Businesses are facing the biggest talent crisis since the 2000 and the 2008 recession. But this time, things are different. Talents are no longer competing for jobs; companies are competing for people.
Microsoft found that as well as 54% of Generation Z workers, 41% of the entire global workforce could be considering handing in their resignation.
Similarly, a UK and Ireland survey found that 38% of employees were planning to leave their jobs in the next six months to a year, while a US survey reported that 42% of employees would quit if their company didn’t offer remote working options long term.
What free trade did to blue collar jobs, remote work will do to white collar jobs. - Naval Ravikant
Surprisingly 4 million Americans quit their jobs just in July 2021. It was shocking to me that despite more than 10.9 million job vacancies the new resignation has happened in April and it has remained in an abnormal manner till to date.
While the highest number of quilting jobs is still the June 2000 when 892,000 workers in food and accommodations quit in the month, 721,000 employees in retails, and thousands of employees in governmental organizations resigned. It is controversial why employees showed a tendency to quit their job?
LinkedIn published an article followed by the result of a survey that 74% agree with an important reason for the great resignation. The findings disclosed that because of the Covid-19 pandemic:
It highlighted seven major trends, which show the world of work has been profoundly reshaped by the pandemic:
It is accepted that different reasons encourage employees to work at home. Despite the advantages of the great resignation for this group of employees, some issues are undeniable:
Harvard Business Review revealed that the rate of resignation in industries and organizations is different. For instance, just 3.6% of healthcare workers quit their jobs. On the other hand, 4.5% of employees of tech companies resigned from their job. It is interesting to know that the great resignation has been witnessed in the fields that had extreme increases in demand during the Covid-19 pandemic.
HR experts in a few high-growth tech startup argued that a data-driven approach can help managers to manage this phenomenon during the Covid-19 pandemic and after this period. There are some beneficial solutions to improve employees retention.
Quantify the scope of the problem in your company and their impacts on increasing the rate of resignation. Following the formula can benefit you in this step to find out the turnover rate.
Number of Separations per Year/Quarter ÷ Average Total Number of Employees = Turnover Rate
Checking your turn over ratio QoQ can help you understand the impacts of the great resignation on the workforce turnover rate and the efficiency of the retention plans.
Working with enough information about what appeared to be a subtle increase in turnover because the nationwide driver shortage was the main reason for costing you millions of dollars in recruitment and training new employees. I believe that quantifying the issue can help both leaders to manage internal purchases and informed decisions around the most effective kinds of retention interventions.
According to Harvard Business Review factors such as compensation, the time between promotions, size of pay increases, tenure, performance, and training opportunities help managers to identify root causes of retention problems. So, you can find out two kinds of data
For instance, remote senior staffs were reportedly much more likely to resign than seniors who know ins and outs of the company and those receiving in-person support.
Now, it is the time of creating highly customized programs as solutions to retain the talents within the company. Providing better individualized perks , enhancing DEI approach (Diversity, Equity, and Inclusion), open communications with leaders and employees and change agents can be suitable practical solutions to tackle some problems associated with employees turnover ratio.
Despite the great resignation, the number of opening positions are drastically raising. 25,400 new IT positions were created in August in the US, while constant resignation was taking place in this field. Some reasons stood at top of the list:
However, stress and anxiety are among major factors in leaving jobs.
The great resignation has happened after 2 decades from last great resignation and the covid-19 pandemic has been the trigger to change the whole workplace and the way we work. Companies designed WFH plans and continuously are trying to improve the work structure by increasing the flexibility. Employers are offering more opportunities for their talents including rotations, perks, raises, relocation, WFH and equal pays, but shifts in benefits and working structures won’t be enough to keep people who want a major change.