higher wages which help combat the increased cost of living.
The ’Great Resignation’ has mainly been caused by employees who aren’t living paycheque to paycheque, so, therefore have more economic freedom to try out a change in career or search for a better role. It has caused many companies to re-evaluate their approach to the job market, as they attempt to offer incentives to secure and maintain talented employees.
Maintaining Workers
Many employees reported the reason for leaving their job was as a result of feeling undervalued by their employers. The pandemic led to many companies laying off workers, which had unintended long-term consequences. Whilst the initial layoffs were because of the financial impact of the lockdowns at the start of the pandemic, it also highlighted to workers who remained in their roles the fragility that came with their jobs. Working in an unsupportive environment led to many employees looking for alternative work or even a career change where they would have better job security and support in their work. In contrast, companies that found ways to support their employees during the pandemic have found it easier to retain staff in the long run. The pandemic also led to many people thinking about their lives and what they want to achieve. This has led to many workers thinking about their job satisfaction and career path, and how they are best able to achieve their goals.
Whilst there is sometimes little to be done if an employee wants a complete career change, companies can still engage with their workers and highlight the benefits of working for them, in addition to showcasing routes for progression and career advancement within in the company. This will help quell fears of stagnation in the company that employees might be having during this period.
The relationship between employers and their employees has been tested during the pandemic, with many workers evaluating what they prioritize from this relationship. Many employees expected employers to help alleviate their concerns during this time, especially when they saw other companies beginning to offer flexibility in their employee’s schedules and the ability to continue working from home as pandemic restrictions eased. This shift in expectation by employees is one the major factors behind the Great Resignation and it is something that companies must adjust to.
During the period of social and economic hardship caused by the pandemic, workers have focused on ensuring that they are valued and listened to in their place of work and therefore the expectation of what their employer should provide to them has changed. Whereas a good workplace culture was always expected, it has now risen higher in many worker’s priorities when looking for work. Companies need to evaluate their workplace and their relationship with their employees, to ensure that is strong and that their employees are valued. This will demonstrate to both new and existing employees that the company is working towards tackling the difficult times alongside its employees, so that all will be able to work through it.
Future of the Job Market
The impact of the Great Resignation in the short term will see many companies dealing with shortages and a competitive labour market. However, in the long term, there will be a change to a number of things as a result of this economic trend. Companies will have to focus on improving their culture and workplace in order to attract employees to work for them, and in order to deal with the increase in people who are looking for more at their workplace than a paycheque. It is important for companies to focus on maintaining their staff, as employee turnover will cost lots of money, in addition to the lost productivity of not having stable staff. Companies will need to see that investing in employees will be worthwhile in the long run, as without it they will face disruption and will fall behind their competitors.
