The Great Resignation, also known as the Big Quit, is the ongoing trend of employees voluntarily leaving their jobs, from spring 2021 to the present, in response to the COVID-19 pandemic. The term Great Resignation was likely coined by Anthony Klotz, a professor of management at Mays Business School of Texas A&M University.
According to the U.S. Bureau of Labor Statistics, approximately 4 million Americans quit their jobs in July 2021. The U.S. Bureau of Labor Statistics reported this as the highest quit rate in 21 years. Resignations increased in April and remained abnormally high in last 2-3 months, with a record-breaking 10.9 million vacant jobs at the end of July this year.
According to Microsoft’s 2021 Work Trend Index, more than 40% of the global workforce are considering quitting their job in 2021. According to a PricewaterhouseCooper survey conducted in early August 2021, 65% of employees said they are looking for a new job and 88% of executives said their company is experiencing higher turnover than normal.
In October 2021, the U.S. Bureau of Labor Statistics reported that food service workers’ quit rates rose to 6.8%, which is well above the industry average of 4.1% over the last 20 years and still higher than the industry’s quit peaks of 5% in 2006 and 2019
There are certain factors that can help us to understand why the increase in resignations has been largely driven by these mid-level employees. First, it’s possible that the shift to remote work has led employers to feel that hiring people with little experience would be riskier than usual, since new employees won’t have the benefit of in-person training and guidance. This resulted in greater demand for mid-career employees, thus giving them greater leverage in securing new positions.
For some workers, the pandemic helped them to understand their main priorities, encouraging them to pursue a ‘dream job’, or transition to being a stay-at-home parent. But for many, the decision to leave came as a result of the way their employer treated them during the pandemic. For instance, nearly 7 percent of employees in the “accommodations and food services” sector left their job in August as their employers did not provide any financial assistance during the pandemic period.
The way for employers to survive and keep their best employees during this Great Resignation period is to show an unnatural adaptability to see people, listen to people, adjust to people and meet them where they are, which will help employers to curate an environment of motivation and independence which employees currently crave for.
There is also a section of few employees who are leaving their jobs as pandemic has allowed them to make greater savings and they are now seeking their entrepreneurial dream on the back of financial independence which they have build up during this period. Many employees have also identified different passive income schemes on which they could rely before they get back into the rat race of the corporate world.
It’s has become now compulsory for companies to make serious investments in their employees’ wages, opportunities, and overall wellbeing. Companies with better working environment will face minimal damages compared to companies/employers who were too focused on increasing revenue than employee welfare and retention.
Source: U.S. Bureau of Labor Statistics, Industry Articles, HBR
