The Real Reasons Behind the Great Resignation
The Great Resignation, explained. Why the pandemic lowered our fear of change, and what that means for recruiting and employee retention today.
Contents
- Great Resignation: the real reason more and more people simply quit their jobs
- Contents
- TL;DR
- Great Resignation: What is it?
- Great Resignation: A short-term trend or a lasting phenomenon?
- An unconscious effect of the crisis: Corona took away our fear of change
- Dissatisfaction with the manager: the most common reason for a job change
- Conclusion: New habits lead to new opportunities for HR work
- Discover the career page
Die Great Resignation ist kein kurzfristiger Trend, sondern ein dauerhaftes Phänomen. Jeder fünfte Angestellte plant laut PwC-Studie einen Jobwechsel in den nächsten 12 Monaten. Der wahre Grund: Die Corona-Pandemie hat die Angst vor Veränderung reduziert und neue Gewohnheiten geschaffen. Für Personaler:innen bedeutet das Chancen im Recruiting, in der Mitarbeiterbindung und bei der Weiterentwicklung der Unternehmenskultur.
Great Resignation: the real reason more and more people simply quit their jobs
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Contents
- Great Resignation: What is it?
- A short-term trend or a lasting phenomenon?
- An unconscious effect of the crisis: Corona took away our fear of change
- Dissatisfaction with the manager: the most common reason for a job change
- Conclusion: New habits lead to new opportunities for HR work
- Frequently asked questions
TL;DR
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The Great Resignation describes the ongoing wave of quitting in which, according to a PwC study, one in five employees wants to change jobs within twelve months. The real reason is not pay, but the lower fear of change brought on by Corona. It is therefore not a short-term trend, but a lasting phenomenon. For HR professionals, this means new opportunities in recruiting, in employee retention, and in developing company culture.
Author: Dominik Becker · Published: 10 October 2022
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One in five employees plans to change jobs in the next 12 months. That is the finding of a study by PwC, which looked at the fears and hopes of more than 52,000 respondents from 44 countries when it comes to their work. The survey arrives at a conclusion similar to that of economist Anthony Klotz, who predicted the era of the "Great Resignation" back in 2021. What that means, and what opportunities it opens up for you as an HR professional, is what this article is about.
Great Resignation: What is it?
The so-called "Great Resignation" is also known as "The Big Quit" or "The Great Reshuffle". It describes the large wave of resignations that, according to researchers and economists, lies ahead or is already visible in the labor market.
A 2022 study by PwC examines this phenomenon and shows, among other things, the following results:
- One fifth of respondents said they want to move to a new employer in the next 12 months.
- More than a third plan to ask for a raise, but consider meaningful work just as important.
- While a pay raise is a main motive for a job change (71%), the desire for meaningful work (69%) and the wish to truly be yourself at work (66%) are the three most important factors. For almost half (47%), being able to choose their own place of work also matters.
Great Resignation: A short-term trend or a lasting phenomenon?
The past few years have left their mark on the labor market too. The Great Resignation, however, is not a short-lived trend that will disappear when the crisis ends, but a lasting phenomenon.
The causes behind the Great Resignation are not the employee wishes that the study brings to light. I see the real reason instead in the period that we can hopefully soon leave behind us.
Because would the phenomenon have appeared in the same way a few years ago? Hardly. And that is not because employees used to be more satisfied with their jobs, but because of the unconscious lessons of the Corona pandemic.
An unconscious effect of the crisis: Corona took away our fear of change
The past few years were often exhausting and sobering, but still: instructive. Corona often threw us in at the deep end. Suddenly we found ourselves in an unfamiliar, uncertain time. But here is the key point. Even then, ways and solutions were found to deal with the changed situation.
These ways may not always have been comfortable, yet they gradually got us used to dealing with obstacles and challenges. The fear of change and of the unknown was reduced. Because people are creatures of habit, whose biggest hurdle in dealing with change is habit itself. And so change itself can become a habit. Even when that means the urge for something new, like a new job.
Dissatisfaction with the manager: the most common reason for a job change
But why do employees actually start looking for a new job? Certainly not just to get a breath of fresh air into their working day.
The statement "Employees don't leave bad jobs, they leave bad leaders" captures an essential reason that is often behind a job change. Employees no longer want to accept a role in which they work under a "bad" manager.
Because how leaders behave matters for a good working atmosphere and for company culture. One factor that must not be underestimated here is appreciation. Alongside criteria such as fair pay, a well-equipped workplace, and attractive development opportunities, employees also expect non-financial recognition for their work. A leadership style shaped by appreciation is therefore a must-have for a work environment in which employees feel comfortable and want to stay.
!Employee satisfaction and leadership culture
Conclusion: New habits lead to new opportunities for HR work
While a few years ago the power of habit (or rather the fear of the unknown) led employees to stay for many years in their supposedly safe job or under bad managers, we are now in a new era. A large wave of resignations may sound alarming to you as an HR professional at first. At the same time, though, the Great Resignation opens up possibilities that should not be left unused.
1. Recruiting: Talent is more open to a job change
Talent is more open to trying something new, and therefore more willing to move to new roles. That opens doors for companies that stand out in the competition for talent as attractive employers, or that try new approaches in recruiting such as active sourcing.
2. Employee retention: The needs of employees have to be heard
The Great Resignation should not give the impression that high employee turnover is the "new normal" in the labor market. Rather, the insight from it can also serve the retention and development of current employees. To avoid potential resignations, HR professionals should start the conversation with employees early, identify dissatisfaction, and counter it with suitable measures. Surveys on the mood in the workforce and one-on-one check-ins may therefore happen more often than planned so far.
3. Company culture: The ideal time for action
Leadership, and HR decision-makers in particular, should by no means shy away from investing in recruiting and in measures to improve company culture right now. On the contrary, now is the ideal time to act and to make the shift from the "old" HR world to the people-focused People and Culture perspective.
Discover the career page
