{"id":8224,"date":"2022-07-12T14:45:09","date_gmt":"2022-07-12T11:45:09","guid":{"rendered":"https:\/\/www.efrontlearning.com\/blog\/?p=8224"},"modified":"2022-07-12T14:45:09","modified_gmt":"2022-07-12T11:45:09","slug":"impact-of-the-great-resignation","status":"publish","type":"post","link":"https:\/\/www.efrontlearning.com\/blog\/2022\/07\/impact-of-the-great-resignation.html","title":{"rendered":"The Great Resignation shapes the future of work"},"content":{"rendered":"
Everyone loves talking about The Great Resignation.<\/p>\n

It\u2019s a threat. It\u2019s an opportunity. It\u2019s a cautionary tale when discussing employee retention, or a wake-up call to focus on crafting a\u00a0healthier company culture, making a firmer commitment to DEI, and investing in employees\u2019 well-being.<\/p>\n

And while all these approaches certainly have merit, there\u2019s one problem: The Great Resignation\u2026 doesn\u2019t seem to exist.<\/strong><\/p>\n

At least not as the COVID-related, rapid onset phenomenon we understand it to be. When we look at the data closely, it seems like a more accurate description for this phenomenon would be, \u201cThe Proportionally Increasing Resignation, Retirement, or Reshuffle.<\/em>\u201d<\/p>\n

Which, understandably, is less catchy.<\/p>\n

That being said, even if what we call The Great Resignation (a term coined by Dr. Anthony Klotz of Texas A&M University) is in reality a cluster of contributing factors, it still has a real impact on companies and employees alike.<\/p>\n

Here\u2019s what you need to know about it\u2014and how to ensure your company can navigate it.<\/p>\n

The Great Resignation: Myths\u00a0vs numbers<\/h2>\n

People always quit their jobs\u2014some to find new ones, some to start their own business, some to retire. So what changed? According to the Bureau of Labor Statistics, a record number of workers quit their jobs in 2021: 4.5 million in November 2021<\/a>, to be exact.<\/p>\n

Because this coincided with the second year of COVID-19, and with many employees \u2014particularly women<\/a>\u2014 having to stay home to take care of sick family members or help with homeschooling their kids, it was thought that the Great Resignation was caused by the pandemic. But new research shows it\u2019s more of a correlation than causation<\/strong>.<\/p>\n

When Harvard Business Review collated the data on total employment from 2009 to 2019<\/a>, a steady upward curve in resignation numbers immediately became apparent. Every year, there\u2019s been an increase that amounts to 0.10% on average each month. But in 2020, precisely because of the uncertainty the pandemic brought, that number dropped: people were less inclined to make career-changing decisions with so much at stake.<\/p>\n

As such, when the resignation numbers picked back up in 2021, continuing to follow the more than a decade-long upward curve, the contrast seemed jarring.<\/p>\n

How The Great Resignation has changed the landscape of work<\/h2>\n

It\u2019s not just that people are quitting their jobs\u2014it\u2019s also what they\u2019re doing afterward that seems to be changing.<\/p>\n

A Pew Research Center analysis<\/a> found that US adults aged 55 and older are retiring in increased numbers than they did before the pandemic. And the U.S. Census Bureau saw a huge spike in new business applications<\/a> from 2020 onwards as more and more people opt to stop being employees and start their own business, instead.<\/p>\n

According to the Labor Department\u2019s JOLTS report, companies are struggling to attract and retain employees. Job openings hit a record-high<\/a> at 11.5 million in March.<\/p>\n

The increased rates in retiring, reshuffling, and reconsidering are affecting some industries more than others. A TalentLMS and Workable survey shows that 72% of employees working in tech\/IT are thinking of quitting their job in the next 12 months<\/a>.<\/p>\n

Interestingly enough, all this results in employees having more options\u2014and being able to negotiate their needs better. And with so many people on the verge of burnout or experiencing stress due to the pandemic, company culture and work environment become major driving forces behind people\u2019s decisions to leave their jobs. A recent study found that toxic work culture, job insecurity, and a lack of recognition from employers are the top reasons people consider quitting<\/a>.<\/p>\n

As for those currently looking for work, their priorities have also shifted. According to LinkedIn\u2019s 2022 Global Talent Trends report<\/a>, for 63% of job seekers, a work-life balance is now a top priority.<\/p>\n

A sneak peek into the future of work<\/h2>\n

So how does this complex phenomenon that may or may not be accurately summarized as The Great Resignation is going to change things moving forward?<\/p>\n

Here are some changes that are already taking place:<\/p>\n

Career breaks will be normalized<\/h3>\n

Hiring managers and recruiters are slowly beginning to realize that career breaks in a candidate\u2019s profile should not be a reason for disqualifying them. With so many people taking time off work for various reasons (voluntarily or not) within these past two years, resume gaps will no longer be the red flags they once used to be.<\/p>\n

