We’ve all seen the headlines about the Great Resignation: mass exodus of employees for the last year and a half. But where are they going? And why are they leaving? And what role can HR play to slow or even mitigate the losses in their own organization? We dove in.
What is the Great Resignation?
The Great Resignation is a term coined for people leaving their jobs during the pandemic – mainly in 2021 and 2022. In 2021, according to the U.S. Bureau of Labor Statistics, over 47 million Americans voluntarily quit their job.
Never before has the job market seen employees leave at this rate. At first, it was initially thought that people were stepping back from work, starting their own company, or moving to gig work, and while this makes up a percentage of the staggering number, it doesn’t tell most of the story.
The data suggests people aren’t quitting their jobs to exit the labor market and sit on the sidelines. Instead, the high level of resignation is due to people seeking better opportunities — defined in a variety of ways.
And things don’t appear to be slowing down. In the first few months of 2022, over 4 million people quit their job each month. And currently, almost half of employees are looking for a new job or plan to soon, according to a survey.
Who is most affected by the Great Resignation?
Although it is affecting all ages, education levels, and industries, specific areas are being hit harder than others.
Industries being hit the hardest include leisure and hospitality; Trade, transportation, and utilities; and Professional and business services. For example, 6.9% of those working in the accommodation and food services sectors quit in November 2021, while only 1.7% of those working in finance left their jobs.
Adults younger than 30 are far more likely than older adults to have voluntarily left their job last year: 37% of young adults say they did this, compared with 17% of those ages 30 to 49, 9% of those ages 50 to 64 and 5% of those ages 65 and older.
Why are people leaving?
A new Pew Research Center survey finds that low pay, a lack of opportunities for advancement and feeling disrespected at work are the top reasons why Americans quit their jobs last year. The survey also finds that those who quit and are now employed elsewhere are more likely than not to say their current job has better pay, better benefits, more opportunities for advancement and more work-life balance and flexibility.
Interestingly though, almost 20% said they’d take a new job for the same pay — suggesting factors like health benefits, job security, flexible work arrangements and retirement benefits were also critically important.
How can you retain current employees and even recruit new ones among the competition?
The key to successfully retaining your employees is to listen to their needs. There are lots of way to do this — whether it’s a formal survey or hallway conversations, everything serves as a data point into how your employees are feeling.
It’s also imperative that your employees know and understand everything that is offered to them when it comes to the benefits. Don’t let your employees leave for companies they think have better benefits, when in fact they are just better communicated benefits. That’s where LearnYour Benefits comes in. LearnYour Benefits is a navigation and communication solution for HR professionals to effortlessly streamline Open Enrollment communications and automate year-round promotions. The easy-to-use, video-focused platform accelerates benefits knowledge through modern communication techniques, leading to happier and healthier employees.
Contact us for a demo today to drive year-round engagement effortlessly and maintain rockstar employees while focusing on recruiting great additions to your team.
