The Great Resignation: is it over yet or should employers still be concerned?
What is the ‘Great Resignation’?
The "Great Resignation" refers to the surge of employees leaving their jobs in search of better opportunities, work-life balance, and job satisfaction driven by the COVID-19 pandemic that kicked off in 2020.
This global event precipitated the shift towards remote work which gave many employees the freedom to reevaluate their priorities and pursue new career paths.
The term was originally coined in the US by organisational psychologist Anthony Klotz in May 2021 to describe the spike in resignations that appeared post-pandemic.
As a result, many employers around the world faced a significant talent crunch, as employees left in search of more fulfilling roles. Companies were scrambling to find ways to retain their top talent, and invested in initiatives such as flexible work arrangements, employee wellness programs, and increased benefits to keep their employees happy and engaged.
The Great Resignation made it clear that traditional workplace structures and practices were no longer sufficient to attract and retain talent in a rapidly changing world of work.
But where are we now in the employment landscape?
It is important to unpack the Great Resignation impact at this time, especially if we are entering a new phase of this trend.
As business owners, leaders, and managers, it is crucial to prepare for the changes that may be coming. We need to understand what to expect and be on the front foot.
If the Great Resignation is over, we need to be aware of what this means for our business. We may need to shift our focus from retaining talent to recruiting new talent.
On the other hand, if the trend is still ongoing, we need to be prepared for more resignations and consider how to retain our best employees. We may need to offer more flexible work arrangements, better pay and benefits, and other incentives to attract and retain the best talent.
Are employers and recruiters still feeling pressure to find talent?
The current state of the workplace is complex, with changes in industrial relations law in Australia and the impact of the Great Resignation on the current recruitment landscape.
While the phenomenon hit certain regions harder than others, in Australia, it was a perfect storm of factors: employees reassessing work, pent-up demand for travel, lack of incoming travel, and a positive economic situation.
Many people left paid employment to go out on their own or set up portfolio situations. This has made hiring difficult across industries, locations, and positions.
The Great Resignation is still having an influence over workplaces and employee behavior and expectations, indicating a need for a better understanding of market trends. There's still a shortage of workers in many industries, causing demands for higher wages, benefits, and flexibility from employees. It's difficult to find talent and some businesses are struggling to staff their premises.
While there are signs of a shift in the market, such as a settling period and a recalibration of how we work, the effects of the pandemic and the Great Resignation are likely to continue shaping the world of work for a long time. Pre-pandemic working conditions are not expected to return.
After the Great Resignation – what comes next?
Remote work or at least hybrid work is now an expectation, and many prefer the choice to work from home.
The new norm is that remote work is no longer a benefit but an expectation, and businesses need to prepare for it.
Having said that, Gen Z, the largest generation in the workforce, wants to connect in person, and they approach work differently. What this means is that leaders and managers must understand their employees' needs and find a balance that meets most of the needs across their employees.
Understanding what is important to people, both generationally and individually, is key to increasing engagement and productivity. While the Great Resignation may be settling down, competition for top talent is still tough, and leaders need to level up their game plan.
One of the most crucial outcomes of this unprecedented period of time is that leaders and managers need to ensure that communication with employees is open and transparent.
We need to listen to their concerns and take action where necessary. It’s also essential to create a positive workplace culture that encourages employee engagement and promotes their well-being across all intersections.
Conclusion
The Great Resignation itself may be in its twilight but it’s upheaved a stagnant landscape. This period puts businesses, organisations and leaders under pressure to make their workplace conditions better, safer, and more accommodating of individual employees’ needs.
This may seem like a pain, but it’s a blessing in disguise. All evidence points to happier workforces being more productive and that’s the best outcome for businesses and organisations and your clients and customers.
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