The Great Resignation, also known as the Big Quit, describes the ongoing trend of Americans voluntarily leaving their jobs since spring 2021. The term was coined by texas A&M management professor Anthony Klots. Since the pandemic, people have been rethinking work, how they’re valued, and how they spend their time. Americans are leaving their jobs for more money, more flexibility, and more happiness. The result has been a wave of resignations, as 4 million people left their jobs in April alone, according to the Labor Department. Meanwhile It’s been tough for employers to find new employees, despite the huge unemployment problem
Industries like Hospitality, transportation, utilities, and retail — including those in arts and entertainment, and restaurants — have the highest percentages of people quitting.
Hospitality
Hospitality and restaurants is particularly affected. The industry isn’t for the faint of heart, typically in this field you’re working crazy hours and getting little pay all week. Generally, this industry attracts young people looking for extra or side income. Most of them tend to leave to get permanent jobs after a few years.
Hospitality and food service have always been about people-centric experiences. They’re all about bringing customers joy, making memories, and celebrating joyous occasions. Those who devote so much effort to creating these moments for guests deserve to have an equally rewarding experience behind the scenes as well. However 58% of hospitality employees intend to quit their jobs by the end of the year, according to the online job marketplace joblist. Most are even okay with quitting before they have another job lined up.
Trucking industry
The lack of truckers in America’s supply chain is an increasing concern. Overworked and uncomfortable working conditions have left the US with a shortage of truck drivers. A wave of retirements and people quitting for less stressful jobs is causing chaos in the supply chain, which leads to empty shelves, frantic holiday shoppers, and backed up ports. As many as 80,000 drivers will be out of work by 2030, according to a new report by the American Trucking Associations.
A shortage of young truckers has alarmed trucking companies, which say there aren’t enough to replace those who are retiring. It’s hard to attract younger drivers because of the stereotypes, the isolating lifestyle and the focus on four-year college degrees. Trucking companies also have a hard time keeping their best people with the turnover rates today around 90%.
Even though some companies offer salaries of more than $70,000, fewer people are willing to spend long periods away from home. Also as a result of the pandemic, there has been more time spent waiting to unload or load cargo, so drivers who are typically paid by the mile are getting lower wages
Utilities
Across the power sector, there’s a shortage of qualified candidates from electrical engineers to power plant technicians. Many of these issues result from the competitive market and the fact that young people don’t see the utility industry as a fulfilling and innovative career path.
Digital transformation and sustainability are two of the key drivers of change for the industry’s workforce. Giving digital workers the option to work remotely also could attract some who are unwilling to relocate to tech hubs like San Francisco and Boston
One of the biggest problems is the aging workforce, adapting to new technology, and the lack of skilled workers. With the aging of infrastructure workers and the retirement of some, companies face a loss of necessary knowledge and expertise. Those skills must be passed on to new employees who do not yet possess the skills their predecessors possessed.
Retail
If these jobs can’t be filled, everyone suffers. Consumers will have to wait longer, there will be fewer workers in-store and online to answer questions, delivery will take longer, items will likely sell out and there will be less options to choose from. At the same time, retail companies are on a hiring spree, dangling higher wages and bonuses to attract new talent.
Businesses are striving to find ways to make the job more desirable. Such efforts include improving working conditions, and providing flexible working hours. Their intent is to make job positions attractive and to be the first and most suitable option for workers.
It is currently a chaotic fight for workers. Right now, companies are in recruitment and retention mode, which means job seekers have an advantage in making demands.
Reasons Why
The great resignation is the result of many factors. Recently, a number of events have taken place that have had a significant impact on the workforce. To satisfy employees as well as employers, it is important to pay attention to the most common reasons mentioned.
Career Growth Opportunities
Many employees believe that companies should offer career advancement opportunities. Despite this, most employers do not offer training programs for talent development. When a company doesn’t give its employees opportunity to grow, they can’t expect all their talent to stay. Talent needs to see what their future holds to stay and grow with the business.
Dont take employee loyalty for granted
Most employees expressed satisfaction with how their employers handled the pandemic and supported them, but many also expressed the desire to leave their jobs within a year. In order to ensure that people feel valued as a company, leaders should regularly ask their teams how they can improve as a business, along with suggestions about how they want to see things improved.
Invest in mental health
There is still much to be done to prioritize mental health benefits for employees. A survey showed that many respondents wanted more support for mental health at work. Unfortunately, only few HR departments were making changes that would prioritize mental health. Rather than waiting for employees to come to them, leaders should be asking how to assess mental health. Proactive measures are necessary to better learn about employees’ concerns.
Recruiting and employee growth practices must be revisited due to today’s rapid turnovers. A business that looks internally and finds innovative ways to retain talent will be able to attract, engage and retain their most valuable asset, which is people.
What to realize – Post pandemic changes – 4th industrial revolution
With all the new money coming in because of the pandemic, many people just decided to stay home and not work since they could get more money from extended unemployment and SNAP benefits, as well as stimulus payments, than working.
Then there’s the cash economy — people who are working but not being counted by government statistics because they are paid in cash. People who opt for cash can sometimes earn more than they would at entry level retail jobs, plus they remain eligible for government money, like stimulus checks.
Since the pandemic hasn’t ended, there are still health concerns. It’s still possible that breakouts will happen despite mandates. Some states, however, have decided to remove some of their requirements. There’s no doubt it’s harder for workers who deal with the public every day.
Recent shifts in employer requirements and mandates at some companies have caused an alarming number of workers to leave the pool. There were lots of people who opted not to go to work rather than comply with new regulations.
Employers need to keep these things in mind when it comes to staffing today. For a better working environment and greater employee retention, it is important to target adjustments to meet both the new requirements of the company and the new needs of the employees fairly. In addition to the government stimulus program, the cash economy, and all of the new changes arising from the dawn of the fourth industrial revolution, companies face new unique challenges in retaining their most qualified employees.
