The Great Resignation10/27/2021
This article by GEETANJALI M, Rangam Head of HR & Workforce Solutions, was originally published on LinkedIn.
A profound phrase “the Great Resignation," Created by organizational psychologist, Anthony Klotz, hits home for most in HR and the Workforce Solutions industry. According to the U.S. Bureau of labor statistics, the number of resignations at the end of August 2021 increased to 4.3 million which is a 2.9% increase since July.
We are seeing this trend for various reasons:
· Multiple job opportunities
· Better pay & enticing compensation packages
A 40-hour work week has almost become obsolete with people working remote. People are checking their emails at night and the weekends, working extra hours to get tasks completed etc. According to the global statistics from ADP Research Institute, one in 10 respondents say they work at least 20 hours a week for free. This has significantly increased burnout.
While we have overworked employees, we are now finding that they are not feeling included or valued. The Predictive Indexes of Talent Optimization shows us that on average, 47% of high-performing employees left their company last year and the trend continues.
Why such a significant shift?
A survey conducted by Global Human Capital Trends showed that only 12% of the executives believed that they were driving the right culture for their people while 19% believed their organization had the right culture.
Executive in small to midsized organizations spend an average of 60% of their time putting out fires and solving people problems. When companies have clear talent optimization strategy and practices, they outperform the competition and spend approximately 31% less time on people problems. This is only possible when the executives and employees are aligned with the mission, vision, and culture of the organization.
There isn't a one size fits all.
Thus, it becomes critical for business to have a regular pulse on how engaged their employees are. Learn about the current culture, not what you think it is. What are the driving factors for your employees. Create a retention strategy based on your needs. And most importantly lead with empathy. Only 22% of companies from the trends survey said they knew what’s driving disengagement among their employees.
While people are pursuing new opportunities, companies with great culture are continuing to maintain good retention rates.