THE GREAT RESIGNATION: WHAT YOU NEED TO KNOW
The Great Resignation sounds scary and it kinda really is. Find more about this tsunami of turnovers and how it might impact the workforce.
The great resignation is a phenomenon predicted by experts post-pandemic event described as a large number of people leaving their jobs. While companies have been restive, this shift happens as people brace themselves to live what was once called a “normal” life.
At the onset of the end of the pandemic as social distancing rules began to be lifted one by one in several countries, the job market faces uncertainties. As the world faces recovery and the Great Resignation is described to be coming sooner or later, it might also cause several drawbacks to companies. The Great Resignation is related to the Great Awakening. (link) But for now, let’s get to know more about what the Great Resignation is and what causes it
What is the Great Resignation?
There have been many service industries reported to have a constant high number of workers quit in different sectors. The Great Resignation, as the name suggests, is individuals leaving their jobs at an unexpected number which is believed to be caused by collective burnout.
Other possibilities of the Great Resignation include wage stagnation amid the rising cost of living, economic freedom, long-lasting job dissatisfaction, and safety concerns. Additionally, most of all, the Great Awakening.
As many employees began to search for what they claim as comfort, it becomes harder for companies to retain their talents. Many young startups have been developing as well, and therefore, employees would resign to reach for a place that they feel more deserving of.
In this scenario, companies might need to re-evaluate their future orientation to new workers so that they can give their loyalty to the company. As an exchange, the company will not waste more costs for attaining loyal employees.
Companies doing better in the Great Resignation
If the Great Resignation would happen soon, this means that retention is fading from the labor market. Industries with low location and time independence were among those who suffered during the COVID pandemic work crisis.
Meanwhile, there are also business models which imply the providers and receivers of the product or service at the same place at the same time such as online shops. There are businesses like restaurants, ship cruises, sporting events, and many more.
Regardless of the model, most business owners were impacted by the pandemic, even for just a tiny bit. This leads to the cascading impact on workers, their participation, well-being, and motivation.
Services provided at a specific place but where the provider and receiver are at the same place have done slightly better. As this kind of business has a high survival probability, you might see a lower incidence of the Great Resignation.
However, for white-collar workers, the pandemic afforded new perks such as the ability to work from home. Some workers may agree or disagree with the new style. Although remote working provides greater flexibility and a more work-life balance, there are certainly several types of people who prefer to work in offline-office settings. The degree of remote work will also depend on how well a firm could manage challenges such as communication barriers.