The Big Quit
The Big Quit, the Great Resignation, or the Great Migration; these are some of the terms used to describe the current phenomenon of high percentages of the workforce leaving their jobs for a variety of reasons. Depending on which study you read, one half to two thirds of employees are actively seeking different employment. This comes on the heals of people staying at their jobs during the first year of Covid for security and stability. However, with time to re-evaluate and perhaps pursue other interests and focus on wellbeing, many are not willing to keep on with the pre-covid status quo. While this seems to be a global trend, Southern Alberta has an exceptionally low unemployment rate and we are not finding a high number of active job seekers. However, there are some interesting reflections and lessons to take in from the patterns observed.
There are many factors at play in the mass exodus of employees. Some have gotten used to working from home and don’t want to go back to the office full time or do the long commute anymore. Many have changed their lifestyle such that they are not spending as much money on dining out, travel or entertainment. Others may have found the space they needed to pursue other interests and take a different career path. According to Anthony Klotz, Professor at Texas A&M University, “the pandemic has also forced many of us to re-evaluate what’s important in our lives. As a result of this introspection, people across the country are making major life changes — although socioeconomic privilege is an important factor here. But whether deciding to go back to school, start a business, stay home with family more or retire early, these live pivots often involve stepping away from traditional work arrangements.”
There is a human psychology element to consider. Ultimately people are looking for happiness and meaning and do not want to devote such a large part of their lives to something that doesn’t fulfill this need. A report from Fortune states that, “Research has shown that people tend to quit their jobs after experiencing a ‘turnover shock’: a life event that precipitates self-reflection about one’s job satisfaction… So here we have virtually the entire workforce reassessing their feelings about work.”
Because there are so many job openings and job seekers are being more selective, the ball is in the applicants’ court as far as negotiating wage, benefits and working conditions. Many employers are raising wages and offering flexible arrangements for when and where you can work. However, as Jessica Stillman with Inc.com notes, “holding on to employees then isn't just about scheduling. It's about showing them their work has meaning and that the company actually cares about them as human beings.”
As an employer, how can you proactively respond in a way to prevent your employees from following the global trend? It’s imperative to know your employees and where they're at. Talking to them about their experience and needs is crucial. It is more important than ever to have a targeted retention strategy. “Gallup finds that it takes more than a 20% pay raise to lure most employees away from a manager who engages them, and next to nothing to poach most disengaged workers. Conduct meaningful conversations, set expectations and create accountability, individualize performance management to get the best out of people - and create an employee experience that retains workers.”
Using a third party such as Hire Standard to conduct unbiased engagement interviews or “stay surveys” is a good way to get a pulse on your workforce and be able to adapt to their desire for wellbeing and purpose, to retain them and keep them satisfied and productive. “In fact, Gallup recently asked employees what they look for most in an employer. The data showed that employees of all generations rank ‘the organization cares about employees' wellbeing’ in their top three criteria. For millennials and Generation Z, it's their No. 1 workplace want. Also high on their list are diversity, equity and inclusion (DEI) and ethical corporate behavior.”
If you have experienced resignations recently, conducting exit interviews is another way to get a sense of what went wrong and how you can mitigate future issues with your human resources. Hire Standard can come alongside you in these investigation processes, providing thorough and unbiased reports for your information and benefit.
The world of work is changing and employers must respond with empathy, transparency and adaptability to meet the needs of the workforce.