The "Great Resignation", is now the time to change jobs?

Whether you call it the “the Great Resignation”, “the Great Reset” or “the Great Re-shuffle”, whatever your narrative the crux is that the labour market is on the move.

2021 marked an exodus of people leaving their jobs in the search for better opportunities. During times of uncertainty, people tend to stay put not knowing what the future holds.?Whilst the first year of the Covid-19 pandemic saw people hold fast in their current job positions (where they could), 2021 witnessed a different turn of events; even though the threat of Covid was still very present, the labour market began to shift.

So why, during a time of uncertainty is there such a high level of turn over???

Time to Think:

The silver lining of Covid for many people was that it gave us the opportunity to re-asses our home / work goals, re-align our values within this space and empowered us to make the changes that would facilitate these goals.?

“Flexible working” has become a buzz word in the past year but for a reason. Endless commutes, long hours and in-flexible working hours is quickly becoming seen as “old fashioned” and unnecessary. Flexible working allows for a better work / life balance, and some people are swapping the feeling of burnout for a better home life – even if it does mean taking a pay cut. In a recent study , 80% of respondents said they had experienced burnout within their careers. In contrast, 63% said they were more motivated and over half described themselves as happier with work since the pandemic (even though on average people were working 9.2 additional unpaid hours per week whilst working from home rather than the average 7.6 hrs from before).

In addition, most people would be looking at saving money by flexible working – taking away expensive commutes, childcare and high inner city rental prices. Another study found that that over the course of a year, remote workers saved an average of ￡2,900 -￡7,300 a year on commutes and operating costs (work clothing, eating out, etc).

Other people are searching for careers that offer more stability and freedom, especially within those sectors hit the hardest by the pandemic (such as hospitality). According to LinkedIn , workers entering into Software and IT services have more than doubled year on year. A sector which felt little effect of the pandemic and historically offers remote working prospects; even opening the doors to global job opportunities allowing employees the possibility to work and live anywhere they like (within internet reason).

Whether it is for more flexibility, a pay increase or additional stability workers are on the move as people search for careers that are better suited to their needs. So what effect is this taking in the job market?

Affects of the Great Resignation:

Recruiters and job platforms have seen a rise in job vacancies. With people taking early retirement, moving to become self-employed, taking extended sabbaticals or just reconfiguring their career, there is a resulting job shortage making this a candidate market. Candidates can leverage this “workforce shortage” by seeking extra pay as companies compete for talented and experienced employees. Similarly, this movement has created somewhat of a gap in senior roles and as a result it is easier to move up the career ladder than in previous years.

Arguably, unlike previous historical labour movements, this “Great Resignation” is characterised by a mindset – it’s not only the search for higher wages but also the hunt to find employment with a company who shares the same values, and company culture as you. Mental health and wellbeing is also high on people’s priority lists along with company recognition and appreciation of home life balance. In this candidate market, where skilled workers have lots of opportunity to move and grow, in order to attract or retain staff businesses are quickly re-assessing their remote working and benefits structure to fit in with market trends. Without this re-alignment they risk being left behind and sacrificing their own skilled workers.

But for how long will this last? As businesses get their grounding and finalise their own benefit strategies, the transition period will begin to slow as people who have moved to better accommodate their needs settle into their new roles leaving fewer reasons to further jump. As with all large shifts within the labour market the trend will come to an end, however what we hope will stay is the acknowledgement that mental health, and wellbeing are important factors that workers are willing to fight for.?