The Great Resignation: Why Employees are Quitting and What Companies Can Do to Thrive

The Great Resignation: Why Employees are Quitting and What Companies Can Do to Thrive

The Great Resignation has been a topic of discussion for many months, and it has already had an impact on many businesses and people's lives.?

The resignation rate has been steadily increasing. In fact, the average monthly quit rate grew by 0.10 percentage points per year from 2009 to 2019. Then, in 2020, the resignation rate slowed as people clung to their employment in larger numbers due to the uncertainty caused by the COVID-19 epidemic. That pause didn't last long. As stimulus checks were distributed and some of the uncertainty dissipated in 2021, a record number of workers resigned, resulting in the so-called Great Resignation.

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Image from Harvard Business Review


What does this mean for your business?

If The Great Resignation continues, you may find yourself struggling to find qualified people for your open positions. This could lead to not being able to meet deadlines and keep up with demand. You may also find that clients will become frustrated with longer response times and lower quality of work from employees who are stretched thin by increased workloads.

A great deal of uncertainty remains at this point—we can only speculate as to what will happen next. However, it's clear that there will be major changes coming soon, which means that businesses will need to adapt quickly if they want to survive this tumultuous time period.

Luckily, I have prepared some great, effective tips to help you stay ahead of the curve in the months ahead. Read on to find out.


What is The Great Resignation (definition, stats, predictions)

The Great Resignation is a phenomenon where employees have quit their jobs en masse, caused by record-breaking resignation rates across industries. The phenomenon has been sweeping the world, and it has caused companies to lose billions of dollars in revenue.?

Peaking at 4.4 million resignations in December , the year 2021 just concluded with the highest monthly average resignations of 3.95 million in the past decade.

In a year, job vacancies grew from 6.77 million to 10.56 million , just a little lower than the 11.1 million reached in July of 2021.

This huge problem rattles a lot of industries, as economists report that it shows no signs of stopping or even slowing down in the next few months.?

I understand how aggravating that can be, but I'm here to help you seek solutions based on my years of experience and expertise as a business owner.


Driving Forces

The following are some of the most powerful driving forces at work in The Great Resignation; knowing this information will enable you to better handle how The Big Resignation is affecting your company and what you can do to mitigate its effects.

1. Remote Work Opportunities (Vs. Return-To-Office Orders)

Work has changed dramatically in the last two years, as many people have moved to remote work, changed careers, or stopped working entirely. Flexibility , on the other hand, appears to be favored by the majority of workers.

While parents are at the forefront of re-establishing work-life balance due to home-quarantine restrictions, more and more employees are also opting to look for flexible remote work opportunities. This movement has been further catalyzed by return-to-office orders in some companies. While others decide to wait out the pandemic, some employees have already quit and transferred to workplaces that promise remote and hybrid work even in the post-pandemic era.

2. Demand for Better Compensation

More and more employees are demanding higher pay and more benefits from their employers. Better jobs with higher pay are also coming up, causing people to change jobs or start looking for a new one.

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This tweet points out that companies with better compensation have lower churn rates.

3. Burnout

The global prevalence of anxiety and depression soared by a staggering 25% in the first year of the COVID-19 pandemic, according to a scientific brief provided by the World Health Organization (WHO) in early March 2022. According to The Lancet, the pandemic has resulted in a whopping 53 million new cases of severe depression around the world.

As a result, employees are putting their physical and emotional health first—so they're looking for jobs that suit all of their needs, both within and outside of the workplace. People desire healthy experiences and are willing to abandon professions that jeopardize their well-being.

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Here's an opinion that resonates with others who have voiced their opinion on The Big Quit. The pandemic has given workers the space and chance to address burnout that has existed since pre-pandemic times.

4. Return-To-Office Orders

Companies issuing return-to-office orders have experienced a backlash from a lot of employees and the general public for putting people’s lives at risk. More prevalent now, resistance has also come in the form of employees wanting greater flexibility and work-life balance, which they can get from remote work. People no longer want to spend copious amounts of time and money on the daily commute to and from the office.

Even if there are employees who agree with going back to the office, making it mandatory has become an issue that has led to people quitting in droves.

