What is The Great Resignation?
The COVID-19 pandemic changed the world as we know it, and many people had their lives turned upside down as a result. Some lost their jobs; others lost loved ones or their health, compelling a large percentage of the population to reprioritize the things they care about most.
Perhaps time in quarantine, and the fear of death, have made people realize that life is short. As a result, some have decided to change companies or work fewer hours to spend more time with family and friends. Others are retiring early or leaving their careers to pursue their passions.
Feeling unappreciated is one of the most commonly reported reasons people left their previous roles. Essential workers are a great example of this. They are often the lowest-paid staff members, but companies still expected them to continue showing up to work while others were safe at home. Understandably, many felt that their safety was not a priority for their employers and that the low wages did not justify the high personal risk. As a result, they have fled their old positions in mass and have not returned since.
What does the labor shortage mean for your company?
The Bureau of Labor Statistics estimates that the cost of replacing an employee is up to 2 times an employee’s salary, and 47.4 million Americans quit their job in 2021. There are now more job openings than workers able or willing to fill them, and companies that want to retain and attract the best workers need a new approach.
The balance of power has shifted, and workers have more leverage than ever before. As a result, companies that want to stand a chance must start thinking of the value they provide potential employees beyond just a steady paycheck. Those that do not will continue to struggle to maintain and attract key talent.