How Is The Great Resignation of 2021 Affects Your Business
The Great Resignation of 2021 has taken over the globe, affecting many businesses. It turns out there was no employee shortage. Rather, employees of today have to rethink their life choices. And leaving their job that doesn’t cater to their needs brought about by the pandemic seems to be the way to go.
Adding to the trend of flexible work that gives employees the work-life balance and other benefits they need, turnover rates have rapidly grown. In combating this phenomenon, attracting and retaining talent seems to be the one-way solution for most companies.
What is the Great Resignation?
The Great Resignation of 2021 means that people are mass quitting because they want better opportunities for themselves. The term was coined by Anthony Klotz, who is an associate professor of management at Texas A&M University. Among its reasons is that workers quit their jobs to reevaluate their career choices and what they get out of them.
The Great Resignation has been speeding up since last year when the pandemic hit, leaving millions of the workforce in awe. In the US, there have been 4.3 million workers reported to have quit their jobs in August. Similarly, according to Microsoft’s 2021 Work Trend Index, 49% of Singapore’s workforce is considering leaving their current company this year.
Where does this lead us? Are industries competitive enough to keep their talent?
Understanding the Causes of the Great Resignation
Considering the current situation in many industries and the aftermath brought about by the pandemic, what the workers of today need are the following:
- Flexible work
- Work from Home or Hybrid
- Work-life balance
- Higher Pay
- More Freedom
How does this impact businesses?
To say the least, businesses are currently concerned about their current workforce situation. At any point in time, your most valued talents can leave your company when their needs aren’t met. That said, companies are in the hot seat, but only when they aren’t competitive enough to adapt to the situation. Or extend their hands to their employees’ concerns.
Flexible work is here to stay, and other industries are already adapting to the situation and offering flexible work arrangements to cater to the demand. Whilst other companies offer hybrid setups.
Here are the impacts of The Great Resignation on your business:
- High attrition rates that can significantly affect productivity.
- More unnecessary expenses for the overhead cost of onboarding and training recruits.
- Loss of revenue from the loss of productivity.
- It forces businesses to get out of their comfort zones.
- Major preparation and restructuring when adapting to the flexible work arrangements.
Additionally, all these impacts create what we call a “vicious cycle.” It goes with your highly experienced employees leaving their jobs to look for better opportunities.
Consequently, the remaining employees will take over some roles and responsibilities. But more often than not, these employees aren’t getting paid for all the extra efforts.
This, in turn, leads to high burnout and the thoughts of doing the same like their colleagues–leaving your company.
What Can Employers Do to Avoid Employee Resignations and Retain Talent?
There are several ways employers can employ to avoid resignation and retain talent. One of the most fundamental ways is to adapt and make changes to cater to your employees’ demands.
Here are the five ways that can help every employer avoid mass resignations from their employees:
1. Pay your employees more.
Higher pay is one of the most effective ways to retain your talents. Not only about the salary, but also benefits like retirement fund and healthcare, allowance for children’s education, and other incentives and bonuses.
Expenses such as rent and utilities increase over time. And the only way your employees can keep up with their lifestyle is a salary increase, especially if it’s the only income they have.
2. Listen and make connections.
In these trying times, connections are what people use to keep moving forward. If you make connections with your employees, you will understand their concerns and situations better. Show them you’ve got their back every step of the way. Put yourself in their shoes, and make decisions that would benefit them.
3. Develop programs tailored to increase retention.
Programs are an excellent step towards retaining top talents. It can be a program that talks about their passions in life, teamwork, careers, families, etc. It doesn’t necessarily have to be about money all the time. Help your employees grow by tapping into their potential.
4. Provide growth opportunities.
According to one report, employees leave their jobs because of no growth opportunities. Often, it stems from not being able to see behind your thick cubicle. When employees start to feel like there’s no sense in working anymore, they are more likely to leave your company soon. If they stay but lack motivation, it’s because they have bills to pay and families to feed.
5. Create flexibility around the company.
Companies that thrive even in the most difficult times are flexible and are not afraid of embracing changes. If the environment changes, so does their workplace. Think of your employees and put them above in every decision that you’re going to make. Look at things from both sides. If changes can be made to better your employees’ situations, make a move.
What are the most important things for employees?
Understanding your employees and attending to their needs are still the most basic things that will make them stay. The Great Resignation of 2021 has a way of giving employers all around the world a way to rethink their employees’ concerns. Either you adjust, or you won’t be retaining your talents.
1. Organizational support
If there is some support around the organization, then why isn’t it stopping employees from mass resignation?
The Great Resignation is not a trend. It’s happening because employees are tired and suffer from burnout (40%), and where concerns are left unheard. Often, it’s the top-performing talent who needs organizational support the most. If you want to retain them, attend to their needs and give genuine support.
2. Flexibility around the job
Flexible work arrangements give employees the work-life balance they need. If other businesses offer FWA and can still be productive, it might be essential to reconsider as well. Great productivity and high ROI stem from happy employees.
3. Opportunities for growth
Growth in the workplace is often compromised. And employers don’t know or believe how important it is to retain talented employees. Are your employees engaged enough? Do you feel like they’re acting distant and unmotivated? If you don’t care because they’re only working in entry-level positions, then maybe you shouldn’t be surprised why your company has the highest turnover rate.
4. Appreciation and recognition
Don’t let your top-performing employees feel like they’re invisible. Give proper credit and recognition for what they did as much as possible. It won’t cost you anything compared to the value they gave. Even a simple “Thank you” will make a difference.
Trusted employees give their best fight in everything they do around the workplace. Often, they are productive and constitute “high performers.” And the best way to attract and retain talent is to continue to believe in their abilities and what they can do for your company.
Also Read: People Want Remote Work To Stay. Here’s Why.
The Great Resignation of 2021 doesn’t have to be viewed through a negative lens. Instead, employers have to view it as a chance to rethink and connect to their employees. When most businesses only focus on revenues and not their talents, they will soon face high turnover rates. Moreover, it might be harder to attract talent anymore for bad reputations. Remember to always put your employees first before anything else.
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