Not Just the Quitters: How the Great Resignation Impacts Everyone
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Posted on 06-10-2022, Read Time: 5 Min
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If you follow any news outlets related to human resources, it is inevitable you have seen two or more articles a day around the Great Resignation (or Great Reshuffle, or Great Retirement).
Often, we see statistics like “4.3M people quit or changed jobs in August 2021” or “employers are seeing 3% voluntary quit rates in 2022,” however, we are just now starting to see articles about the impacts on the people experiencing the full brunt of the Great Resignation (Washington Post).
To understand how to navigate these uncharted waters we must first understand the types of people being impacted by this historical event.
Often, we see statistics like “4.3M people quit or changed jobs in August 2021” or “employers are seeing 3% voluntary quit rates in 2022,” however, we are just now starting to see articles about the impacts on the people experiencing the full brunt of the Great Resignation (Washington Post).
To understand how to navigate these uncharted waters we must first understand the types of people being impacted by this historical event.
Workers: Candidates and Employees
There is no argument that candidates are experiencing the largest benefits of the Great Resignation. Record turnover, coupled with record low candidate volumes, has created a perfect opportunity for candidates to seek out new jobs with minimal competition and bigger payouts (salary, signing bonus, benefits, etc.) from employers willing to foot the bill and avoid prolonged job openings.
Interestingly, those low candidate volumes are even more strange when you take into consideration that the U.S. economy is seeing the lowest weekly jobless claims in 52 years (Reuters).
Fortunately, we are able to directly measure candidates’ preferences for new roles and their motivating factors for looking for new employment opportunities. Our own survey of 10K+ candidates during the months of March and April 2022 yielded some interesting results.
One surprise was the landslide representation of the primary reason for considering a new role. Across industries, 58% of respondents said they are considering a new role because they do not see opportunities for advancement or growth in their current roles (Graph 1).
Within industries, healthcare and banking/financial services tied for the highest percentage of this response at 67%. Retail had the lowest percentage of any industry at 52% for the same response.
Pay is regularly reported to be a significant motivating factor for those seeking new roles in the Great Resignation, however, our survey results found that only 21% of respondents were seeking new employment because of a dislike of their current pay or compensation. Retail had the highest percentage of responses naming pay/compensation dissatisfaction (24%), while healthcare had the lowest (15%).
Other factors widely credited with driving the great resignation in the press were not supported by our survey results. Of the 10K+ respondents, only 15% stated they were looking for new work because they dislike the work/tasks of their current job, 5% stated they dislike their team or supervisors, and only 0.5% stated they were leaving due to disliking interactions with their customers or patients.
Interestingly, those low candidate volumes are even more strange when you take into consideration that the U.S. economy is seeing the lowest weekly jobless claims in 52 years (Reuters).
Fortunately, we are able to directly measure candidates’ preferences for new roles and their motivating factors for looking for new employment opportunities. Our own survey of 10K+ candidates during the months of March and April 2022 yielded some interesting results.
One surprise was the landslide representation of the primary reason for considering a new role. Across industries, 58% of respondents said they are considering a new role because they do not see opportunities for advancement or growth in their current roles (Graph 1).
Within industries, healthcare and banking/financial services tied for the highest percentage of this response at 67%. Retail had the lowest percentage of any industry at 52% for the same response.
Pay is regularly reported to be a significant motivating factor for those seeking new roles in the Great Resignation, however, our survey results found that only 21% of respondents were seeking new employment because of a dislike of their current pay or compensation. Retail had the highest percentage of responses naming pay/compensation dissatisfaction (24%), while healthcare had the lowest (15%).
Other factors widely credited with driving the great resignation in the press were not supported by our survey results. Of the 10K+ respondents, only 15% stated they were looking for new work because they dislike the work/tasks of their current job, 5% stated they dislike their team or supervisors, and only 0.5% stated they were leaving due to disliking interactions with their customers or patients.
These insights highlight a path forward for how to address the needs of employees so you can avoid any additional casualties to the Great Resignation. Our candidate survey reinforced a common statistic that about 45% of people looking for new jobs are currently employed. More people than ever are considering if they should leave your organization, so it is critical you give them a reason to stay.
