The "Great Resignation" is here now but WHY?

According to a recent CNBC Article, 95% of workers are now considering changing jobs. Ninety Five Percent. If you talk to 100 people who work, 95 of them are considering changing jobs... 92% of workers are even willing to switch industries to find the right position. In talking with business leaders, many will tell you that their biggest issue is maintaining staffing levels so that their business can function. In April, a record 4 million employees quit while in May, 3.6 million employees quit. The "Great Resignation" is here and companies are struggling to backfill the workers who are leaving.?Below, we are going to look at some of the reasons why this is happening:

Burnout:

The last 16 months have pushed workers outside their comfort zone in many ways. Workers have faced changing job responsibilities, furloughs, layoffs, working at home, unemployment, rising COVID in their community, social pressures, longer work days, return to the office, and many more emotional challenges that most workers have never dealt with before. Workers are tired. Many have not taken vacations at scale. When the computer dings with an email at 9pm, employees are answering the email from their home. ?Light industrial workers are being pushed by the labor shortage. Many are working longer hours under greater pressure to produce. Overall, the workforce is fatigued.

Loyalty:

Much like during the Great Recession, workers eyes were opened to a company’s loyalty to their employees. Anytime a company has a layoff or furloughs, the assumed trust between employee and employer is damaged. No matter how well a company messages the reasons behind a layoff or a furlough, the employee naturally questions their own job security. This break in trust has encouraged many workers to start their own business. Some have looked for positions with companies that didn't have a furlough or layoff. Either way, when the trust is broken, change is inevitable.

Lack of Growth Opportunities:

Exit interview for departing employees cite lack of growth opportunities as one of the top reasons that workers are looking for new positions. In a virtual setting, many companies slacked on the basic review and career pathing functions of leadership. If an employee does not see a path for growth or is not afforded the opportunity to discuss their vision for their future with a company, they are more likely to jump ship.

Return vs. Reset:

Companies want employees to return to the 2019 normal but employees are looking for a reset on the whole. Dress codes, hours of operation, work/life balance, remote work, and other changes to the norm are now expected by employees and job seekers alike. Employees were trusted to work hard from home when the world shut down in March of 2020. Many times, productivity even increased with a remote workforce. As such, employees want to maintain that flexibility because they believe they have earned the trust of their employer. That said, culture is difficult to maintain in a virtual setting. Many companies want (and some are forcing) their employees to return to 5 days a week in the office for their white-collar workforce. Because of the return to the office, workers are open to new opportunities that afford them the ability to work remotely. ?

So, what can companies do to combat the Great Resignation? By far the most cost-effective way to combat the Great Resignation is retain current employees. Companies would do well to understand why their employees choose to go to work for them each day. Progressive organizations are doubling down on career pathing with their workforce. Some organizations are offering training and upskilling their workforce to invest in their people. ?As the travel restrictions lift, employees will want to take breaks this summer at a greater scale than in 2020. ?Either way, with the amount of liquidity that many companies have, workforce change is inevitable and organizations should plan for that change.?