Huge resignations in 2022: Why are so many people quitting jobs across the globe?
The coronavirus pandemic has brought unprecedented changes to the corporate world, and an increasing number of resignations is one of them. Resignations have risen rapidly across the globe since 2021. According to the U.S. Bureau of Labor Statistics, 4 million employees left their jobs in July 2021. The numbers have been increasing quickly since then.
The trend of surging resignations in 2021, especially in the USA, has been termed the “Great Resignation.” It has been the economic buzzword during the pandemic. The trend has not been ended yet, and workers are still quitting their jobs rapidly. According to the U.S. Department of Labor’s JOLTS report, around 4.3 million employees left their jobs in January 2022. The numbers are startling.
The reasons why an employee wants to leave the company may be obvious, such as feeling undervalued or wanting to pursue other opportunities. Or, the tension between personal lives and work expectations can also put the interests of employees and employers at odds. These reasons may be common, but many others reasons impact the employees’ decision to quit a job. Read the following blog to learn about these reasons.
• Toxic work culture
According to a study by MIT Sloan School of Management, toxic work culture is one of the major reasons for driving “Great Resignation.” The research showed that more than 40% of employees were thinking of quitting their jobs at the start of 2021. More innovative companies were experiencing a higher attrition rate. Contrary to the belief that salary dissatisfaction is the reason for leaving the job, the study implied that the issue is deeper. According to another study, a toxic corporate culture is more powerful than salary in predicting the company’s retention rate. Employers must make some strategies to improve the workplace culture and decrease the turnover rate. They can plan some fun activities to foster a healthy work culture. Moreover, they must focus on building meaningful relationships in the workplace right from the start of the hiring process. Companies must use video interview software to avoid any biases, and establish a positive work culture.
• Lack of work-life balance
After the coronavirus pandemic, people have started to prioritize their health. Therefore, they look for a company where they can maintain a work-life balance. Too much work pressure tends to cause poor mental and physical health. It can also ruin your social life. Poor work-life balance inevitably puts a strain on relationships, making employees stressed and demotivated, resulting in quitting jobs. It is necessary to lead a balanced life if you wish to achieve your goals. However, developing a harmonious work-life balance can be critical, but it is essential.
Employers need to understand that being a good employee doesn’t mean working for more than 40 hours a week. Having a balance between work and personal life can improve employees’ mental health, which automatically results in an increased retention rate.
• Stagnancy in the daily work pattern
Many employees are leaving their jobs because they feel stagnant at their workplace. They look for new opportunities to try something new. According to a study conducted in September 2021, 50% of job seekers are now shifting towards jobs where they have little or no experience. Employees feel exhausted and frustrated due to similar work patterns, and therefore, they want to try something new. Another reason that is responsible for the increased number of resignations is the desire to find a more stable job.
• Unrecognized and devalued employees
Employees want recognition for their hard work. When leaders ignore employees’ hard work, they may seek value elsewhere. From low trust environments to unsafe working conditions, all can lead to low retention rates. When managers undervalue their employees, they are only making workers demotivated. An unrecognized team is disengaged and dissonant. When employees feel they don’t have a voice, their productivity decreases. This can even result in an increased turnover rate. However, managers usually don’t set out to decrease motivation; it just happens without strategic leadership.
Implement a system where employees feel valued; they need to feel like they are an integral part of the organization. Ensure to give timely feedback to your employees to boost their morale. Appreciate them for their excellent work, and encourage them to do better.
• Limited growth in the organization
Growth opportunities must keep a similar pace with the expectations of employees. Each employee expects a workplace where they can thrive, and a lack of growth opportunities forces them to leave the job. Employee growth plays an essential role in keeping them satisfied and happy. According to a survey, 42% of workers said that development and learning were the most significant factors when deciding which company to choose for the future. If they don’t find any opportunities to grow in the workplace, they start to look for another job.
To avoid this situation, companies can implement growth strategies in business. Managers must make professional development strategies to mitigate the turnover rate. When employees see a clear career path at the organization, they are more likely to stay there for a longer period.
• Unavailability of flexible work options
The pandemic has accelerated the remote work trend, and companies embraced digitization amid social distancing norms. Providing flexible work options has become more important than ever before. Many employees left their jobs because of the poor response of the organizations towards the pandemic and not switching to remote work being on the top. However, all companies offered work from home during the pandemic, but many businesses reopened as soon as the social distancing orders lifted. Many employees were not in favor of this, and they preferred to quit their jobs. To improve your company’s retention rate, focus on providing flexibility in the job.
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• Job insecurity
Job insecurity is another reason for fueling “Great Resignation.” It is quite easy to overlook the dominance of job insecurity, but that fear still lurks in the employees’ minds. It can have a bigger impact on the team than one may think. When workers have a state of uncertainty about their jobs, it leads to job insecurity. It causes so much stress that their health starts to deteriorate. In that situation, employees prefer to quit their jobs and look for better opportunities.
Employees are rapidly moving to other jobs, and the urge to quit the job appears to stay here due to these major reasons. Business leaders must understand that the key to success is retaining employees. Therefore, it is essential to implement the needed strategies to reduce the turnover rate. Companies must promote a healthy work culture to increase productivity and business growth.