This phenomenon may have earned its name from trends in the United States, but there are some reports that ‘The Great Resignation’ knows no geographical boundaries. This post explores why the HR community need to devise proactive strategies to combat turnover and redesign the employment proposition.
Three little words have generated robust discussion across the globe and instigated a significant employee movement. In late 2020, organisational psychologist and professor at Texas A&M University, Anthony Klotz, coined the term ‘The Great Resignation’ as a way to describe a huge surge of employees quitting their jobs due to the coronavirus pandemic. Klotz’s research indicated that countless Americans were resigning to rethink and rewrite how, when, and where they work.
Whilst Klotz’s term has dominated global headlines and become widely understood, others have come up with their own versions such as ‘The Great Realisation’, ‘The Great Reset’ or even ‘The Great Reimagination’. Whatever the term, the narrative suggests that workers are reflecting on what work will look like for them and how they can incorporate work around life.
When the pandemic began, the job market was uncertain and most people bunkered down and hoped that the storm would quickly pass. Organisations soon realised that they needed to act quickly and what followed was mass redundancies, reduction of hours and stand downs.
In the beginning, the workers who avoided impact chose to hold on to their job as a precious commodity but as the pandemic progressed, so did employee frustration. Those that had the capacity to do so started rethinking what was important and how they could find greener pastures.
The theory is that the enormous duress COVID-19 placed on workers from the frontline right up to senior executives resulted in a wave of resignations as employees decided to take control and rewrite their own work destiny. The significant exodus caused by The Great Resignation has perhaps led to a power shift in the employment relationship with workers no longer prepared to settle for roles or conditions that don’t meet their needs.
For some people, being forced to work from home and juggle home schooling created the lightbulb moment, and for others it was relief from the long commute to work. Suddenly there was a realisation that perhaps there was a better way to fit work into life. There was a shift towards a new psychological employment contract where workers redesigned what they wanted in exchange for their efforts, skills, and output.
Some employees moved to competitors and others changed industries completely. We have seen engineers become marketers and senior executives trading corporate life to buy a food truck. Others have packed up the family in the pursuit of the ultimate tree change where a new employer will support remote working. It appears that out of great adversity has come opportunity and a hunger for change.
For some employers, it may look like the train has already left the station, and there is nothing they can do to prevent further resignations, but that is not necessarily the case. The Great Resignation has undoubtedly had significant impact on employers, but that has also brought opportunity.
The following 4 tips will support employers in combating The Great Resignation:
The global pandemic did more than press pause on the economy, it fundamentally changed the way business is done. As businesses pull back their operations, it is imperative that leaders and the HR team review and update roles for the new way of working. For example, is it really necessary for the operations manager to travel monthly or can this be done via video conferencing? Does the 9am-5pm rhythm still work for the team or is there a way to introduce asynchronous work? Is the position still full-time or is part-time more appropriate?
There are some employees that are hooked by the annual bonus structure, the strong promotion pathway, or the access to unique and progressive projects. Unsurprisingly, 2022 may just struggle to deliver on these employee expectations. The removal of these hooks may result in employees seeking alternative jobs outside of your business. It may seem all ‘doom and gloom’, but understanding this risk empowers organisations to start the conversation early. It is also a chance to look at this as a unique opportunity to reshape the employment proposition and to meet the needs and wants of employees in an unprecedented work climate.
It doesn’t need to be an ‘all or nothing’ scenario. Mentor and equip leaders with the tools to have the tough conversations early and often. Ask questions like:
Think of it like a customer needs analysis scenario or conducting due diligence before a sales pitch. When leaders understand the sticking points for each employee, they are able to consider offering employees to quit part of their job.
Many employers used to think of themselves as forward thinking and a leader in flexibility, only to learn that they are not. It is easy to blame the pandemic or the economy for the countless resignations, but is that really the issue?
Research suggests that the freedom to work from anywhere has become the most sought after employee benefit with many rating it higher than a promotion or pay rise. Achieving the ultimate work life balance has been a pipe dream for many, but in 2022 and beyond this dream may just become a reality. Some employers have been slow off the mark, still thinking a dentist appointment in the middle of the day makes them a flexible employer. Others are realising very quickly that flexibility comes in many shapes and sizes and when they get the right formula, it becomes the greatest employment hook of all time. Working from home, hybrid working, working from anywhere and asynchronous working are approaches your team members might be looking for.
Employers are encouraged to consider how they can offer a suite of flexibility options as a key attraction and retention hook, and to start thinking of what they may gain as opposed to what they will lose. There will always be areas where a business cannot compromise, but so far the pandemic has taught us that when employers seek to achieve a win-win scenario, the transition to the new world of work has been mutually beneficial and driven great success.
Employers are encouraged to revise their approach to flexibility to ensure that it best meets the needs of the business and the employee group. Care should be taken to ensure that key changes in working arrangements are conducive to success and compliant with relevant industrial relations law and contracts of employment.
Ai Group has experienced HR consultants who can partner with your business to devise flexible workplace strategies designed to increase engagement and operational efficiency. For assistance with your workplace matters, Members of Ai Group can contact us or call our Workplace Advice Line on 1300 55 66 77 for further information.
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Georgina is Senior HR Content Editor – Publications at Ai Group. She is an accomplished Human Resource professional with over 25 years of generalist and leadership experience in a broad range of industries including financial services, tourism, travel, government and agriculture. She has successfully advised and partnered with senior leaders to implement people and performance initiatives that align to business strategy. Georgina is committed to utilising her experience to create resources that educate and engage and is passionate about supporting members to optimise an inclusive workforce culture that drives performance.
