by Elmo Alforque, Consultant at Management Strategies and Workplace Engagement Coach
February 17, 2022
In 2021, three words shaped the world of work: The Great Resignation. Anthony Klotz, an organizational psychologist and professor at Texas A&M University, first coined the term that describes the wave of people quitting their jobs due to the ongoing coronavirus pandemic. This has led many to rethink where, how, and why we work.
The Great Resignation
This phenomenon describes the trend that more people are leaving the workplace and not returning to the corporate workforce. While this is particularly noticeable in the US and EU, other economies are also experiencing it to some extent.
In a study sponsored by Microsoft, over 40 percent of the global workforce considered leaving their employer in 2021. As the year went on, more workers have quit, in unprecedented numbers.There are several possible reasons that may explain this:
The increased income support during the COVID-19 outbreak may have encouraged some workers to drop out of the workforce and stop looking for jobs.
The older workers, who are more vulnerable to the coronavirus disease, may have opted out of work during the pandemic and experienced difficulty in finding employment again.
The closure of schools and childcare centers has forced some parents (especially mothers) to stay home to look after their kids.
There is a mismatch between the available jobs and the people looking for employment.
The Great Reshuffle
However, this job market trend has morphed into something more nuanced. After a period of unprecedented uncertainty and disruption, millions of workers are leaving their jobs to find new roles with a better work-life balance and a workplace that is more aligned with their values. They seek more fulfillment with greater flexibility in their jobs. This new shift is known as the Great Reshuffle.The ability to work remotely is highly valued among employees since many of them want to retain the flexibility post-pandemic. High job vacancies mean that pay, benefits, and flexibility are differentiating factors for employers.It is becoming more apparent that instead of resigning from work altogether, many employees are leaving to search for something more fulfilling and better suited to their values and life choices.This fact is supported by Gallup’s recent study that shows that people quitting work is not an industry, role, or pay issue. It’s a workplace issue. — the highest resignation rate is among not engaged and actively disengaged workers.A study by the MITSlone research also states that toxic corporate culture is causing people to quit jobs.Leading factors that contribute to toxic cultures include feeling disrespected, unethical behavior, and failure to promote diversity, equity, and inclusion.
The Great Relearning Revolution
This trend of quitting the workplace has led to a talent crisis, fuelling debate on whether this is caused by the Great Resignation or the Great Reshuffle. Another perspective is that we are at the tipping point of the Great Relearning Revolution. Consider the following data:
According to a BCG survey, 68% of workers worldwide are willing to retrain and learn new skills.
Nearly two-thirds of people over 45 are prepared to spend a significant amount of time learning new skills.
A Gallup-Amazon study revealed that 48% of workers in the US are willing to switch to a new job if they are offered skills training opportunities.
65% of workers believe employer-provided upskilling is essential when evaluating a potential new job.
Enrollment on popular MOOC (massive open online course) platforms has skyrocketed.
There seems to be a redefining of literacy that is akin to Alvin Toffler’s prophecy, “The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn and relearn.”
What can we expect in 2022?
Although many expect the Great Resignation or Great Reshuffle will slow down as we consider a post-pandemic workplace, the following trends will remain.
Flexible work arrangements will be the norm, not the exception. According to new research from the WFH Research project, people value flexibility as much as a 10% pay raise. Organizations must accept this fact and work to include this into their operations. Adapting to this new hybrid model will require a rethinking of long-held assumptions.
Digital transformation and new technology adoption will accelerate. In 2020, the World Economic Forum surveyed about 300 global companies and found that 43% of businesses expect to reduce their workforces with new technology.
Remote jobs will become more competitive. Remote organizations can easily recruit workers globally who can do the same job for a cheaper rate.
Online learning, upskilling, and reskilling are going to be significant trends. Korn Ferry’s Future of Work Trends 2022 uncovered a four-fold increase in the number of people looking for online learning opportunities due to its convenience and affordability. It also showed a 5x increase in employer provision of online learning.
The tight labor market trends will continue into 2022. The increased competition for workers has made it exceptionally difficult to hire and retain employees.
How can organizations manage these workplace challenges?
The pandemic changed the way people work and how they view work. Many reflect on what a quality job is and nearly half are willing to quit their current jobs to find one. Organizations must re-examine their corporate culture to promote a healthy environment.Here are some key takeaways that organizations should consider to overcome these present issues effectively:
Focus on building your company culture. The best ways to increase retention have to do with company culture. Continuous feedback, employee recognition, celebrating individual and team accomplishments, and building a more human workplace all have measurable bottom-line benefits because they strengthen employees’ emotional ties to each other and the organization.
Connection will drive workplace culture. ADP Research Institute found that employees who feel strongly connected to their employer are 75 times more likely to be engaged than those who do not feel connected. With connection being another driver of employee engagement, companies will need to focus on people-centered programs. According to a Gartner survey, those initiatives include diversity, equity, and inclusion strategies These now rank in HR leaders’ top priorities for 2022.
Managers will play a key role. The manager will play a key role in building and driving a healthy organizational culture. Reversing the tide of attrition in an organization requires managers who care, engage, and provide workers a sense of purpose, inspiration, and motivation to perform. Such managers will give people more reason to stay.
Employee development will become a priority. More and more teams have taken on new or changing roles in the last 12 to 18 months. As a result, many workers want to broaden their skillsets. Without opportunities for advancement, employees can feel stagnant and unchallenged. By facilitating professional development, employers ensure their teams remain at the forefront of industry trends and best practices and are actively engaged.
Technology will play a pivotal role in workplace culture. When technology is well-integrated in a company’s culture, there is a 5x higher likelihood of employee engagement and a 47% lower chance of attrition, according to O.C. Tanner’s 2021 Global Culture Report. With employees more dispersed than ever before, the role of technology in workplace culture can’t be overstated. Applications must be personalized, integrated, and easy to use. 77% of employees believe that advanced technology will improve their work experience, even in organizations that have eliminated jobs. This is because they know that it will establish a greater connection with the organization and one another.