The ‘Great Resignation’ – All You Need to Know!

By the end of March 2020, the world was under a strict lockdown, and everyone was forced to work from home, which made MNCs realize they could work with fewer employees and pay even less. As a result, many companies downsized and sought to make profits by any means possible. To combat this, a large number of employees quit at an increased rate. In this article, we will be putting forth the details of this wave and how it can be controlled by the companies.

What is the Great Resignation?

The Great Resignation is an ongoing economic crisis in which a big number of employees willingly quit to either earn a higher wage or to avoid the uncertainty brought on by the epidemic. Management Professor Anthony Klotz of Mays Business School forecast the crisis in 2021 and coined the term “The Great Resignation“. According to the US Labor Department, nearly 4.5 million individuals quit in November 2021. This was done to perpetuate the trend that had been seen since September 2021, when 3% of staff resigned every month. 

In America alone, this trend resulted in 75.5 million individuals quitting their jobs in the year 2021. As per various accounts, reports, and surveys it was concluded that the majority of employees quitting their jobs were the ones who were getting lesser pay than their other counterparts or were unhappy with their experience in their current firm.

Reasons That Led To The Great Resignation!

With the drastic changes in everyone’s lives due to the pandemic, the notion of “job satisfaction and security” came into play. It was now up to the employees to make the capitalist work culture a bit better for everyone. The major reasons that pushed people forwards to quit their jobs are:

• Low salary
• Limited career opportunities
• Poor employee benefits
• Not being valued by immediate bosses
• Hampered relations with office colleagues 
• A dire need to change the industry altogether
• The inconsiderate attitude of the companies

Do you recall how there was a sudden surge on social media when everyone was pursuing their dreams and we were all talking about encouraging mental health? They were all repercussions of the movement. The notion of stable mental health made people realize that with work they also need happiness. 

Employees were finally encouraged to select their job satisfaction standards and work with a firm and job profile that met their needs. The movement is also to credit for the increasing number of small businesses established during the pandemic. You must have met at least one individual who quit their full-time job to pursue their passion and is doing well now.

Who Was Affected the Most? 

The maximum number of resignations was recorded in the IT and Technology sectors, healthcare, transportation, and services sector. Women that were either being paid lesser than their male counterparts or were in the service sectors were reported to majorly become a part of the movement. Mid-career workers were the most likely to join the movement as they look for better and more secure jobs. Reports estimate that approximately 23% of the workforce will find new employment opportunities in 2022.

Impact of the Movement 

With people leaving jobs en masse, companies are facing a major lack of staff that has eventually put a load on the left behind employees. To overcome this problem big firms have started to offer better pay, perks, and privileges to their employees. With the uncertainties of the pandemic, many organizations are even offering the liberty to people to work on-site or from home as per their convenience and work requirements. In a recent study, it was proven that people give equal importance to a ten percent increment in their salary and to an option that allows them to work from home. Do you remember the new policy of 4 days a week being adopted by a lot of companies? 

So the 4 days a week or 32 hours per workweek is a policy wherein the employees will work for only four days a week, that is from Monday to Thursday and will get rest from Friday to Sunday. This policy aims at increasing work productivity and giving adequate rest and personal time to employees. The pandemic has also increased the cost of living because of which migrant employees have to stay back at their native place. So for example the cost of renting a flat in a megacity will be equal to buying a house in a small town or city eventually forcing the companies to establish in smaller towns as well.

How is India Being Impacted by the Movement?

The densely populated country is not affected by the trend as much as the US has been affected but it is at a level that needs to be addressed. Top IT companies in India have faced almost a 20%-25% resignation rate in the last quarter. Taking into account the Labor laws of the country, it is a little difficult for the employees to question the employer. But with the shortage of “good employees” companies have amended their hiring sentiments and are providing betting offers to the applicants. 

Another problem that has come along with the wave is that people changing their jobs are applying for posts that they have zero or no experience of with high expectations from the company. In such cases, it is becoming difficult for the applicant and the HR of the company to reach common grounds.

How Can the Wave Be Controlled?

There are multiple ways to battle the situation and affirm employees to stay in a company. Firstly the companies could make amendments towards creating a better and less toxic workspace for the employees. Provide them with flexible hours as per the requirement of their job profile. Offering lateral jobs is yet another way that companies can follow to overcome their employee shortage. A lateral job is a job offer wherein you offer the same or better position and salary to an applicant considering their previous experience and job. To increase productivity and employee engagement many companies organize recreational activities and group bonding exercises to enhance the work environment. 

This approach can be adopted by companies to bring in a sense of fondness for colleagues and the company in an employee leading them to stay attached to the company and think twice before resigning. Lastly, Multinational Companies can have voluntary postings for their employees that will help in retaining the talent while offering them an exciting life. We hope that we have answered all your questions about “Great Resignation”. Please let us know if you know something beyond this in the comment section.