The Big Quit. The Great Reshuffle. No matter what you call it, the Great Resignation isn’t great for employers. Since 2021, record numbers of employees have quit their jobs—about 48 million to be exact. By March of 2022, it was common for about four million people a month to leave their jobs. During this same time frame, there were 11.3 million open jobs. For hiring managers, it’s an ugly and uncertain time.
How is the Great Resignation affecting business in the U.S.? What’s next for the job market in these “interesting” times?
What’s Happening in the Job Market?
What’s causing the Great Resignation? Some of it is an aftereffect of the COVID pandemic:
- Some employees evaluated their lives and priorities during the crisis, and they found their jobs wanting.
- Some ended up leaving the workforce to care for their kids, while others took early retirement.
- When employers began demanding that employees return to their offices, many remote employees walked away to find a remote position elsewhere.
- Some employees felt mistreated and overworked during the pandemic. Many left their industries entirely to pursue something else. Food service was an industry hit hardest by this trend.
Pew Research polled the American workforce and found that resignations were happening because of “low pay, a lack of opportunities for advancement and feeling disrespected at work are the top reasons Americans quit their jobs last year.” What is this doing to employers?
The Employer Response to The Great Resignation
Employers are raising pay to retain existing employees and attract new ones. The Society for Human Resources Management (SHRM) says they’re also increasing benefits for the same reasons. They report that 58% of employers are not only giving annual increases to existing employees but have also raised starting salaries from last year. Still, others are offering hiring bonuses.
Employers are also increasing their remote work options for employees. SHRM reports that 42% of employers have created new remote or flexible work options that they didn’t have before. That’s a good thing because 64% of the workforce says they will consider quitting their jobs if employers force them back to an office.
Foundr suggests that the Great Resignation has some benefits for employers. They say, “These recent trends will bring more energy and efficiency to your business. Millions of unengaged employees stood up from their desks this past year and decided to leave their jobs. If they’re now more confident about what they need in order to find purpose in their work, then they will be valuable assets to the companies who land them in the Great Reshuffle.” By their suggestion, all these quitters give your company the chance to replace those employees with workers who are more engaged and valuable to your company. But to do this, you need new weapons in the war to find talent.
Stellar Staffing is the best resource for finding top-quality talent. We work closely with our employer clients to double their efforts to fill their hiring needs. Call on our team today to find out how we can help you offset the damage from the Great Resignation and keep moving forward.