Not Just A Trend: The Great Resignation
By: Reagan Williams
COVID-19 has created a “new normal.” A normal where people must continue to practice protective measures for physical distancing, wearing masks, and sacrifices that have been made to keep communities and families safe. Another byproduct of the new normal is The Great Resignation. This phenomenon is an idea originated by Professor Anthony Klotz of Texas A&M University, and the prediction is that a larger number of people are resigning from their jobs in record-breaking numbers. Klotz research consists of how employees have quit their jobs and what drives them to decide to quit.
Voluntary attrition has been happening over the last year, with over 800,000 people leaving their jobs. Others are calling it The Great Attrition and it appears to be spreading across industries. According to McKinsey & Company, there is a likelihood that 40% of employees stated they would likely leave their jobs within the next three to six months. In fact, things have shifted since the recovery period from the onset of the pandemic. Employees that are resigning at the highest rates are mid-career employees. The industries experiencing the resignation rates are in the technology and healthcare industries.
Source: Pexels / Andrea Piacquadio
However, service industries have suffered during the COVID pandemic work crisis. A lot of this has to do with their business models associated with proximity, location, and time. Unfortunately, as a result it affects the workers, their motivation, and their personal well-being. High staff turnover in a service industry reduces productivity but costs businesses large amounts of money. This domino effect creates a shortage of experienced workers and affects the quality of service that customers will receive.
Globally, the workforce is entering the reality of the post-pandemic, leaving organizations with challenges on how to keep talent and the workforce motivated. A “new normal” is being established within work environments. Companies are not requiring people to come into the office full-time and they are developing alternative approaches for work and work settings. Furthermore, companies are no longer functioning in the synchronous model, which is requiring a different way to organize and lead within organizations. This means how office space is used is undergoing changes and what they represent to meet spaces, recruitments, and interpersonal exchange. More companies are allowing people to work full time from home remotely or come into the office one or two days a week.
Since there is a shift and transition into remote work, labor economists are foreseeing another wave in The Great Resignation that will create more problems for the workforce and businesses. Adam Ozimek, a labor economist, predicts that the next phase of remote work will transform economies. This means that remote-first startups will find new ways to work asynchronously to make working remotely more manageable. This work model will allow people to live anywhere they want and still work. Part of the new normal is people have found that remote work is a viable option and worked out better for them than expected. The post pandemic era has offered people the opportunity to make changes. The future of work will continue to change and if you need to make a career change, now is the time to take advantage of the new normal.
Source: Pexels / Tima Miroshnichenko
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