5. Toxic Culture and Disengagement

Toxic culture has always led to disengagement in a lot of employees, and this contributes to quitters. Furthermore, research actually shows that more than other factors, a toxic culture is cited as the biggest contributor to employee attrition during The Great Resignation. As of September 2021, culture is 10 times more likely to affect churn rate than compensation.

Especially among the younger generations, such as Gen Z, employees want to feel supported and contribute to something larger than themselves. If the company they’re working for isn’t providing these opportunities or the inclusivity and positivity they want, they have been compelled to look elsewhere.

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This user from Twitter shares an opinion held by many others regarding toxic cultures being the root cause of The Great Resignation.

6. Pandemic Epiphanies

With everyone’s life at risk on a daily basis, people have experienced what can be called “pandemic epiphanies .” Such thoughts have led some employees to make decisions in their careers and lives altogether. Young boomers have opted for early retirement, while other generations have decided to quit their jobs and add to the statistics of The Great Resignation, due to the lack of purpose or meaning they find in their jobs.


What Can You Do?

We all know that one of the most stressful parts of being a business owner is dealing with employee turnover. It's hard for us to keep up with all of the new hires and even harder to keep track of why and when people quit.

As a business owner, there’s a good chance that The Great Resignation has impacted your business one way or another. You must look for resolutions that will help your business retain its employees. Here are seven tips for you!

1. Increase Flexibility

Schedule flexibility is one way employers can help employees manage their mental health. It's important to remember that employees are not just workers; they're people who have a life outside of work.?

This means that if your employee needs to leave early on the day they have a doctor's appointment but they still get their work done, you should allow it. If they need to work from home because their child is sick and needs care, let them do so!

It's also important for employers to give employees options for working remotely or in a hybrid setting when possible. This can help prevent anxiety and depression from starting in the first place. In fact, according to PwC’s Global Workforce Hopes and Fears Survey 2022 , 45% of the respondents report less satisfaction with their job than those working in hybrid or fully remote work settings.

You can also consider increasing or introducing a grace period for employees. Maybe let them take more breaks in a day or lessen their workload. This may seem like you’re letting your productivity suffer, but it really isn’t. Everyone’s productivity is suffering due to the pandemic.

If you overwork your employees and yourself, your business’s operation may actually halt when critical members of your team decide to quit due to burnout and resentment. A little more breathing room can lead to a much longer life for your entire business.

2. Ask for Feedback

Check-in on your employees. Remember that they’re struggling too! They could be having a hard time being isolated from everyone else. Ask if they’re having trouble working with others remotely. Perhaps they feel challenged with remote work and the level of self-discipline it requires. Maybe they need more resources than what they currently have access to.

This could also be your chance to directly ask them what they want from the organization. Especially if their productivity already shows signs of struggle, make sure you ask them if they need help.

You can even directly discuss with them that people are quitting everywhere and you’d like their help to avoid that in your team. Doing this won’t just save your business from The Great Resignation, but also develop a much better relationship and synergy between you and your employees.

3. Automate More

Remote work has become normal. This has caused a lot of productivity apps to pop up left and right with their unique automation functions. You, too, can leverage this for your business!

Automating tasks could mean you’ll have room for a few resignations here and there. Finding the right apps can also increase flexibility for your employees, lightening their workload and speeding up processes.

Using AI and automation to make your business better will benefit you during these troubling times and even after the pandemic subsides.

4. Improve Your Employee's Compensation Package

When we are talking about improving your employee's compensation package, we are not just talking about the monetary aspect of it. It is also very important to look at the non-monetary benefits that you can offer to employees.?

For example, you could offer extra vacation time or flexible work hours as incentives for good performance over a certain period of time. You can also offer really great health insurance, retirement plans, dental plans, disability insurance, and much more. Employees nowadays are fully expecting an employer’s compensation package to over basic benefits and a competitive salary. So, what are you going to add to your compensation packages to stand out??

You can offer your employees free lunches or snacks during work hours. In fact, this is a very common practice among many companies , and it shows that they care about their employees' well-being.

Another example that you can consider is giving your employees gym memberships so that they can work out during lunch hours or after work. This is another way for companies to show that they care for their employees' health and well-being, but it also helps them stay fit and healthy, which will improve productivity at work as well.

