A deep dive into Great Resignation

One of the effects of the COVID-19 pandemic was the rise in resignations. Dubbed the ‘Great Resignation,’ it started in the United States in 2021, when employees started to leave their jobs voluntarily. While the reasons for the Great Resignation  were many, it did start discussions on topics such as job security, toxic work environments, and job dissatisfaction.

It has been three years since the Great Resignation started, and since then, a lot has changed. The balance of power that was firmly with the employees during COVID-19 has somewhat shifted back to the companies, with several of them now recalling employees back to the office. However, most of it is on a hybrid model of work where one has to be in the office for only two to three days per week.

However, post-COVID, workplace dynamics have changed so much that a new work culture is being witnessed across the world. This has been dubbed the ‘ Digital Renaissance’.

So, what does the future hold for our work culture, and is the ‘Great Resignation’ here to stay?

The Great Resignation 

Back in 2021, the world had just recovered from the first wave of COVID-19. However, the pandemic had made some eye-opening revelations. The pandemic saw several layoffs, with governments around the world stepping up to provide cash incentives to restart the economy. 

For the first time, the death and destruction that COVID-19 brought made employees realize that there was a life beyond work and career. The work-from-home concept also gave them the freedom to execute their work duties from the comfort of their homes. 

Another exciting thing that occurred during the work-from-home phase was that employees.

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got more time to spend with their families, which helped them form closer relationships. Moreover, after some initial hiccups, employees also found it easy to work from the comforts of their home.

All this time spent in their homes also got them to think that their personal lives were as important as their career goals. So, at the start of 2021 people started willingly to quit jobs. The number only increased in the following months and by August 2021 a total of 4.3 million people left their jobs in the United States alone according to Bureau of Labor Statistics.

Among the industries most affected was the hospitality industry such as restaurants and hotels. It is because these industries require employees to be at their workplace everyday. This meant that they were exposed to the vagaries of the pandemic.

The US government, cash incentive scheme, also gave many of the employees who lived from paycheck to paycheck some respite. Researchers also found that Millennials and Gen Z were the two dominant groups that were the majority of the Great Recession resignees.

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The role of toxic work culture 

Even before the pandemic, the issue of toxic culture was described as a major reason why employees left an organization. However, the numbers were not as high, which meant even though companies were aware of this issue, it didn’t prompt them to tackle the issue. However, since the Covid-19 pandemic, employees started taking these issues more seriously.

With companies opting for layoffs to decrease operational cost, employees received the brunt. This meant that they started prioritizing other issues, meaning a workplace that respected their boundaries. Moreover,  the government also stepped in with Guaranteed Cash Payments that gave them a safety cushion allowing them to be more brave in their employment choices.

Research found that employees were ten times more likely to leave a company than due to other reasons. And with the post-pandemic world bringing in newer realities such as working from home and hybrid working, employees now are more inclined to give more importance to ensuring their workplace has a healthy work environment.

According to the Bureau of Labor Statistics in October 2021 the food industry saw an attrition rate of 6.8 per cent, the highest ever recorded in history. Even retail stores saw an attrition rate upward of four per cent. To make matters worse, in October 2021 the United States witnessed the Striketober, a labor strike in which over 25000 workers participated.

The reasons for the protest was income inequality and the long working hours at a very low hourly working rate. 

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Steps to avoid Great Resignation

While the Great Resignation may have passed over for now, its effects have been long lasting. Organizations for the first time were on the other side where they had less power when it came to negotiating.

And while the companies have recovered from it, they need to be vigilant. They need to form policies that foster a healthy environment where employees feel they are valued/

Offer flexible workings 

The Covid-19 pandemic proved one thing: that most of the sector could work with the same and in some cases even greater efficiency through remote work. In fact, many organizations shifted to full time remote working to save up on overhead costs such as office rent. Even organizations that have asked employees to return are doing so in a hybrid model.

Thus, companies now need to realize that hybrid or remote work is the future. So, there is a greater need for companies to promote greater work flexibility. 

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Improve employee development 

If organizations want to recall employees to office, they must also focus on ensuring that this offer is worth it for the employees too. Employees now want a workplace where they can not only work but also progress and upskill themselves.

Organizations have now started to offer incentives to employees so they can upskill themselves in order to avail themselves of any internal promotions. Doing so also motivates employees to be at their best and keep up the efficiency of the entire company.

Focus on employees well being 

The Covid-19 pandemic was not only about a change in the workplace, it was also about a health situation where lots of people also lost their lives. Employees also bore the brunt of this. Everyone knew somebody close who lost their lives, and that took a toll on their mental health. In addition, people also suffered from long Covid that gave them long-term health issues.

Thus, they should conduct timely surveys to check on their employees’ well-being.

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Our tool includes AI Interview Copilot which gives the interviewer real time suggestions while conducting an interview. This includes asking the appropriate questions to ensure that the interview is smooth.

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Our structured interviews will help an organization conduct quick and quality hiring that promotes diversity and inclusion. Using BarRaiser will help organizations eliminate hiring bias and have the best crop of employees that take their workplace to new heights.