Over the last few years, the world has changed dramatically, and it will never be the same again.
Public health restrictions have shuttered thousands of small businesses, many for good, while the panic provoked by the pandemic caused an incredible amount of job losses, and prevented people from working in the ways they normally would.
Many have suffered unimaginable losses, both in their personal and professional lives, and at the same time, employers have been experiencing a mass exodus, which is now being called “The Great Resignation”.
But what exactly is The Great Resignation? And how can business owners work to mitigate the destructive effects of this new phenomenon?
If your business has dealt with unprecedented turnover, you’re still struggling to fill positions left by employees who’ve quit, or you just want to know more about this trend, then you need to keep reading.
In this article, I’m going to explain what The Great Resignation is, what caused it, and discuss how your business can survive this extraordinary event by focusing on the wellbeing of your employees.
What is The Great Resignation?
After so many of us got laid off and locked down in the spring of 2020, this series of events snowballed into what is now being called The Great Resignation.
Also known as “The Big Quit”, the term refers to the record number of people who quit their jobs, starting in the spring of 2021, primarily in the United States, but also throughout many other parts of the world.
There are varying theories as to what exactly took place, but from my point of view, what happened is a no-brainer.
As people’s lives were upended by the “new normal”, a lot of them started to have existential crises.
If they didn’t get laid off, or have to shut down their businesses indefinitely, they were being forced to work remotely, and these changes, coupled with all the fear and division surrounding COVID-19, made people start to question what they were doing with their lives and make radically different choices.
Now, that’s not to say that the pandemic was the only reason for The Great Resignation. Several other factors have contributed to this event, most notably the fact that a lot of people chose to retire in 2021.
Statistics show that in 2021, older people chose to resign at a higher rate than normal, and many of them did so at a younger age than what we’re used to seeing.
That being said, I think it’s safe to say that this trend came as a result of both a higher rate of retirement, as well as all the issues associated with the pandemic.
Why Did it Happen?
Now that I’ve defined The Great Resignation, I want to provide a bit more context by peering into what I think might have motivated so many of us to resign.
Here are some of the reasons why so many people quit their jobs:
- They were scared about going back to work in person, and when employers demanded that they did, many thought better of it and just quit
- For many, they got a taste of what it was like to work from home, loved the flexibility and convenience, and decided to quit and find a job that’s fully remote
- After being forced into incredibly difficult situations, many people started to seriously reconsider their priorities
- A year of lockdowns created severe mental health problems for people, and some of them just couldn’t handle the same amount of work or stay motivated to continue in their current jobs
- People who were already planning to retire in 2020 chose to delay that decision until they had greater certainty about how the pandemic was going to play out
- Those who may have retired later in life chose to do so earlier, both as a response to fear of catching COVID-19 in the workplace, and also as part of an overall reconsideration of their values, such as wanting to spend more time with their families
Now, this is just a brief list, and there are certainly a lot more reasons than what I listed above, but I think this should give you greater insight into how this whole thing went down.
What You Can Do As a Business Owner
If you’re a business owner and you want to alleviate the effects of The Great Resignation, one of the best things you can do is focus on the wellbeing of your employees.
Let’s face it, since 2020, many of us have had our mental health destroyed and our lives ruined, so today, when employers take action to show they care about the wellbeing of their employees, it’s going to go further than it ever has.
More and more people are expecting employers to do this sort of thing, so as a business owner, it’s going to put you in a much better position, both in terms of current and potential employees.
The ideas below represent just a sampling of all the things you can do to put a focus on employee wellbeing, but they should give you a great place to start.
Remote/Hybrid Work
Since the lockdowns began in 2020, more people than ever before have been working remotely, or on some sort of a hybrid work schedule.
And because of the hysteria caused by COVID-19, many people don’t want to go back into office again.
A survey conducted by Harvard Business School found 81 per cent of respondents don’t want to return to the office or would prefer a hybrid work schedule, 61 per cent would like to work from home 2-3 days per week, and 27 per cent said they want to work remotely full-time.
Moreover, it found that only 18 per cent of respondents want to go back to the office full-time.
That being said, if you can offer remote and/or hybrid work options, it’s going to make your current employees more likely to stay with you, and position you as a more attractive option for job seekers.
And because so many people are stressed out and scared about COVID-19, it’s also going to show that you care about their health and wellbeing.
Work-Life Balance
As I said above, over the last two years, people have been pushed to rethink their priorities, and as a result, I think many of us are starting to think more about having better work-life balance.
So, if you’re running a business that expects people to be on-call, work odd shifts, or just long hours in general, it might be time to reconsider.
Especially if a lot of your employees have quit, or you’re finding it difficult to fill vacant positions, it’s probably a sign that people are burnt out, or not willing to work those hours in the first place.
At the end of the day, being more reasonable and flexible about how you schedule your employees will show them you care about their health and wellbeing, and it’ll make other people more likely to want to work for you.
Health-Focused Perks
Another simple thing you can do to show employees you care about their wellbeing is to provide them with health-focused perks.
Whether you make it part of their benefits packages, or just surprise them with some incentive to be healthier, either way, it’s going to have the same effect.
If you’re looking to do something more extravagant, you could try setting up a gym at the office, offering discounts for things like massages or yoga classes, or even including a gym membership as part of your employee benefits.
But if you’d rather do something a bit less expensive, try stocking the break room with healthy snacks, providing nutritious meals for your team every once in a while, or leading your employees in a stretching session every morning.
Higher Pay
As I’m sure you already know, people love to get paid.
I know this seems obvious, but it is highly relevant to The Great Resignation.
In a recent survey from Payscale, businesses were asked if they think they’re losing more talent than in prior years due to inadequate pay increases, and 44 per cent said yes.
Part of the reason for this, as was shown in the survey, is that in 2020, many businesses chose to cut, or freeze pay as a response to the pandemic.
Sadly, when these same businesses were asked if they gave larger pay increases in 2021 to make up for lower pay in 2020, 33 per cent said no, and they don’t plan to do so in the future, either.
Now, especially after what’s happened since 2020, I understand that a lot of businesses just simply can’t afford to offer higher pay.
But the fact of the matter is if you can pay more you should because giving employees more money provides an incentive for them to stay, and makes your business more attractive to job seekers.
In addition, offering higher pay is one of the most substantial things you can do to show your employees you care about their wellbeing.
I say this because for many people, having more money can completely change their life, which can reduce stress, make them happier, and have a profoundly positive effect on their health.
Is your business suffering after struggling from the effects of The Great Resignation? Do you need help figuring out how to retain more of your top talent, or how to fill gaps in your workforce? Contact me to discover how I can help you alleviate retention issues and make your recruitment process easier.
