How the great resignation is impacting HR practices in the market (5 mins Read)
Great Resignation is a term used for the workers quitting their jobs in huge numbers during the COVID-19 pandemic. Typically, the Great Resignation term is used for the US workforce, but it has happened across the world. It is also called the Big Quitsometimes.
According to a survey in US, over 40% of the people either quit their jobs or planned to quit their jobs in the year 2021. The figure is almost double of what it was two years before 2021. Moreover, in a similar survey in the UK and Ireland, it showed that 38% of workers intended to change their jobs by the end of the year 2022. It is even more surprising when one focuses on another survey of working professionals aged between 18-24 which shows that 56% of the workers plan to quit their jobs in 2022.
The Impact of the Great Resignation on the market
The year of the pandemic 2020 was quite turbulent. People around the world were worried about their health, their finances and the future. During this period, people evaluated themselves where they stand and where they wanted to go in the future. The flexibility provided through remote jobs contributed hugely towards this. But, the businesses expected the employees to come back to their normal daily job at the office once everything reopened and normalcy restored, picking it up from where they left off before the outbreak of the pandemic. However, employees found that they had better things to do given the option of working from home or anywhere, working part-time, spending more time with the family, taking good care of their children and many more benefits.
Having more time in hand as they no longer had to deal with a long commute or the daily grind at the office, employees had more time to reflect for their well-being and the quality of life. Some employees started loving the work from home or anywhere so much that they vowed not to return to the office again. While there were others who desired and discovered to do something more exciting for themselves like starting their own business or company and you can’t blame them after a year of living in constant fear about their health,jobs and life.
This marks a new beginning as people are not returning to their previous positions. Instead, they are gettingin their cars and driving to their desired locations.
Let’s have a look at who all are on the top of The Great Resignation
- Employees in the middle of their career have The Greatest Resignation Rates
Employees in the age of 30 and 45 witnessed a substantial increase in the resignation rates in the years 2020 and 2021, with an average increase in resignation of more than 20% every year. While younger employees were more likely to leave, however a research indicated that resignations among workers in the 20 to 25 age group actually fell in the last year (might be for their increased financial instability and low demand for entry-level positions). Those in the age group of 25 to 30 and 45+ resigned at slightly greater rates in 2021 than in 2020. But, it is not as big as compared to the increase in the age group 30-45 employees.
- The Tech and Healthcare Industries also had the most resignations
The data companies have come up as a safe anchorage in this time of crisis. In the post pandemic world, Email Marketing, Digital Marketing, Social Media Marketing, SEO Services, PPC Services and Data Services top the list of demands for the workers who are from the tech background. The data companies have provided very promising data services in order to make the workers who have resigned ensure a secure company or brand of their own. Consequently, The Great Resignation has in fact proved to be a blessing in disguise for many. All they have done is to follow the right strategy by joining hands with trusted data providers.
A new data from the workforce analytics firms confirm that the “Great Resignation” has come much sooner than most people believe. There are significant disparities in the turnover rates among the organizations in the other industries such as manufacturing and banking, which has decreased marginally, on the other hand, 4 percent more of the healthcare workers have left their employment in the last year 2021 and the resignations in technology have increased by 4.5 percent. The employees who worked in the fields which had witnessed huge increases in demand due to the pandemic had much higher resignation rates, which led to the increased workloads and burnout.
CONCLUSION: Looking at the factors above, the employers need to be well prepared for a new kind of workforce which will no longer tolerate being overworked and getting less paid what they think they deserve. In other words, the employers will need to adapt to the change. In order to maintain a successful unit, the companies will have to take every step to attract and retain the best skilled talent. Companies will have to find new ways to attract them and earn their trust which will involve reinventing the human resources efforts. The new workforce will only be attracted, if you reward them with competitive pay, great flexibility, good incentives, nice health care benefits and ample opportunities to grow. They will only accept your offer if you keep a diverse and inclusive workplace.