The Great Resignation

The Great Resignation

What is the meaning of the Great Resignation? A phrase was recently coined to explain the phenomenon of significant groups of people abandoning their jobs during the COVID-19 pandemic.

As the pandemic spread, an eminent Texas A & M professor saw company tendencies and a lack of personnel and came up with the concept of the Great Resignation. Companies in the United States have reached their maximum levels of available positions, and trends have been analysed and reported. According to the study, companies have indicated that "resignation rates are highest among mid-career employees," and the technology, healthcare, and maritime industries have been hit the worst.

Many people were laid off at the start of the pandemic, but as the economy steadily improves, employees are reconsidering their employment choices.

In the maritime industry, employees are joining in, unhappy with their working conditions during the COVID-19 outbreak. Workers who have been battling gruelling limitations on the frontline have faced several obstacles as a result of the protracted COVID-19 issue.

In seafaring, a slew of difficulties regarding crew change, job security, immunization, and the well-being of seafarers and their families have worsened because of rigorous movement regulations that limit services and support to vessels, as well as the pressure to keep global supply lines moving.

The percentage of sailors who have elected to stay at home and wait out the epidemic or have entirely quit varies from less than 5% to 15%. This may sound insignificant, but it is concerning for these businesses, which had a pre-pandemic attrition rate of 2% or less owing to voluntary resignations.

Let’s know the various reasons behind this.

• Toxic culture: According to the study, "a toxic corporate culture is by far the biggest predictor of industry-adjusted attrition and is 10 times more relevant than remuneration in predicting departure." What precisely does "toxic" mean? According to the survey, failure to encourage diversity, equity, and inclusion; workers feeling mistreated; and unethical behavior were among the reasons cited.

• Job insecurity and reorganization: It's surely no surprise that the fear of losing your job at any moment makes you consider looking for another job. According to the report, "previous research has revealed that employees' negative perceptions of their company's future prospects are a substantial predictor of attrition."
• High levels of innovation: The study indicated that "the more favourably people talked about innovation at their business, the more likely they were to resign." They believe it's because innovation is difficult, especially for workers. While innovation can be exciting and motivating, it can also exhaust people.
• Failure to recognize performance: Employees are more likely to leave organizations that fail to differentiate between strong performers and laggards in terms of recognition and awards, according to the study. This isn't about being paid. It's about being seen and valued for your hard work.

• Poor response to COVID-19: Companies that bungled their way through the epidemic are reminded of the repercussions of their incompetence. "Employees who referenced COVID-19 more frequently in their ratings or spoke negatively about their company's response to the pandemic were more likely to resign."

Retaining experienced, informed, and competent employees is critical. Nevertheless, as organizations evolve and recover from the epidemic, retraining and rehiring are not ideal. This necessitates forethought, investment, and focus. If you believe you are in danger of losing employees, the greatest thing you can do is prepare to transform your business so you are not stuck in the past.

Here are some steps that can be taken to ease the situation.

• Creating a remote or hybrid work strategy as a matter of urgency: The shift away from remote working is one of the most significant factors driving resignations. Many employees value the flexibility and work/life balance that remote work provides and are hesitant to give it up by returning to the office full-time. Incorporating some type of remote work into your company's operations will help you retain employees in the short and long term.

• Developing employee retention and engagement strategy: You'll be destined to repeat past mistakes if you don't comprehend the current condition of staff retention in your company. Employee retention strategies should consider all elements affecting retention in your company, including employee turnover and engagement, as well as any existing retention regulations. Your plan will detail how you can improve, with the goal of making your company a place where people want to work.

A successful staff retention strategy is a plan. And you're going to need one if you want to beat the Great Resignation.

• Improving employee pay, conditions and work-life balance:?In the near term, increasing employee salaries is one of the most effective strategies to promote employee retention. As previously stated, inflation is at historic highs, and employee pay has mostly failed to keep up over the last decade.

You'll be treating your employees fairly and conveying that they're valuable members of the team if you raise salaries to a level that will at least balance the impact of inflation. This is critical to making your company a great place to work.

• Having a clear vision for the direction of the business: This will make employees feel safer by alleviating any fears or uncertainties about the company's health. Assure employees by letting them know where you're investing and that your pre-pandemic business strategies are still on track.

• Mapping out the career paths and potential for growth and development of your staff: Considering what opportunities exist within the company that align with the present team's aims and the company's post-COVID trajectory by ensuring that the team has interesting opportunities and that their devotion is rewarded.

There's no denying that business has been tough in recent years, and the Great Resignation is throwing yet another dilemma at executives and HR professionals at a time when many are already overburdened.

However, by adopting a careful and courteous strategy that prioritises employees' wants and goals, one should be able to weather the storm.