The Great Resignation: A Global Phenomenon Changing the Future of Work ??????

Introduction

Hello, corporate professionals! The "Great Resignation" is a term you've probably heard a lot lately. Initially coined in the United States, this phenomenon has gone global, affecting the way we view work, job security, and career growth. Let's delve into what's driving this trend and what it means for the future of work. ??

The Genesis of the Great Resignation ??

The term was first used to describe the tens of millions of Americans who changed jobs or quit altogether during the pandemic. The trend has been on the rise since June 2020 and has now spread to other developed economies. According to the OECD, there are about 20 million fewer jobs across its 38 member countries compared to before the pandemic.

The Numbers Speak ??

In November 2021, 4.5 million people in the United States quit their jobs—an all-time high. In the U.K., 100,000 new workers were added in February 2022, but that still leaves 1.3 million vacancies unfilled.

The Four Pillars of the Great Resignation ???

Organizational psychologist Anthony Klotz identified four reasons behind this phenomenon:

1. Backlog of Resignations: People delayed job changes due to the uncertainty at the start of the pandemic.
2. Burnout: Extended working hours and additional responsibilities led many to seek a break.
3. Flexibility: The ability to work from home influenced some decisions to quit.
4. Pandemic Epiphany: The crisis led many to reevaluate their career paths, seeking more meaningful work.

The Financial Cushion ??

Stimulus checks in the U.S. and job retention schemes in Europe and Asia gave workers the financial buffer they needed to quit. Many, like Chloe, an architect who decided to quit her job, found that not commuting and going out led to increased savings, making the decision less financially risky.

The Employer's Dilemma ??

Employers are now grappling with how to retain talent. Research shows that a sense of belonging and company purpose is as important as pay. In the U.K., almost a quarter of employees plan to move jobs within the next three to six months.

The Wage Factor ??

To attract new talent, many managers have been forced to offer higher salaries. In the U.S., wages have gone up at an annualized rate of roughly 6%.

Conclusion ??

The Great Resignation is more than just a trend; it's a shift in how we view work and what we expect from our careers. Whether it's the search for more meaningful work, better pay, or more flexibility, this phenomenon is changing the landscape of employment globally.