It’s not a secret that your current job market is looking quite a bit different now than it did even just three or four years ago. We watched the labor market get turned upside down in the wake of COVID-19 restrictions, and now, it has rebounded and is righting itself in ways not many could have predicted.
The term “The Great Resignation,” coined at University College London's School of Management by Professor Anthony Klotz in May of 2021, refers to the record-breaking rates of voluntary resignation from employment. The Great Resignation–also sometimes called The Big Quit or The Great Reshuffling–goes beyond employees just wanting safer working environments to help combat COVID-19 and better remote work policies (although those things certainly have been factors).
This enormous shift in our labor market is now said to have more to do with a cultural shift that reprioritizes work-life balance, healthy workplace values, more competitive pay, and room to grow. This value-reprioritization is why, in a study from March of 2022, Morning Consult has now dubbed this phenomenon “The Great Reprioritization.” This rebranding, so to speak, puts focus on the real reason for this situation (shifting priorities for workers) and takes it away from the mere consequence of those priorities not being met by employers (resignations en masse).
In the midst of all this shifting, shuffling, and reprioritizing, what action can employers take to provide employees with what they’re searching for?
While an enormous amount of research has been focused on figuring out what has fueled this twenty-year high for resignations, Pew Research Center offers some of the most definitive and damning findings.
In a study surveying over 6,600 non-retired United States citizens, Pew discovered that 63% of employees who left a job in 2021 did so due to low wages, 63% also reported they quit because they felt a lack of advancement opportunities, and 57% said they left their job because they felt disrespected in some way.
Some of the other notable reasons reported in this survey included: lack of access to adequate childcare, not having enough flexibility in working hours, and poor benefits packages.
In this worker economy, the typical expectations for benefits have shifted from basic to robust. Gone are the years of mediocre healthcare coverage and two weeks of PTO. To start, consider revising your time off policies to be more competitive and make sure mental health coverage is included under your healthcare plans. Mental health days are in high demand now, too, and TalentLMS reports that mental health days are important to a whopping 82% of Gen Zers. While these changes may seem dramatic, keep in mind that when you invest in your employees, they invest in you.
Is that great health plan really that attractive if your company has a toxic work culture? In the study by Morning Consult referred to earlier, they reported that 63% of respondents said they left their jobs due to a toxic work environment. Reports of toxic workplaces often have to do with micromanaging policies and a lack of independence. To avoid employees ever feeling this way, be sure to put their autonomy first and cultivate a feeling of trust and respect. Beyond that, maintaining a general atmosphere of understanding and flexibility goes a long way.
We are undoubtedly experiencing a skills economy, and technology has only allowed us to take deeper advantage of this. Gone are the days of needing everyone to live in the same city, town, or even country. Employees want to be good fits for their positions, but that begins with great recruitment and onboarding practices. Before even beginning a hiring search, envision not just what type of skill set is needed for the job, but also the kind of personality. If you take care in your recruitment efforts and match the right employee to the right job, they will feel far more fulfilled.
One of the biggest trends we have seen during The Great Resignation or Reprioritization is people hopping from one field to another, moving to a related field and making lateral career moves. In a study conducted by Gartner of 3,500 workers, they found that one-third of people looking for a new position searched for job openings within their current business first. You already have a rich talent pool at your fingertips: take advantage of it!
The future of work is hybrid; there’s no denying it. In a Return to Work report published by Envoy, they announced that over 60% of employees said having more “flexibility would make them feel more empowered.” To keep your employees content and to attract high-quality candidates, consider how you are preparing for this inescapable future of hybrid work. Do you have easy online communication? The resources allocated to equip your employees with the right tools? Adequate training?
Employees are now demanding their workplaces invest in them more deeply, and businesses are going to need to respond in kind. Luckily, there is plenty that can be done to address the shifting expectations and priorities of the modern workforce.
At the end of the day, a lot of these adjustments fall on management to ask employees what it is they need and want. Communication and open dialogue are key here. Responding to those requests as much as possible can help you set your company up for decades of success and happy employees.
