Mass resignations of workers is a trend primarily limited to the United States and a few European countries.
By Priyadarshi Nano Pani
The 2021 calendar will go down as an unpleasant year, even forgotten for many organizations in the United States. Beginning in April 2021, the Great Democracy saw the beginning of what they called the “Great Resignation.” The country has seen a tidal wave of resignations – about 20 million American workers have quit since April 2021 (source: US Bureau of Labor Statistics), and mass immigration is on the rise. The phenomenon of resignation has remained unusually high ever since. There are 14 million job openings for a US workforce of 160 million. This means that skilled talent has ample opportunities to move on to the next workplace. But even workers with no work in sight have quit. This is what makes The Great Resignation so profoundly challenging.
The pandemic has turned nearly every sector on its head. It has shown its ripple effect on the US labor market. The technology and healthcare sectors have been the worst victims of an unprecedented rate of decline. Why do companies find it difficult to overcome the challenge of employee retention? I feel that the focus of many organizations is on offering transaction benefits. But when the pandemic changes the business model, no extra salary or tempting perks won’t be enough to attract and retain your best talent. Our workplaces have experienced seismic shifts after the outbreak of the pandemic. People choose flexible workspaces and don’t want to sit glued to their desks to occupy 9-5 positions. This trend is resoundingly true for the US workforce. The vast majority of knowledge workers prefer the teleworking role. This trend has fueled the major resignations.
Mass resignations of workers is a trend primarily limited to the United States and a few European countries. But organizations need to diagnose the real reasons why workers are leaving in droves before this crisis spreads beyond borders. Burnout is a critical cause that most employers need to actively address. More than wages, workers feel valued when they are valued by managers and the organisation. Obviously, the solution, in my opinion, is to invest in a more satisfying employee experience to meet the new expectations of independence and flexibility in the workplace. Employees want meaningful social interactions. They crave a sense of shared identity. Creating an immersive employee experience can check all the boxes. To add, organizations can take a data-driven approach to figuring out why people quit and ways to improve retention rates. When creating a digital organization first, after the pandemic, we must not abandon the human touch. Let’s raise the level of employee experience. This is the secret recipe to stop the insane rate of attrition. The recipe for “The Great Resignation” is also likely to turn into the “Great Attraction”.
(The author is the founder and CEO of CSM Technologies Ltd. The opinions expressed are personal and do not reflect the official position or policy of Financial Express Online.)
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