The Great Resignation Wave

Context: Great Resignation’ crisis seems to be taking over India as more people quit jobs post-Covid.
Note: The Great Resignation is a phenomenon that describes record numbers of people leaving their jobs after the COVID-19 pandemic ends.

• The resignations appear to be a sequel to the supply chain crisis that we are facing. Disruption in labour, especially skilled labour, takes a long time to fix.

Key Trend

• Microsoft’s 2021 Work Trend Index shows 62 percent of India’s workforce has the intention of switching jobs this year, compared to an average of 41 percent globally
• Over 3.4% of the US workforce to leave their jobs every month. Yes, the trend is real: companies like Amazon are losing more than a third of their workers each year, forcing employers to ramp up hiring like we have never seen before.
• Today more than 45% of employees now work remotely (25% full time), which means changing jobs is a simple as getting a new email address. 
• Only 11% of companies offer formal career programs for employees, so in many cases, the only opportunity to grow is by leaving. And wages, benefits, and working conditions are all a “work in process.”

What is 'The Great Resignation'?
The Great Resignation is an idea proposed by Professor Anthony Klotz of Texas A&M University that predicts a large number of people leaving their jobs after the COVID pandemic ends and life returns to "normal."

• Companies now have to navigate the ripple effects of the pandemic and re-evaluate how to retain talent.

Global companies revealed two trends

• Resignation rates are highest among mid-career employees.
• Resignation rates are highest in the technology and healthcare industries.

What's causing the Great Resignation?
Industries with low location and time independence:

• These are business models that are characterized by close proximity of location and time, which implies that providers and receivers of a product or service are at the same place at the same time. 
• These are businesses like dine in restaurants, ship cruises, sporting events, music concerts, passenger airlines, etc.
• All these business models suffer severely from such a crisis due to the nature of their business model which has cascading effects on workers, their participation, motivation, and wellbeing. 
• Services provided at a specific place, but where provider and receiver don’t need to be there at the same time have done slightly better. 

Virtual and remote work

• For white-collar workers, the pandemic afforded many new perks such as the ability to work from home, greater flexibility, a more balanced work-life balance – which were unheard of pre pandemic.
• During the pandemic, some of the most popular employers have announced that their workers never have to come back into the office regularly again, so it certainly will become an issue of employer attractiveness.

What does this mean for the future?

• You have to run your company as if every employee has one foot out the door. 
• It’s time to ramp up your Employee Experience program, focus managers on listening and supporting people, and seriously invest in career pathways and internal growth for your staff.

?Road Ahead

• The Great Resignation is not just an interesting trend from the pandemic. It’s a permanent and long-lasting change in our workforce. And it’s one that’s good for workers and wages, but will put many employers under stress.
• The Great Resignation is a big deal, but let’s use it to our advantage. As we enter 2022 it’s time to focus on your people strategy first. The rest of the business will be glad you did.