More pay is perceived as a common problem-solver, however, it is not the most important thing for everyone. Employees want purpose in their work, to be appreciated, and to feel their employer is invested in them. They want tools to understand where their skills, experience, and uniqueness are the best fit within your organization and where they may be lacking in any of those areas when it comes to their ability to transition internally.
Ultimately, supervisor and interpersonal relationships at work are not driving away your employees, it is the lack of fit and belonging felt by your employees.
Employers: Managers and Human Resources Professionals
Hiring managers are one of the most overlooked (and overworked) groups being impacted by the Great Resignation. Recent research has begun to point to the burnout being experienced by hiring managers who struggle to fill openings on their team and either have to pick up the extra work for themselves or support their short-staffed teams and fear that overworking them will lead to more turnover.
A recent Greenhouse Hiring Manager Report, published in Recruiting News Network shared that 75% of the 1,500 hiring manager respondents expect hiring to become more difficult through the end of 2022 (Recruiting News Network). Even more worrisome, 84% of the respondents reported they are experiencing burnout due to the difficulties they face as they navigate through the current labor market.
HR Professionals are no strangers to the challenges of attracting and retaining talent for their organizations. Some of the new data on the mental state of HR professionals is extremely concerning. Forbes, with the help of Workvivo, reported that 98% of the 520 HR professionals surveyed are burned out. Almost as concerning, 94% said they felt overwhelmed in the past six months, while 88% of respondents said they dreaded work (Forbes). These sentiments are accompanied by only a meager 29% of HR professionals feeling that their work is valued in their organization.
A recent Greenhouse Hiring Manager Report, published in Recruiting News Network shared that 75% of the 1,500 hiring manager respondents expect hiring to become more difficult through the end of 2022 (Recruiting News Network). Even more worrisome, 84% of the respondents reported they are experiencing burnout due to the difficulties they face as they navigate through the current labor market.
HR Professionals are no strangers to the challenges of attracting and retaining talent for their organizations. Some of the new data on the mental state of HR professionals is extremely concerning. Forbes, with the help of Workvivo, reported that 98% of the 520 HR professionals surveyed are burned out. Almost as concerning, 94% said they felt overwhelmed in the past six months, while 88% of respondents said they dreaded work (Forbes). These sentiments are accompanied by only a meager 29% of HR professionals feeling that their work is valued in their organization.
What You Can Do
HR professionals now know they must prioritize making advancement and development opportunities more transparent within their organization or they risk leading employees to seek opportunities elsewhere. Others within the organization who stand to be impacted by organizational turnover still have some things they can do to avoid becoming victims of the Great Resignation fallout:
- Show job seekers how they can make an impact within your organization through your application process. Hiring managers often say they want their candidate experience to be fun, which is a lot to ask when considering how fun it is to provide one’s employment history or contact information for several references, who will never be called. Worry less about a fun application and focus more on giving candidates an opportunity to put their best foot forward and make their case as your best option to select. Showing that you care about wanting to get to know them as candidates signals that you will also care about them as employees.
- Use responsible technology to hire, promote, and develop talent. By leveraging data-driven assessments to understand people, you can confidently identify the right people to bring into your organization. People who are most likely to succeed/stay longer, and you can ensure they are placed in the right roles they are most likely to enjoy. You can also help employees chart realistic career paths within the organization and identify the specific developmental steps they need to take to prepare them for the next level. Ironically, using these technologies can help add a more personalized touch to your discussions with candidates and employees.
- Tell someone you work with they are doing a good job. Use any internal review/shoutout/kudos/rockstar programs and go give someone positive feedback today. Be the catalyst within your team that celebrates the achievements of your teammates and team members. You may just save yourself from losing an employee or co-worker that would lead to you inheriting their additional tasks in your future.
Author Bio
| Alex Reilly has over 10 years of experience working with Talent Science and currently leads Product. Alex brings his knowledge and passion for Talent Science to the product vision and strategy to ensure insightful and predictive tools are being created for everyone from tactical end users to strategic executive stakeholders for years to come. Visit www.infor.com Connect Alex Reilly |
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