There has been a radical change in the way people think about work and what they want from a workplace culture. The pandemic and the lockdowns changed the way businesses operate and consequently, how employees work.
Many folks have discovered that it is possible to work from home and not have to commute and go into an office. Priorities are being re-evaluated. Two years ago, you might have felt you had fewer choices. You needed a job and employers had the upper hand. You might have felt that you had to put up with toxic workplaces or a workplace culture that was flawed. Not so anymore.
Focus on Being a Great Place to Work
People want to work in amazing workplaces. Employees are insisting on a workplace culture that fits with their values. They do not want to deal with the daily struggle of going to work with a team or a boss that doesn’t resonate with them.
It seems that the Great Resignation is not slowing down. According to a report from McKinsey and Co, about 40 percent of workers are considering quitting their current jobs within the next 6 months. The possibility of staff shortages is causing stress for employers.
Bosses are struggling to hire the right people, while job hunters are being picky about where they work. They're looking for the best place to work. and it's no longer just about the paycheck - they're looking for a job that suits their values and lifestyle.
The Gig Economy
Leaving a job used to be a stressful action. There was no guarantee that you'd get another post, and your livelihood could be affected. That's no longer the deterrent it once was. The growth gig economy means that you can do multiple things at once and not be judged by society, the way you would have been a decade or two ago.
In fact, it is considered the norm these days rather than the exception. A person can leave their job and find other ways to make money pretty swiftly, without being thrust into a bad financial situation.
Changing Career Paths
For the past 100 years, when people valued a career. If they changed jobs, they generally stayed within the same industry. They built up years of experience so that they developed a career advantage. It meant a better chance at getting and keeping a job and building a solid career.
Now, nearly half of people who quit their current jobs are switching industries and starting a new chapter in their lives. They are taking the plunge and bravely exploring new opportunities - where they work has become more important than the job they do.
This could be because they feel their jobs are not as secure as they perhaps thought they were. Some feel they are becoming obsolete due to advanced technology and would have to train up to stay current. They'd rather start something new instead or look for a position that offers remote working.
The Resignation Trend by Industry
This resignation trend is affecting organizations across the board, but some industries are hemorrhaging talent at a faster pace than others.
The consumer sector, as well as finance and insurance fields, have been hit hard. Retail of all types is understaffed. Of the people who quit their jobs in these industries, over 60 percent of them either switched careers to do something different or quit the workforce entirely.
"It's not just the Great Resignation trend you should be concerned about, " says Gary Vaynerchuk, CEO of VaynerMedia. "You also need to look at the 'never applied' numbers."
This means that not only did the post become available when they left, but the pool of talent trained in that position was suddenly much smaller. The numbers show that it can be as high as 60 percent! Finding people who are willing to take up the baton isn’t easy. When you are only left with less than 40 percent of the original workforce to pick from, it can be tough to build an excellent team to run the business. This has created a perfect storm environment where employers now have to compete to get great employees.
Health care and education were both also struck hard. They too felt the effects of resignations combined with ex-employees making a switch out of the business altogether. Over half (54 percent) of workers in health care and education left their industry.
Healthcare requires highly skilled team members who are both engaged and passionate about their job. This loss of trained staff has caused problems for care providers, as well as patients and clients. Education also needs bright brilliant minds who are engaged, or our future generations will not be in a good position. We need teachers and educators to mold the minds of future Americans and bring out the very best in them.
This philosophy extends to hiring and retaining your staff members. Treat them with respect and try to bring out the best in them every day.
How to Create an Amazing Workplace
While everyone is trying to get their business staffed and gear up their teams to an optimum level, the great resignation has spawned a national shake-up. This could be a good thing, if you see it as an opportunity. When people are leaving, they are not feeling fulfilled by their job or the work culture of the company. When your employees are not engaged and happy, they are not as productive as they could be, and your bottom line suffers. it is possible to make your workplace amazing and find the right people who will want to work there.
The current trend of folks quitting their jobs has also presented an opportunity for jobseekers who might not have been considered for the position to take advantage of new opportunities that might have been impossible a few years ago. Fresh blood can bring new ideas and innovation.
It is an exciting time. Build a productive and excellent team. Instead of lamenting the ongoing labor shortage, look at it as a period that will bring change for the better. Competition brings out the best in people. If everyone strives to create great places to work, soon there will be more amazing workplaces than ever before, and that must be good for everybody.