The Great Resignation, Why It's Impacting Employers & Employees

The Labor Department issued that, “650,000 retail workers quit in the month of April in 2021.” Mass exodus in the midst of a global pandemic. What we’ve come to call the Great Resignation. What is the Great Resignation? If you are a working professional, you probably already know. It refers to an especially high volume of employees quitting their job, all over the nation, all over the world. The ultimate cause of this dilemma is pay. Think of this for a moment, a PwC survey reported that, "pay is unsurprisingly the main factor in people wanting to change jobs, with 71% citing it as a key reason."

When the pandemic hit its stride, out of necessity, employees began to work from home. Businesses began hiring remote workers, with no expectation that those new hires would need to come to the office - at least, not until COVID peters out. Working from home became the new normal. Employees got to stay in the comfort of their home. They experienced more flexibility, felt they had more trust from their employers. The average person spends one third of their life working, most often, away from their families. Remote work gave more options to parents with kids at home. According to chicagobooth, Nicholas Booth from Stanford said, “We are home working alongside our kids, in unsuitable spaces, with no choice and no in-office days. This will create a productivity disaster for firms.” Employers weren’t necessarily confident that they’re employees were being as productive as they would be in office, but at least they could keep their business running. Many bosses may have thought that when the pandemic ended, pre pandemic operation (in office) would return. But you cannot give workers more options and agency and take it away again without backlash. Here we are, post pandemic and employees are refusing to go back to the office. Either they stay remote, or they quit and go somewhere else that allows them to work from home. With the stimulus checks from the government and varying unemployment benefits, some people aren’t going back to work at all.

Not everyone can afford to join the Great Resignation, but after the last few years we’ve all had, employees are changing their priorities. In several cases, remote work improves their home lives, contributes positively to their mental health, prevents burnout and more. They feel that they are more understood by their employer. They feel that the work they do is valued higher than the hours imputed. Remote or in the office, employees want to be treated like real people, not just a cog who makes the machine go. Remote or not, employees are thinning out what they are willing to put up with. According to BBC,  the Personio study mentioned, “more than half of the respondents who were planning to quit wanted to do so because of a reduction in benefits, a worsening work-life balance or a toxic workplace culture.” Employees want employers to empathize with them, to more fully understand their priorities and be somewhat malleable to them. Employees are delusional if they think they’ll get everything they’re asking for, but employers are delusional if they think they’ll get away with offering the bare minimum. Dallas Mavericks owner and CEO Mark Cuban explained why, “this is bad because it will hurt the brand's reputation.” It contributes to the idea that C-suite professionals are money-hungry and soulless (dramatic, I know, but a stereotype more often proven then discredited). 

In times like these, employers should reflect on what they are manageably able to offer their employees. They should be aware of what workers are currently prioritizing and see if they can help meet those needs. An employee wants to prioritize their family? Remote work or hybrid makes a big difference. An employee is struggling with their mental health, offering services and good benefits makes a big difference. An employee is struggling financially, providing access to a financial advisor and services makes a big difference. As simple as it sounds, be there for your employees and they might just stick around for you.

Here to help, 

Financially Fit Employees