COVID-19 has brought many unforeseen challenges, however, one that employers can get ahead of is the Great Resignation. The term was coined in 2019 by Texas A&M’s Anthony Klotz. This prediction displayed a widespread voluntary removal of those within the workforce. As we come to the end of the year, the Great Resignation has continued to gain momentum. According to Harvard Business Review, beginning in April 2021, over four million employees quit within that month alone. This led to a record-breaking number of open positions reaching 10.7 million by July.
Is the worst yet to come? Experts are telling employers to brace themselves as they expect even more employees to quit after year-end benefits, such as bonuses, commissions, celebrations, and PTO, all diminish.
Heading into 2022, this is going to play a major role in the way businesses operate. To attract and retain top talent, one must understand why employees are leaving. Spoiler alert, contrary to popular belief, the once generous government benefits that may have encouraged people to opt-out of actual work are actually not to blame.
There are two key trends that have been identified thus far. First, mid-career employees (those aged 30 to 45 years old) have the greatest increase in resignation rates. It’s possible that this is caused by “pandemic epiphanies,” meaning employees have simply reached their breaking point and are choosing to step away from the heavy workloads and stressors that come along with their current 9-5. The second trend points out that the dramatic variance of turnover rates in different industries. Specifically, both the technology and health care industries have seen much higher attrition. It’s assumed that these industries witnessed such change due to the increase in demand for both during the pandemic, ultimately leading to burnout.
Strategies To Combat The Resignation:
Knowing that the cost to onboard a new employee exceeds $4,000, now more than ever employers need to focus on keeping the talent that they already have. Consider these strategies to help:
- Put work-life balance at the top of your organization’s list
- Invest in your employees – give them competitive compensation, top-notch healthcare, and retirement
- Train leaders to recognize and address burnout
- Create a clear pathway for employee growth by investing in training and development
- Implement “stay interviews,” which consist of management interviewing employees to get a better pulse on their experience and allows the employee to share any recommendations or feedback that they may have.
How GMS can make a difference:
Partnering with GMS allows business owners to have valuable tools to continue to increase employee retention. The Great Resignation is by no means coming to an end as we head into 2022. Partnering with GMS can combat the challenges that await. Contact GMS today to learn how we can help you tackle The Great Resignation.