You have seen the headlines. People are calling it “The Great Quit” or “The Great Resignation.” Anthony Klotz, a professor at Texas A&M is credited with coining the phrase “The Great Resignation” after reporting that the main repercussion of the COVID-19 crisis in the workplace will be employees voluntarily leaving their jobs in the masses. With 15+ months of working in a pandemic, employees have begun to reevaluate what is important to them. For some, this means finding greener pasture.
The great resignation will come as a on-two-punch for some employers who are already suffering from labor shortages brought on by the pandemic. Others however are poised to reap the benefits. Who will come out on top?
It’s no secret one of the main reasons employees leave is for better pay. The companies who have been historically paying below market will begin losing their employees to the competitive job marketplace that has led many employers to increase wages across the board.
While it is not feasible for everyone to offer remote work options, more employees than ever are demanding that flexibility. As such, companies will lose their employees to their more flexible competitors. A recent LinkedIn survey of ~3000 full time US Workers found that 30% asked for a hybrid schedule with part-time remote work, 16% looked for a new job where they can be fully remote, and 8% quit or are considering doing so.
As as Zeno Group’s CEO Barby Siegel noted: “How employers treated their people during COVID will have an effect long after the pandemic is in the rear-view window. It will become part of an employer’s story.”
The 10th Annual Workplace Benefits Study from insurance and wealth management company Guardian found that workers who believe their employers handled the pandemic well displayed greater loyalty to the company. These employees were far more likely to plan to stay at their company for over a decade, compared with those who thought their companies managed it poorly (49% versus 28%).
Amidst the pandemic many employees have been “sheltering in place”. A job change was the last thing on their minds amidst a global crisis. But – as things return to normal employees are evaluating their work environment or their managers. As the old saying goes “people don’t leave bad jobs, they leave bad bosses.” Now is the time to evaluate your supervisors and managers and get ahead of any issues.