n recent months, much has been said about the phenomenon "The Great Resignation" and the way in which companies anticipate the growing need to increasingly meet the real - and personal - needs of their employees. But what is this phenomenon all about?
“The Great Resignation” is a term attributed to Anthony Klotz, a professor at the Mays Business School at Texas A&M University. In an article from 2021, Klotz talked about the exodus of workers, arguing that, by the end of the year, millions of professionals would voluntarily leave their jobs. A Microsoft study from March reinforced the same idea, indicating that about 40% of employees would consider leaving their job if they had to return to the traditional (pre-pandemic) work model.
“The Great Resignation” is a term attributed to Anthony Klotz, a professor at the Mays Business School at Texas A&M University. In an article from 2021, Klotz talked about the exodus of workers, arguing that, by the end of the year, millions of professionals would voluntarily leave their jobs. A Microsoft study from March reinforced the same idea, indicating that about 40% of employees would consider leaving their job if they had to return to the traditional (pre-pandemic) work model.
All because, with the increase in the number of vaccinated people and the return to face-to-face work, many employees would not want to go back to work in these (old) conditions, preferring to say goodbye and look for a new job. In another article, this time for Bloomberg, Anthony Klotz even shared some tips on “How to quit your job with grace”.
But back to the Great Resignation: Did Anthony Klotz get it right?
The answer is: it seems like he did! In April 2021 alone, four million people in North America quit their jobs. About three months later, three million more were doing the same.
Here, in Europe, there is less information - actually, there are fewer numbers. However, some studies and analysts reveal that the Great Resignation has already reached the European continent, with Germany leading the number of resignations, followed by the United Kingdom, the Netherlands and France.
The same phenomenon was also observed in China. Although it was called “tang ping” there, it is also associated with a new lifestyle adopted by many young Chinese people, who seem not to be willing to make sacrifices for a career.
But who are these employees after all?
To begin with, it is necessary to understand that, although we are talking about a global trend, the step of actual resignation has been taken by professionals with a very similar profile. We're talking about employees:
- Between 30 and 45 years old;
- Working in the tech sector, the health sector - in this one there seems to be a clear fatigue and weariness due to the pandemic, which makes them want to leave - and in the catering/hotel industry;
- With fewer financial commitments (whether because they have few possessions - for example, a car or house to pay for - or simply because they have opted for a more frugal and less consumerist lifestyle).
Despite the commonalities, there is a clear divergence: the salary issue. On the one hand, we have well-paid professionals who have no problem leaving their job, because they know that, thanks to their skills and experience, they will easily find something new. On the other hand, we have less well-paid employees who, after the pandemic, are looking for a better balance between work and personal life. However, something that seems to unite them in terms of salary is: they all seem to be willing to receive less, if it means living better. Last but not least, it should be mentioned that there is no indication that these professionals do not like their work; the data so far indicates that they like the companies they work for. What really motivates them is the search for a better balance between work life and family life.
In addition to all this, there seems to be another common desire: (to continue to) work remotely. In the case of employees who worked remotely during the pandemic, after seeing that "it is possible” and that the system works, it seems to them to be quite difficult to understand (and accept) the reason why they cannot continue working in this model.
For many, remote work has allowed for a balance between office life and personal surroundings. It also meant to stop wasting hours traveling from home to work and from work to home, and/or expenses associated with transport, meals away from home, and so forth. Also, remote work has allowed and allows employees to change their lives. Many left their busy lives, in small and expensive apartments in the center of the city, to live in bigger and cheaper houses, in more pleasant places and with better quality of life.
For many, remote work has allowed for a balance between office life and personal surroundings. It also meant to stop wasting hours traveling from home to work and from work to home, and/or expenses associated with transport, meals away from home, and so forth. Also, remote work has allowed and allows employees to change their lives. Many left their busy lives, in small and expensive apartments in the center of the city, to live in bigger and cheaper houses, in more pleasant places and with better quality of life.
What can companies do?
Now, this new paradigm represents a huge challenge for companies, especially when it comes to finding strategies to retain talent.
At the same time, it also implies a change of mentality. The paradigm has changed and the “new normal” is more concerned with employees. Therefore - and apart from salary - employees also expect more from companies. And it is not enough to be more flexible (either in what comes to schedules or in terms of the possibility of working remotely, for example). It is also important that companies strive to get to know each employee well, understanding the reality of each one, defining personal strategies with purpose and promoting their authenticity. Obviously, productivity is important - but respecting the essence of each employee, taking advantage of each one's talent, is and will be essential.
Of course, this situation places a greater burden on Human Resources departments which, along, can't move mountains. According to Marlene de Sousa, founder and director of Attittude, a recruitment and human resources agency, “companies have to see training as an investment and not a cost. The development of employees is important to motivate them and to guarantee the knowledge that will make them perform their work with quality and efficiency”. This means that, in the future, we will likely see more and more managers and employees sitting at the same table, defining rules and strategies.
If companies want their employees in the office, they will have to offer more. In other words, they have to give employees a reason that really makes them want to come back. This can include offering better benefícios, promoting a good working environment, investing in more creative and attractive spaces and, of course, "demonstrating that they know how to recognise employees who perform their duties exceptionally is the secret of any company’s success", assures Marlene de Sousa.
If companies want their employees in the office, they will have to offer more. In other words, they have to give employees a reason that really makes them want to come back. This can include offering better benefícios, promoting a good working environment, investing in more creative and attractive spaces and, of course, "demonstrating that they know how to recognise employees who perform their duties exceptionally is the secret of any company’s success", assures Marlene de Sousa.
The reasons for the phenomenon “The Great Resignation” and the challenges of attracting and retaining talent in the age of flexibility will be addressed and discussed in the next “ReFLEXions by Coverflex”, scheduled for February 15, 2022, at 3 pm. Registration is free but seats are reserved! Sign up aqui.
