The Great Resignation & What It Means For 2022
If you’ve been online for more than ten minutes in the past year you’ve likely seen “The Great Resignation” referenced in blogs, videos, podcasts, and even print media. But why’s it getting so much coverage and what does it actually mean? Not only that, if 2021 was the year of the Great Resignation – what will 2022 bring?
In short, The Great Resignation is the term that was coined to describe the historical quit rate happening within the job market as a result of the Covid-19 pandemic. All of a sudden employers were faced with having to shift to provide for remote workers, shut down in-person offices, and find ways to maintain employee engagement, and as a result, millions of jobs still remain unfilled.
The Great Resignation Now
Fast forward to the present day and many companies are now in the position of having to decide whether or not to remain remote or start asking employees to return back to the office. But how, in this unprecedented time, where there is no rulebook for “How To Keep People Employed During a Pandemic” can employers pivot and adapt to keep up with the demands of the IT, Tech, Digital Marketing, and Creative talent they need to keep the lights on?
But before you hit the panic button, there is good news. While resignations are at an all-time high, it doesn’t necessarily have to mean doom and gloom for employers. With so much changing, there are endless opportunities to refresh and reshuffle your staff and make the internal organizational changes that have been a long time coming anyway.
Before we can talk solutions though, we have to understand what we’re working with first…
How many are quitting?
Per the US Bureau of Labor Statistics, 4 million American workers left their positions in July 2021 and resignation rates have remained steady since, with a record-breaking 11 million available jobs at the end of October. Now unless you’re a geek for labor statistics, these numbers probably don’t mean much to you. But when compared to the 6.63 million available jobs in October of 2020, a very clear picture begins to emerge.
Who is quitting?
While we may hear a lot about the labor shortage for service industry jobs like food service, according to the Harvard Business Review, there are some key trends beginning to surface when it comes to the demographics of those quitting their jobs and driving the need for workers in specific industries. Namely millennial, mid-career employees in the tech and healthcare industries. We’ll spare you all the percentage breakdowns but suffice it to say, there’s never been a time in history where the need for IT, Tech, Digital Marketing, and Creative talent has been so great.
Why are they quitting?
It should come as no surprise that the ability to work remotely from the comfort of home without long commutes, expensive lunches out, and added child care costs have forever changed the collective labor market’s mindset. Now that more and more studies are coming out saying that working from home actually leads to better productivity, employers can no longer claim risk to the bottom line if workers aren’t in the office.
What can employers do?
So what does all of this mean for employers? How can they keep up with a workforce that’s not content to sit in an office and who want to feel like they’re working for more than just a paycheck? While focusing on employee retention is a great place to start to combat resignation rates, there are other things you can do short term to attract the key employees and top-tier talent you need now.
Be more realistic
Since it’s been well established over the past 2 years that business performance doesn’t suffer having people work from home, the average American worker is going to want a remote work option. That, combined with the fact that history shows labor shortages favor workers and give them leverage in the job market, is just further proof that employers need to adapt. Real-talk: It may be hard to accept but it’s time to let go of the notion of having a completely in-person workforce ever again and embrace moving into the new digital world.
Be more competitive
While the Covid-19 pandemic was the biggest challenge we’ve had to endure as a nation in a generation, it also opened the door for millions of people to have “pandemic epiphanies” to reassess their priorities and what they want from their work and life. And their assessment? Better emphasis on mental health, a defined career path with room for upward mobility, higher salaries, and more overall healthy employee experiences. Tools like this Salary Guide can help guide you in keeping up with industry trends, shifts that happened during the pandemic, and the annual salary you should expect to pay the top-tier candidates you’re looking to hire in IT, Tech, Digital Marketing, and Creative roles.
Ask for help
More and more employers are turning to staffing agencies to help them fill positions and for good reason. National staffing agencies like Mondo work with a pool of thousands of the most experienced and desirable candidates that can be hard to find as a hiring manager learning how to navigate the changing tides of the job market.
“But how did we attract so much great talent?” we hear you asking…
It’s simple. Mondo is committed to matching employers with the right people by staying on the cutting edge of hiring trends, using our proprietary process to place candidates in record time (3-5 days for contract positions and 5-8 days for full-time positions), AND by working closely with employers to help them ease their transition into the new world to make offers that attract the best talent.
While we will put you to work, we promise our experts will work harder to save you time and to deliver the right candidates the first time around.
The moral of the story?
The current job market gives employees the opportunity and leverage they need to be patient and wait for the right job and while certain experts predict that the pandemic trend will level out eventually and The Great Resignation will be over by 2023, the American workforce and industry employment standards will never be the same. Not to mention, some studies estimate that about 25% of workers plan to quit their jobs once the pandemic is no longer a threat.
So our advice for employers? Get with the times and work with experts to make the changes necessary to not get left behind. Now is the moment to embrace these exciting times and show what you can really do as an organization and how agile, adaptable and attractive you can be to candidates as they decide where to go next.