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  THE PHENOMENON CALLED THE GREAT RESIGNATION

  • August 10, 2022
  • Posted By : anudip_2018
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  “The surging cost of living and worries about the future is curbing the zeal of people to quit their jobs and join the Great Resignation. “- According to Randstad NV, a global provider of employment services.

  Covid-19 spurred on the Great Resignation or the Big Quit in early 2021, record employees voluntarily quit their jobs en masse. The desire for more flexibility has been one of major sticking points of the Great Resignation, as the pandemic popularized employee habits like remote work and working independent hours outside of a traditional 9-to-5.

  “A better description of this phenomenon would be a ‘Great Rethink’ in which we are all rethinking our relationship to work and how it fits into our lives,” Ranjay Gulati, Professor, Business Administration, Harvard University and author of the 2022 book Deep Purpose: The Heart and Soul of High-Performance Companies. Economies bouncing back from Covid-19 and work-from-home options have made it easier to quit unappealing positions and look for alternatives, driving up wages. Coined by Anthony Klotz, an organizational psychologist at Texas A&M University in May last year, the Great Resignation, reveals:

  • In the US, 75.5 million people left their jobs in 2021
  • 23% of the workforce is predicted to seek new jobs in 2022

   

  In India though, the situation is not this dire, but data speaks that the IT and the tech industry is hiring at unprecedented rates. Not only are people in the workforce changing jobs, but 51% of job seekers are looking for opportunities in industries where they have little or no experience. Possible causes includes:

  • wage stagnation amid rising cost of living
  • long-lasting job dissatisfaction
  • safety concerns of the COVID-19 aftermath
  • desire to work with better remote-working policies

   

  Financial Express in April 2022, emphasizes India Inc will soon face its moment of truth in the talent market as companies prepare to open offices after a gap of two years. According to a latest report by a global professional recruitment services firm Michael Page:

  • 86% of India’s professionals will seek new jobs in the next six months as the Great Resignation in India will intensify in 2022
  • 61% respondents in India are willing to accept a lower salary or promotion for better work-life balance.

   

  Nicolas Dumoulin, Senior Managing Director, Michael Page India and Thailand, said, “Individuals are placing an increased importance on company culture, sense of purpose, and leadership ahead of company brands and promotions. Organisations that have great company culture will likely experience a competitive advantage.”

  Ana Paula Assis, General Manager, Europe, the Middle East, and Africa, IBM, quotes in Fortune “I think we are starting to realize that the Great Resignation was actually the Great Resignification,” She adds. “People realized during the pandemic that they could really find opportunities that better suited their abilities, their skills, their needs, and people also gained more appreciation for the personal aspects of life—being with the family, being with friends, taking care of themselves.”

  Again, Forbes in its article Don’t Blame Covid-19 For The Great Resignation by Steve Lowisz, reads out that the pandemic didn’t cause the Great Resignation. Most businesses were dealing with turnover before Covid-19 hit. The pandemic definitely accelerated the trend—but it’s not the root cause. The Pew Research Center recently surveyed over 900 adults who left a job by choice in 2021, reasoning:

  1. Their pay was too low
  2. There weren’t opportunities for advancement
  3. They felt disrespected at work

   

  The Great Resignation statistics

  • 1 out 5 non retired adults left their job by choice in 2021, according to aPew Research survey.
  • 74% of people who responded to aLinkedIn survey said being stuck at home during the pandemic was a root cause for them to reconsider their current state of employment.
  • 20% of employees worldwide are actually engaged by their work, according to the GallupState of the Global Workplace 2021 report. The lack of engagement means it’s more likely that employees will look for other more fulfilling and engaging employment.

   

  Major findings from PwC Global Workforce Hopes and Fears Survey , one of the largest ever surveys of the global workforce conducted on 52,195 workers in 44 countries and territories which got released on May 24, 2022, states that the Great Resignation will continue apace in the year ahead as one in five workers say they are likely to switch to a new employer in the next 12 months. This survey revealed:

  • 35% are planning to ask their employer for higher pay in the next 12 months.
  • Pressure on pay is highest in the tech sector where 44% of workers surveyed plan to ask for a raise and is lowest in the public sector (25%).
  • 65% of workers discuss social and political issues with colleagues frequently or sometimes
  • 30% of employees say that their company provides support to help them work effectively with people who share different views
  • Skilled employees most likely to ask for promotions and pay raises and to feel listened to by their manager, while those lacking skills lack power in the workplace

   

  The survey paints a picture of a workforce polarized on a number of dimensions. One of the most important drivers of polarization is skills – with large differences between workers who have highly valued skills and those who do not. 29% of respondents said their country lacks people with the skills needed to perform their job.

  Countries with the biggest perceived gap in skills include Thailand, India and Brazil.

  The industries with the highest share of respondents who feel their skills are scarce are:

  • Healthcare
  • Technology
  • Media
  • Telecommunications.

   

  Compared with employees who don’t believe their skills are scarce, is more likely to:

  • feel listened to by their managers (+25 percentage points)
  • ask for a pay raise in the coming year (+20 percentage points)
  • ask for a promotion in the coming year (+20 percentage points)
  • feel satisfied with their job (+17 percentage points)
  • switch to a new employer (+7 percentage points)

   

  Other survey findings point to more differences in the workforce:

  • Women are 7 percentage points less likely than men to say they are fairly compensated, yet 7 percentage points less likely to ask for a raise.
  • Women are 8 percentage points less likely to feel that their managers listen to them.
  • Generation Z (ages 18-25) workers are less satisfied with their jobs and twice as likely as Baby Boomers (ages 58-76) to be concerned that technology will replace their roles in the next three years.

   

  CRUX: PwC said in a press release that higher pay, more job fulfillment and wanting to be “truly themselves” at work are the factors pushing workers to change jobs.

  The Great Resignation — or Great Reshuffle — started with employees wanting to control how they work. And now with the Great Rehire, recruiters and talent acquisition management teams need to approach filling job openings differently than before the pandemic. Employees want to continue to have control and will put a focus on purpose and meaning in their careers. They will prioritize companies that provide benefits to both global and local societies, according to a report by Harvard Business Review.

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