What’s driving the “Great Resignation” and what can employers do about it!

The “Great Resignation”

More than 80% of people will consider a career move in the next 6 to 12 months, according to a survey by Morgan McKinley. What is underlying this tsunami of resignations and what can employers do about it?

We have identified 6 factors playing a role in this trend:

1. Pent up demand. People, who had planned to leave during Covid, deferred handing in their notice until there was more certainty in the market. So, they held onto their jobs until finally a pathway out of the pandemic emerged.
2. Remote working is playing a part. Working from home has loosened the psychological contract so people feel less bonded with their employers and colleagues and therefore find it easier to leave.
3. People have had time to reflect on the job itself. When you have time in your bedroom or home office on your own, you can really think about if this is a meaningful job or was the enjoyment you felt, pre Covid, being derived from being in the office and shared experiences with colleagues etc…
4. Not getting continued flexibility from existing employer. If employers seek to reduce remote/flexible working as Covid subsides – employees, who value this benefit, are likely to move to companies who do offer it.
5. Employees are not tied to large local employers anymore. If you are working for a major employer in a regional location – you are no longer geographically bound to working for this employer. Thanks to remote working – your employment horizons have suddenly broadened significantly.
6. Employees are simply stressed and worn out by the pandemic and are simply looking for a change.

A high staff attrition rate is a nightmare for companies. Here are some ideas to help employers attract and retain staff:

1. Review your salary structures. Demand for staff is driving salaries up and, if you are not competitive, workers’ heads are more likely to be turned by the prospect of receiving more money elsewhere.
2. Review benefits packages – relatively lower cost benefits, such as Employee Assistance Programme EAPs/Health Insurance can have a perceived higher value in the eyes of employees and can act as disincentives to leave.
3. Relaxing the criteria around job specifications. Where possible, employers can perhaps loosen the requirements for a role. For example, broadening the range of years’ experience required for a role.
4. Looking outside traditional overseas locations for talent. For example, certain industries may have relied on Eastern Europe as a source of talent, however there is limited availability of resources there today, so companies need to look further field.
5. Using visual content to attract staff. Videos from existing employees espousing a company’s values and culture can be a powerful tool to attract talent. According to videomyjob.com, 88% of employers using video have found it generates more responses from passive candidates. Studies also suggest that, by creating a positive feedback loop in a business, it acts a useful tool to retain staff.