Before knowing whether the era of “The Great Resignation” is over or not, let’s see what it means.
The era of “The Great Resignation” accounts for the period when people started to quit their jobs because of the pandemic. Some people also call it the “Big Quit”. People started to quit their jobs at scale in April 2021 and it was evident that the “resignation” period is beginning. This phenomenon occurred in many countries, but it was the most severe in the United States. In 2021, 75.5 million people in America resigned from their jobs.
According to studies, the reasons for this resignation era were as follows:
- Job dissatisfaction: The younger generation strives to have a work-life balance and job satisfaction. Physical and mental burnout during working in a global pandemic led to employees being dissatisfied with their jobs.
- Stimulus payments: Stimulus payments mean the attempts to stabilize an economy with the use of monetary and fiscal policy. Monetary and fiscal stimuli increase the amount of money or credit in the economy.
- Inflexible working conditions: Pandemic made workers desire remote work options and flexible working schedules.
- Safety concerns: The COVID-19 pandemic also raised safety concerns, which was also a primary reason employees were quitting their jobs.
- Toxic work culture: This was one of the reasons why employees quit in 2021. A toxic work environment leads to stress and mental exhaustion.
- Better job opportunities: No opportunities for growth in the current jobs made people quit and look for better job opportunities.
Is it over?
Experts say that we will not see a resignation wave in 2022 as strong as the wave in 2021, but resignations will continue.
To avoid high turnover, spike companies can apply strategies to increase employee retention rate. Some recruiter tips to increase retention rate are:
- Flexible working conditions: One byproduct of the pandemic that is here to stay is virtual and remote work. Companies that allow their employees to work from wherever they want and whichever hours they want are likely to have an improved retention rate.
- Work-life balance: Employees want their recruiters to give importance to their work-life balance. Maintaining a proper work-life avoids employee burnout and increases productivity, too. Some practices that can be deployed are early off on Fridays, reduced working hours, or 4 days work week.
- Healthy work culture: A healthy and positive work culture can be a space where everyone is working as a team and motivating each other to grow. Appreciating and recognizing your employees’ efforts is also a good practice. Another two things that play a huge role in today’s age are diversity and inclusivity. Make every human being feel welcome and give importance to every voice in the office.
- New challenges: Avoid career stagnancy at all costs as every individual wants to grow by working on challenging projects as much as possible. Employees are likely to quit when they feel they are stuck in a job role and are not learning anything new.
Recruiters can evolve through this period by applying the right strategies and making informed decisions. Plan the right tactics to retain your top performers, as the future of your company depends on your human capital.