You may have heard the term “The Great Resignation” thrown around for quite some time now, but what exactly does it mean? More importantly, what has caused this phenomenon that saw unemployment go from record breaking highs in April 2020 to a record voluntary mass exodus from jobs in 2021?
What Caused This?
The root cause of this can primarily be traced to employee dissatisfaction. While this is not a new sentiment, the Covid-19 pandemic allowed for employees to take much needed time to reevaluate their priorities. Doing this led many to see a new potential life in the form of remote work, changing careers, or following their passion in some other form such as opening their own business or even taking a break from working altogether. When some employers began requiring employees to return to office, many chose to leave altogether rather than return. Maybe the opportunities at other companies that had moved fully remote (as many did) appealed to them, maybe they couldn’t handle the commute, maybe they just needed a break, but the result was the same. Now, opportunities can be pursued all over the country with remote work without the need for relocation.
The Effect on Employers
Many employers now find themselves short staffed and struggling to retain employees. Luckily for employers, there are many ways to adapt to this changing environment and retain employees as well as attract quality new hires. Paying a competitive wage is no longer going above and beyond, it is a must for retention. Offering relevant benefits such as mental health stipends, childcare and professional development can help attract prospective employees, but even this is not a guarantee.
Offering a remote or flex work schedule, as mentioned above, is another way for employers to retain their talent. Not only does this lead to happy employees with better work life balance, it can also be a huge cost-saver for employees as they no longer have to pay the costs associated with having employees in office 5 days per week. There are, however, several factors that employers should keep in mind when looking at moving to fully remote work such as the tax implications of hiring out of state employees. Nonetheless, this is becoming a common work model in many industries, and along with it proven success and employee/employer satisfaction.
No matter what end you find yourself on, employer or employee, you will likely feel the effects of the Great Resignation in some form. Having the knowledge to approach it in the right way is important, and doing so has the potential to reform your life in numerous positive ways.
For more details check out this Webinar by pdxMindShare Founder Kent Lewis.
