Understanding The Great Resignation
Increased work flexibility, more spare time, and employee “epiphanies” have contributed to The Great Resignation. Let's explore this phenomenon further.
3 Minutes | February 28, 2022
During the course of the pandemic, a certain phrase rose to the limelight. “The Great Resignation” raised alarm sounds among managers and CEOs within companies of all industries and sizes. The term was coined by Organisational Psychology Dr. Anthony Klotz, who observed a negative trend in employee work dissatisfaction. What exactly is this phenomenon, though, and how is it likely to affect businesses?
What is “The Great Resignation”?
The concept of this phenomenon is important to grasp, in order to evaluate the best way to manage the negative impacts of it within your own organisation. Overall, this phrase encapsulates the trend of workers voluntarily quitting or being made redundant of their jobs throughout COVID-19. The resignation was primarily identified and concentrated in the United States, with estimates that 33 million people quit their jobs since April 2021. However, this concept isn’t limited to the United States, with predictions it will hit hard in Australia over 2022, skyrocketing resignation rates.
What caused The Great Resignation
Needless to say, companies needed to accommodate and address capacity and social distancing restrictions. Whilst it was predicted that increased flexibility would increase work satisfaction and work-life-balance, there has been a somewhat opposite effect for some employees and companies.
Work satisfaction evaluation. Surprisingly, work-from-home and flexible workplace models triggered employees to reevaluate their work satisfaction. Many workers had an “epiphany” – that they were unhappy with their company’s attention to work-life balance. People questioned whether they wish to pursue their work or find something with more emphasis on facilitating spare time and manageable work demands.
Remote work. Prior to the pandemic, it was a common perception that working from home would be difficult and many preferred to go into their workplace. However, there has since been a preference for working from home – with less travel time, more quality time with family and alone time, and even more comfortable attire.
Burnout. Many frontline workers had a dramatic increase in work hours, with some having to add home-schooling on top of their already demanding work schedule. Office workers that had to adapt to remote work also were more likely to notice the pent-up effects of burn out from their previous work model.
Resignation postponement. There was another segment of workers that were more likely to resign after breakouts of COVID-19. These were the workers that had been wanting to resign before the pandemic but held off out of fear of not finding more work or dealing with additional stress in an unprecedented time. During calm periods, though, they were quick to join the resignation trend.
How to manage the negative impacts of The Great Resignation
Embrace Flexibility. Employees have a greater appreciation for emphasis on the life-side of work-life balance. To increase employee satisfaction and retention, it is necessary to cater to their desire for flexibility. This varies among industries and even employees, which means every solution will be individual.
Improve Recruitment Processes. An important way to increase the retention rate of your employees during the pandemic is to improve hiring practices from the get-go. Improve your ability to communicate expectations, benefits, and preferences.
Hire Efficiently. Though you might be tempted to rush hiring in the attempt to avoid disruptions to work flow, this can bring on more issues. It’s important to hire efficiently, finding the right balance between time and quality.
Outsourcing. Take advantage of the borderless boundaries introduced by the pandemic, but opening up to remote and outsourced workers. This allows you to reach more high-quality and devoted talent unrestrained by borders.
How outsourcing can improve your company in The Great Resignation
As a direct result of The Great Resignation, there is an increase in labour shortages. However, if there is any lesson to be learned from the pandemic, it’s that borders are not boundaries. This has made outsourcing a common consideration and solution for many businesses. With the likelihood of companies having already adjusted to flexible work arrangements, it is an increasingly seamless transition.
Businesses across the world of all sizes and industries can benefit from delegating important business processes and tasks to an offshore team member. Not only can you access a larger pool of qualified talent, but also are provided with state-of-the-art facilities that reduce overhead costs and resources.
Grow Your Team Today
MVP is an Australian-owned outsourcing firm that connects your company with highly-trained experts in the Philippines. We are committed to expanding your team, reducing overhead costs, and improving productivity. Contact us today to begin your offshore hiring process.