Don’t be afraid to shake it up. Be unique in the benefits you offer. Some companies do company retreats, offer on-site or off-site childcare during working hours, and mental health days.

The possibilities are endless here—just make sure whatever you choose fits with your company culture!

5. Give Your Employees a Purpose

If you want to keep your employees happy and satisfied, then you have to give them a purpose.?

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When employees don't have a clear sense of what their role is, it's hard to know whether or not they’re making an impact. Do your employees feel tied to the core values and mission of your company? When they do have a sense of purpose, it's much easier to feel like they’re doing something that matters—and that makes all the difference in whether or not they’ll be happy at work, and stay with you.

How do you give people a sense of purpose?

Make sure they know what they're working toward. Do they have goals that are clearly laid out? Are those goals achievable? Is there a timeline for achieving them? If not, then these need to be addressed before moving forward with any other steps.

Encourage open communication about progress and setbacks. No one wants to be left in the dark about what's going on at work—especially if it means they're falling behind schedule or missing deadlines. It's up to you, or their managers, to make sure that everyone is informed about where they stand with their projects, so no one feels like their time is being wasted when there's an issue with progress being made on time.

Creating an environment where your employees feel appreciated, supported, and challenged will help you attract top talent—and retain the people you already have!

6. Make Skill Development Accessible

Skill development is the key to keeping employees happy and engaged in their work. It helps them feel that they are growing, and it gives them the opportunity to learn new skills that may help them move up in their career.

Make sure that there are opportunities for training available. This can be in the form of formal training programs, but it doesn’t have to be. Employees can also learn by watching online videos that are relevant to their job roles, volunteering at events, taking on new projects, or reading books written by experts in the fields that interest them.

Employees feel motivated when they know that there are opportunities for them to learn new skills and improve their performance at work. This will encourage them to stay with your company for a long time instead of looking for another job elsewhere where they might not have access to such training programs and professional development opportunities.

7. Hire Virtual Assistants

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If you really need people, I recommend hiring virtual assistants for any work that can be done remotely. Especially if you outsource to offshore virtual assistants, you can even experience cost savings !

Virtual assistants are professionals who remotely render their services to clients, mostly business owners. Their services come in so many different forms, like office administration , real estate transaction coordination , bookkeeping, digital marketing, content production, social media management , and so much more.

Virtual assistants can safeguard your company from The Great Resignation due to their lower wages, flexibility, and cost savings they give you. Plus, when you hire a virtual assistant, you won’t run as high of a risk of an employee wanting to quit for the reasons U.S. employees are using in the Great Resignation.

If there’s work in your company that can be done remotely, there must be a virtual assistant with the skills you need .


Key Takeaway

The Great Resignation has impacted businesses in many ways. It has given them the initiative to take a step back and look at how they can improve their operations and workforce over time.?

Virtual assistants may be one of the most effective strategies to mitigate the effects of The Great Resignation. This enables you to hire more people without having to rent additional office space or purchase additional equipment. They not only take up time that would otherwise be spent on administrative activities, but they also let you focus on higher-level responsibilities such as managing your teams or departments and identifying new opportunities for growth.

“The cost of operation and reliability on global talent will be the driving factors in increased outsourcing in 2022.” -Pavel S.

The Great Resignation has left many companies wondering how to respond and adapt to the changing labor demands. That’s why it’s important to not only look at your current strategies for recruitment and retention, but look to alternative ways to source labor.

If you’re interested in getting in contact with me to learn more about my thoughts on The Great Resignation and virtual assistants, then comment down below, DM me, or visit my website to get in touch.

If you enjoyed this article and found it helpful, please support me by subscribing to my LinkedIn newsletter ! I will be posting every other week on business growth topics.

Francine Dohl

Sr Loan Processor at Cornerstone Home Lending, Inc.

2 年

Very interesting insight. Good information

Tristan Ahumada

310-356-3715 ?? CEO | Lab Coat Agents Co-Founder | A Brilliant Tribe | Realtor and International Speaker | Y Realty 01373444

2 年

Great read! Thank you.

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