In fact, LinkedIn recently presented Career Breaks, a new feature that allows users to be more frank about their work history in their profiles, by adding windows of time during which they weren\u2019t working. This will further normalize having resume gaps<\/a>.<\/p>\n

Mental health and wellbeing training will become more common<\/h3>\n

With everyone still in emotional (if not in physical) recovery mode from the pandemic, conversations about mental health at work are increasingly becoming less taboo.<\/p>\n

A recent study by Oracle<\/a> found that the pandemic negatively affected the mental health of 78% of the global workforce, with 85% of people saying their mental health issues at work negatively affect their home life. On top of that, 76% of people believe companies should be doing more to support the mental health of their workforce.<\/p>\n

And the companies seem to be listening \u2014 at least to an extent. According to TalentLMS and SHRM research on the state of L&D for 2022<\/a>, 71% of HR managers would invest in mental health and well-being training if they had a higher budget, while 77% of them are likely to focus on life skills training this year.<\/p>\n

Remote\/hybrid working will be preferable<\/h3>\n

When wondering how to retain employees in the future, you should consider offering remote or hybrid options. People are not keen to return to the office, with many preferring to work from home or in a hybrid capacity.<\/p>\n

Gallup sees 37% of desks remaining empty in 2022<\/a>, while\u00a0a survey on tech employees found that, for 1 in 3 respondents, a lack of remote work options is a reason to quit their job<\/a>.<\/p>\n

Flexible work schedules may become the norm<\/h3>\n

Apart from changing the norms of what constitutes a workplace, our notions about what constitutes a workweek are also shifting. A large majority (83%) of American workers are in favor of a four-day work week<\/a> and many companies are experimenting with flexible work schedules. A four-day work week? It\u2019s becoming more and more possible.<\/p>\n

\"How<\/p>\n

How to attract employees in this climate\u2014and retain them<\/h2>\n

No matter what caused this phenomenon, one thing is for sure: if you want your company to survive and thrive, you can\u2019t just wait for this wave to pass. Instead, you need to take action and come up with solutions.<\/p>\n

Here are some hiring and retention strategies<\/a> you can follow:<\/p>\n

Offer returnships<\/h3>\n

Returnship programs can help reorient employees who’ve been out of the job market for a while into the world of work. This is important both for practical reasons (their skills may not be up to date after an extended career break) and for emotional ones (finding confidence in their work anew).<\/p>\n

Provide upskilling\/reskilling training<\/h3>\n

According to the TalentLMS and SHRM survey, 59% of HR leaders will provide their employees with upskilling and 55% with reskilling training in 2022. Upskilling and reskilling training are crucial in order to bridge the skills gap 1 in 2 surveyed HR managers agree their company is facing.<\/p>\n

Promote internally<\/h3>\n

When looking at how to retain employees, very few things are more helpful than ensuring\u00a0people have upward mobility within your company. Promoting from within when a new position opens instead of constantly seeking new talent shows you\u2019re committed to helping your employees grow as professionals.<\/p>\n

Show your appreciation<\/h3>\n

Something many managers tend to forget is that people thrive when presented with enough praise and recognition. A McKinsey survey<\/a> on companies\u2019 performances during the pandemic saw that 49% of the companies that performed better and even witnessed an increase in employees\u2019 job satisfaction, were prioritizing recognition.<\/p>\n

Offering praise and recognition in a frequent and structured manner is a great employee retention strategy because it creates a workplace where everyone feels valued and thus inspired to keep doing good work<\/strong>.<\/p>\n

Changes are happening everywhere around us<\/h2>\n

Whether due to the pandemic, the global economy, the digital revolution, or a number of other factors, the world of work has changed a lot\u2014and it will keep changing. Pessimism and fear are not the answer.<\/p>\n

Instead, companies need to be agile<\/strong> and proactive<\/strong> in order to succeed in the long run, no matter what the future holds.<\/div>\n","protected":false},"excerpt":{"rendered":"

Everyone loves talking about The Great Resignation. It\u2019s a threat. It\u2019s an opportunity. It\u2019s a cautionary tale when discussing employee retention, or a wake-up call to focus on crafting a\u00a0healthier company culture, making a firmer commitment to DEI, and investing in employees\u2019 well-being. And while all these approaches certainly have merit, there\u2019s one problem: The […]<\/p>\n","protected":false},"author":33903,"featured_media":8227,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[40],"tags":[],"class_list":["post-8224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion"],"yoast_head":"\nThe Great Resignation: How The Labor Market Has Changed<\/title>\n<meta name=\"description\" content=\"The Great Resignation is often linked to the pandemic but that's not necessarily the case. 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