Causes of the Great Resignation
COVID-19 may have led to the Great Resignation of 2021, during which employees voluntarily quitting their jobs were at a record high.
But what we’re experiencing now is not just a short-term issue caused by the pandemic. Increasing resignation rates began more than a decade ago for four main reasons.
1) Older employees want to retire.
Interestingly, the Great Resignation is also called the Great Retirement. This new synonym came after older workers quit their jobs at a much faster pace than younger workers did in 2021.
Older employees quit because they wanted to spend more time with their loved ones and focus on things that matter to them. They also made this decision with confidence caused by surging stock prices and buoyant real estate values.
In addition, older employees quit because they want to prioritize their health and avoid COVID-19.
2) Workers are reconsidering their careers.
Another main reason behind the Great Resignation involves a shift in employee mindset. According to experts, the fatalities caused by the pandemic have made people rethink the significance of their jobs.
This shift in viewpoint has driven some workers to quit, especially those in demanding occupations.
Frontline employees, parents, healthcare workers, and leaders experience burnout. The natural effect? Staff turnover.
Due to commitments, industries like hospitality, where women make up the majority of hourly workers, have seen more quits. In fact, one in three women considers quitting, switching jobs, or decreasing work hours, according to a 2021 report by Women in the Workplace. Women who do this usually must leave work to care for family members.
Junior staff in the consulting and finance industries have also reported burnout.
During the pandemic, such industries were in high demand. This pushed employees to work hard without the training, mentorship, and customer interaction that made such positions worthwhile. These experiences particularly impacted young workers, leading them to quit.
3) Employees want to move to greener pastures.
National Economic Council deputy director Bharat Ramamurti introduced the phrase Great Upgrade to describe rising resignation rates in low-wage industries.
According to research, the leisure, hospitality, and food service industries had the highest turnover rates. On the other hand, the retail and manufacturing industries grew the most.
However, staff turnover spikes aren’t limited to low-wage industries. Professional and commercial service industries experienced a high and growing quit rate as well.
On top of that, a Pew Research Center survey says that low pay, a lack of opportunities for advancement, and feeling disrespected are the top reasons why Americans resign from work in 2021.
On the bright side, not all workers are leaving. Many are reshuffling or switching occupations within the same sector or between industries. According to an Economic Policy Institute review in November 2021, hiring rates are outpacing quit rates across numerous sectors. This suggests that significant salary growth draws many candidates. It also means that many workers eagerly take high-paying jobs.
4) Workers are afraid of health risks.
Many employees are hesitant to return to work because they are afraid of contracting COVID.
According to a recent Pew Research Center survey involving 5,858 working adults, 64% of workers reported feeling uneasy returning to the office. Meanwhile, 57% chose to work from home due to COVID exposure concerns.
Plus, a Harvard Business Review article says that many workers willingly quit if their employer does not provide a hybrid-work option.
In a study of over 10,000 Americans done in the summer of 2021, 36% stated that if they were not provided a hybrid or remote option, they would look for another job. Meanwhile, 6% said they were likely to resign outright, even if they didn’t have a new job lined up.
The Great Resignation: A Risk for Employers
In addition to coping with the worsening skills gap, business executives must also deal with the unavoidable data security risk that comes with record-breaking staff turnover. Doing so also becomes exceedingly difficult.
When an employee quits a business, data loss likely occurs. According to a recent study, nearly two-thirds or 63% of all employees admitted to stealing data from their prior job so they can use it in their new ones.
However, there are countless others who steal data on their way out the door without even recognizing it.
The effects, whether willful or unintentional, can be equally devastating. As it turns out, the Great Resignation could represent one of the most serious insider threats to employers.
While the benefits of BYOD (Bring Your Own Device) were enormous, the potential negative effects in terms of data hygiene and security were frequently neglected.
It’s a major security gap, with 71% of firms admitting that they don’t know how much sensitive data departing employees often take with them when they move on to greener pastures.
Conclusion
Given the risk the Great Resignation poses, employers must address the growing quit rates.
