Three simple words have shaped the world of work since 2021: The Great Resignation.
The phrase coined by Texas A&M org. psychologist and professor Anthony Klotz described the wave of people quitting their jobs due, in part due to the ongoing coronavirus pandemic. The changes in lifestyle brought on by the pandemic led many to re-think how, where and why they work.
By November of 2021, a record 4.5 million workers left their jobs, according to the Labor Department’s latest Job Openings and Labor Turnover report. Americans leaving their jobs hit a record pace during the second half of 2021. In 2022 about 23% of employees will seek new jobs, while 9% have already secured a new position, according to a December poll of 1,250 American workers.
As resignations have slowed from their peak, The Great Resignation has inspired other terms such as “The Great Contemplation,” “The Great Reimagination,” “The Great Reset,” and “The Great Realization.” The collective narrative that inspired these terms has been particularly impactful in encouraging people to evaluate the role of work in their lives, how to impact their purpose, and take back control of their daily lives. As the narrative evolves, people are not making changes to simply find another job. It has become about taking control of their work and personal lives.
What Does This Mean?
There’s no genie in a bottle that can help solve the once-in-a-lifetime (hopefully) challenges caused by the pandemic. Organizations are trying everything they can think of to address talent gaps.
Companies offering flexible work arrangements and sign-on bonuses will become the norm, not the exception to the rule. Some are starting to hire on the spot and take steps like expediting applications and bypassing their traditional interview processes to make a quicker offer and capture talent before they accept offers from other organizations.
As companies struggle to hire, a growing number of leaders have already looked to international candidates to fill open roles, or automation to reduce need. For organizations that embrace international candidates, the remote workforce will provide a significant amount of competition to the evolving remote jobs. Additionally, there is a steep increase in the use of counter offers & “Stay-Bonuses” by organizations to keep their employees.
In the short term, some of these tactics may work, but organizations do need to be cautious of the long-term implications to their organization. One thing is for sure, companies will need to continue the evolution of how they attract, develop and retain their employees if they hope to keep pace with the ever-evolving demands of the digital, physical, and human elements shaping our workforce.
Contact us to learn more about how LAK Group can help transform your leaders into talent magnets and better position your company’s ability to establish a diverse internal pipeline of talent.