The Great Resignation - will the cost of living crisis stop it?
The Great Resignation phenomenon was on everybody's lips in 2022. Following the once-in-a-lifetime changes brought on by the COVID-19 pandemic among others, employees around the world had started expecting more from their employers. Remote and flexible working, casual dress code, well-being initiatives, and most significantly: higher pay[1] - these were some of the aspects that became essential in a post-Covid job search, rather than rare benefits like before.
What sparked the Great Resignation in 2022
Employees have seen what was possible when the whole world had to adjust to abnormal conditions. When lockdown time has come to an end, it became virtually impossible for managers to rationalise going back to the old ways: strict office hours in smart business clothes and expecting workers to be grateful just for having a job.
But now, in January 2023, the perspective of leaving a job with no alternative in immediate sight or "just" seeking a better working environment seems insane, especially amongst the cost-of-living crisis and skyrocketing prices of electricity and other necessities. The latest studies have shown that UK employees are planning to stay afloat by switching off their heating entirely (57%), reducing food bills (43%), and cancelling holidays (26%). Another 24% will be forced to use their savings[2]. Is the crisis going to stop the Great Resignation for good?
Will 2023 bring 'the great return'?
What the economists are seeing is the possibility of 'the great return'[3]. We might see over-50s and other workers who left employment since the pandemic coming back to work in order to get by. According to the Office for National Statistics, there are almost 400,000 more economically inactive adults aged 50 to 64 now than in the pre-Covid period. While this could be a positive trend due to some of this demographic leaving workforce partly due to rapid digitalisation during the pandemic, what's concerning is that these desperate times might undo all the good that was done, including allowing workers more flexibility, prioritising their well-being, and generally giving them more freedom to work to the best of their potential.
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It's not over just yet
The general consensus amongst researchers seems to be that the Great Resignation trend is not going to just halt instantly, however. While the anxiety caused by financial hardship will impact some by making them stay at their current jobs and work harder in fear of losing them, for others it will provide even more motivation to search for a new, better opportunity that will bring them improved security. While perhaps we won't see as many employees just quitting their jobs before securing the next position as in 2022, we will most certainly carry on seeing plenty of movement on the job market in search of better pay and working conditions. It's never been as important for employers to do their absolute best to retain employees.
It's certainly going to be interesting to see what 2023 brings. If you're considering a new step in your career in these uncertain times,?browse our jobs?or don't hesitate to?get in touch?with our consultants.
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