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Derek Thompson wrote in his article for The Atlantic: “this economy must feel like leaping from the frying pan of economic chaos, only to land in the fires of Manager hell,” he wrote. “Job openings are sky-high. Many positions are going unfilled for months. Meanwhile, supply chains are breaking down because of a hydra of bottlenecks. Running a company requires people and parts. With people quitting and parts missing, it must kinda suck to be a boss right now.”
While employees may simply roll their eyes at these expressions of sympathy directed to their senior leaders, from an executive perspective, Thompson simply highlighted an upcoming and common frustration - The Great Resignation is the latest recruitment, HR and organisational headache.
Microsoft research has found that more than 40% of employees globally considered quitting their jobs in 2021. Recruitment company Randstad conducted a late 2021 survey which further added to these findings. Almost 25% of employees in the United Kingdom were planning to resign in the next three to six months and around 70% of them were fully confident in their decision to consider alternate employment. In Australia, Employment Hero found 48% of employees were interested in looking for new work in the next 12 months.
So why is it that so many people are quitting their jobs? What has spurred this great resignation and how can organisations plan to survive it?
Anthony Klotz, a professor and psychologist, coined the term “The Great Resignation” after the global pandemic that inspired people to reconsider their work-life balance as a result of lockdowns, reimagining what they want their working lives to look like today. “From organisational research, we know that when human beings come into contact with death and illness in their lives, it causes them to take a step back and ask existential questions,” Klotz told Business Insider Australia. “Like, what gives me purpose and happiness in life and does that match up with how I’m spending my time right now? So, in many cases, those reflections will lead to life pivots.”
Yet, this ‘epiphany’ Klotz describes is not the only reason millions of people suddenly quit their jobs. There are other forces at play such as:
A University of Scranton whitepaper stated that “nearly 70% of organisations report that staff turnover has a negative financial impact due to the cost of recruiting, hiring, and training a replacement employee and the overtime work of current employees that’s required until the organisation can fill the vacant position.” This clearly explains the need to develop and implement effective employee retention strategies within organisations to survive potential fallouts from events such as The Great Resignation. Here are four strategies to do just that:
The effects of this phenomenon aren't going anywhere. It may get better, it may get worse. But, it’s more about the lessons organisations can learn from The Great Resignation that matters. It’s allowed business leaders and employees to identify gaps in the employee-employer relationship and given them the opportunity to fix that. Whether you decide to act on these changes, it’s up to you, but being naive or brushing off these effects could lead to catastrophic employment and recruitment issues down the line. With many businesses facing the hardship of rising labour costs and talent shortages, offshore outsourced staffing allows your business to build dedicated teams without needing to worry about the likes of recruitment, training office facilities, IT, recruitment, HR and payroll.
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