Is Great Resignation over?

What is Great Resignation?

Great Resignation is the term used to describe mass resignations after the Covid-19 pandemic. The trend had several causes:

• Companies re-entering the operational market were looking to recruit new employees and replace those lost or laid off during the first or second round of lockdowns.
• Many employees felt it was time to move on with their careers as the period of the pandemic let them re-evaluate their goals and career aspirations.
• Companies offering better work-life balance started appealing more to many individuals.
• Low pay and excessive workloads were exposed in some sectors. At the same time, the end of pandemic lockdowns and increased recruitment drive in many industries allowed people to change jobs or even entirely switch careers.
• Many people returned to their home countries.

Companies that could hire as soon as the world started returning to ‘normal’ were the first to capitalise on a changing workforce’s mood. Across many perks, increased salaries, a flexible working environment, a promise of increased employee focus and better work-life balance were the earliest factors to attract new employees.

Is Great Resignation over?

Currently, we are seeing mass layoffs across industries as the economic situation takes its toll. Many companies are on a hiring freeze, waiting for the situation to stabilise. This might indicate that the great resignation has passed, but thinking so would be a colossal error of judgement. ?

• 1 in 5 people considered changing jobs in 2022. According to various surveys, fewer vacancies on the market (at present) did not alter their intentions but only delayed them.
• 20% of those who were looking claimed to be waiting for the right time to jump ship, and they will do so as soon as possible.
• Overwhelmingly, the younger workforce considers dropping their salaries to work for a business with a similar stance on their core values, including ethics, and climate change. This is now a significant factor to consider, and act on while mass resignations are still ‘on hold’.
• While, according to PwC (2022), salary is still a primary driving force in people thinking about switching jobs, the promises made by businesses during the great resignation period often have yet to translate into reality. The ‘grass is not always greener on the other side’, and while for many, the increased salary was the main factor to change jobs, it is not enough to keep them there for long if other elements (i.e., flexible working, career progression options, or learning and development interventions) are not present.

Given that people are willing to cut their salaries to find the ‘ethical match’, and factors like flexibility, trust, and development are right behind the salaries as primary factors for change, as soon as current economic stagnation ends (and it will), Great Resignation 2.0 is almost inevitable.

What do you think can be done?

Companies need to think about people when shaping their employee value proposition.

Flexibility

At the height of the pandemic, employees were trusted to do their job well, often with limited resources and little help or supervision. And they delivered!

Many companies want to return to the ‘old normal’ and scale back their flexibility pledges to improve performance. Flexibility, however, is the second most crucial aspect of why people are still looking to change employment. Suppose the performance is lower than it used to be; in that case, the questions need to be answered to know whether it is because of people working less effectively, employees slowing down on delivery or employers not supporting them adequately. The world of work has changed so people’s needs. Nothing can indeed replace human contact, but at the same time, new setups need to have people in mind. Consult, work together and ensure that no one feels left behind. If post-pandemic working arrangements are no longer working, plenty of options do not include a total return to pre-pandemic ways of ‘doing business’. Still, they can serve as ‘new’ flexible approaches. ?

Learning and development

Lack of career progression and broader upskilling activities might prevent employees from leaving. Focusing on technical capabilities is essential for business and individual expertise, but companies must also invest in soft skills training. The ability to grow personally and professionally is paramount to a happy workforce.

Diversity vs needs

Organisations started to understand and see the benefits of a diverse workforce, but are they doing everything to ensure everyone feels empowered? Increased diversity brings a broader spectrum of needs that the employees might have, whether it comes to the overall employee value proposition, well-being or work arrangements during specific occasions and celebrations. Business Leaders should speak to their teams, collect feedback and act on it.

Salary

While the salary is not everything, and, as discussed, some will take a pay cut to find a better workplace that resonates more with their values, it is still a significant factor. Employees must feel valued and paid comparatively across others and adequately across the region/ sector/ function.

Summary

Great Resignation 2.0 is coming, but it is not bad; it is another re-adjustment for the world of work. If companies can prepare for it now, then the disruption will be minimised. Employees should not feel bad for trying to improve their situation… it seems they don’t.?