The great resignation was a phrase coined by psychologist Anthony Klotz. According to the US Bureau of Labor Statistics (BLS) a record 4.3 million people resigned in August 2021. Is it largely been fuelled by burnout? Or other factors like the shift to working from home and the need to move into a more stable, better paying profession is behind this exodus?
I have been thinking long and hard about it and here is my take on this phenomenon that has literally taken the world by a storm.
Are executives across all levels a part of this?
The Great Resignation hasn’t really affected “Senior Management opportunities” to the level of supervisory/ operatives or administrative levels. This is partly due to senior managers staying in situ longer. Their retirement pensions or shareholding were adversely affected during the pandemic, leading to many deferring retiring. Also, as companies “battened down the hatches” in the pandemic or put growth plans on hiatus, companies didn’t seek to bring in new senior managers.
The Great Resignation or the Great Reconfiguration?
A large swath of workers is simply reconfiguring what their careers look like. This is driven by people experiencing a different work/ life balance and having a “pandemic epiphany.”
The Great Resignation or The Great Reshuffle?
This is being driven by companies coming out of their pandemic blues and focusing on growth and new strategies. Therefore, the number of vacancies has risen significantly in the past 6 months.
Who is more likely to move?
Employees, particularly “Generation Z” are more likely to move roles. This had ceased during the pandemic and now economies are emerging from the imposed lockdown, Employees are once again being tempted to move.
Is Inflation driving the Great Resignation?
In the past 6 months, inflation in numerous economies has risen considerably and has yet to peak. With inflationary pressures affecting disposable income, many employees are looking at alternate employers in sectors where salary levels are traditionally higher.