The Great Resignation

In conversation with Chantelle Mifsud (Managing Consultant) 

The past few years have introduced a tidal wave of differences among the working society. Aside from the remote work context we see ourselves in today, and the shifting priorities of employees that come with it, more recently an impressive number of resignations are being recorded worldwide. Beginning in the US July 2021 noting 4 million resignations, the working world experienced a new term: The Great Resignation. 

The Great Resignation represents the unusual turnover experienced in various industries worldwide. Employers and organisations are led to envisage strategies and workplace amendments to retain their current talent, to avoid further employee turnover. And it’s not just the US experiencing this trend—Europe, China, and India are also remarking a similar phenomenon. 

But what drives this record-breaking number of resignations globally? The present working theory revolves around novel employee preferences as a result of the Covid-19 pandemic. The way employees interacted with their jobs altered; no more spending time in traffic to get to the office, improved work-life wellness, and a general trend against an intense daily grind of work. The relationship between employees and the workplace, including their jobs and career development, has transformed to support a higher quality of life. 

“I believe we’ll continue to notice this phenomenon long-term as newer job opportunities arise,” Chantelle informed me, when asked about whether she’d heard of the Great Resignation before. She describes the experience as a movement and doesn’t believe it will slow down any time soon. In which case, employers must begin to establish a new approach in employee retention or face high turnover consequences. 

A Shift in Employee Values 

Interestingly, there are differences between cohorts of workers who are taking charge of the Great Resignation. “During the pandemic, the tech industry grew in high demand,” Chantelle began, “Workers in tech weren’t hesitant to leave their current job to pursue something better, due to the increase of job opportunities in this area.” She explained the typical nature of a competitive market, where workers have the upper hand in determining better working conditions with future employers.  

Chantelle’s experience in Malta was felt in the US, too. One report conducted by HBR (2021) found that tech resignations increased by 4.5%, the highest percentage when compared to other sectors. The cause was similar to the above, where workers dropped their jobs with high task loads that lead to burnout. An increase in demand means more possibility in finding a job that’s right for them.  

As the working society moves to explore job opportunities that aligns well with their values, one particular shift has supported improved flexible initiatives—something that was pushed forward with a remote-first workplace agenda. “I think today’s working world finds that remote job opportunities are favourable among employees,” Chantelle stated, “I don’t believe it’s the sole reason as to why employees resign—but I do believe they will leave their current workplace because they don’t have flexibility.” 

When asked about other reasons as to why employees are resigning, Chantelle explained that there are many. “It depends on one’s lifestyle, personality, and current working context,” she expressed, “people are feeling burned out, are experiencing an incredible workload, poor office synergy, lack of career progression...some just want a career change.” Whilst the reasons are vast and can be unpacked individually, we can take note of one thing: the pandemic has led to a shift in the way we understand employee needs, and we’re now experiencing the next wave of conditions employees are willing to take on. 

Improving Employee Retention 

Organisations need to cautiously evaluate novel approaches in improving employee retention. Now that we can identify trends in specific cohorts leaving the workplace, and for what reasons, companies must observe these through a thoughtful lens. Generally, employers and leaders alike should not work on employee turnover solely from a quantifiable standpoint—but also question why employees are leaving and how resignations can be prevented.  

“Companies need to personally oversee their unique workplace conditions. What may work for one company might not work for another,” Chantelle explained, “namely, organisations need to establish a retention program.” A retention program is a customisable approach in providing solutions for particular organisational issues, hence it’s important to firstly identify what these are, and their root causes before devising such a plan. 

“As a company, you need to ask and address specific issues. Is your workforce receiving a low pay compared to other companies? Then you need to compensate your employees accordingly,” Chantelle reiterated, “conduct employee surveys, for example, to receive feedback from your workforce that is data-driven.” Her last note on the matter emphasises an inclusive, open-minded approach in developing such a program: “You need to listen to your employees, have their voices be heard.” The Great Resignation is indeed a movement led by the current workforce in determining a better quality of life, and it’s time we work together in exploring what that looks like in the 21st century.

The Great Resignation Q. & A.

The worldwide movement of heightened resignations has altered the perceptions of many industries in understanding employee needs and values. Some industries such as Talent Acquisition Advisory expose a unique perspective; in aligning employees and determining their fit with a new workplace environment, they must be wary of what the working society is looking for from both a candidate and client perspective.  

 Below features a conversation I had with Marco Lia and Jan Mackiewicz, who form part of Castille’s TAA team on the finance side.  

Have you heard of the Great Resignation before? What are your thoughts on it? 

Marco: Yes, I have. It was a time when workers re-evaluated their life choices and priorities. In the world of employment, it began a new era—marked by Covid-19—transforming employment as we knew it forever. 

Jan: When I first learned about the studies attesting to high resignations, I was surprised. You would think with such job insecurity in 2020, workers would stay in their jobs for longer. Though on second thought, when things began to stabilise, companies were hiring a lot of people again. Many wanted to start afresh and develop new teams—the market homeostasis was suddenly restored.  

What do you think is causing high resignation rates in companies?  

M: There has been a gradual increase in resignations globally since 2010. Reasons for this include employee burnout, poor flexibility, employees who feel undervalued, etcetera. I think the resignations in 2021 were certainly encouraged by the Covid-19 pandemic, which led employees to re-examine their values and their future aspirations. 

J: During the pandemic, employees were left to reflect upon what they need from an employer. Is the company I’m in now going to care for my safety and wellbeing? Am I able to develop professionally in my current role? Do I have a fair salary? If the answers to any of these questions are ‘no’, people will now no longer hesitate to change their position for something better. 

What are the values of jobseekers today, and how can organisations accommodate these?  

M: We are noticing that many resignations arise from employees in Gen Z or are Millennials. I believe jobseekers are paying more attention to their personal lives and are therefore looking for companies who embrace flexi-work arrangements that supports work-life balance. Remote work, hybrid working hours, and flexible hours (that are not necessarily within 9AM to 5PM) are important to jobseekers. 

That being said, not all types of employments are able to arrange the above. Organisations and jobseekers need to be sensible—those companies that can include flexible incentives should be ones that offer work that can be conducted off-site. Nowadays, if organisations want to retain their employees (and attract new ones), they should promote these benefits as part of an employment package and have these written in policy. 

J: I believe that jobseekers are looking for stability, comfort, a clear career path, and a better salary. Organisations need to be transparent on what their goals are, if the company is facing any issues, and how employees can develop professionally.  

Employers should make an effort to be in touch with their employees and ask them what their needs are. Ensure that salaries are fair based on a competitive market, and compensate accordingly if they are not. Businesses must find new ways to diversify themselves from competitors.   

What advice can you offer to clients who are experiencing high resignation rates?  

M: I would advise clients to have a team (such as a HR department) that is dedicated in assessing any situation and approach employees who do resign. Companies need to proactively retain employees and ask them what improvements can be made. This can be done indirectly via anonymous surveys, and depending on the results, necessary changes can be actioned. Overall, organisations should work to make employees feel as though they belong in the company. 

J: Your employees know best. Ask them what they feel is lacking, and ask those who do leave why they made that choice. Be open-minded and actively listen to what they have to say. Use that information to learn what you can do about it as a preventative measure.  

How do you see the jobs market evolving in the near future?  

M: Flexible work will become a dealbreaker when candidates look for new jobs. During the pandemic, organisations realised that remote working could work, and employees can be productive when working from home. This opened various possibilities as employees no longer must commute to work, and can dedicate more time to their personal lives. It can also be a sustainable workplace option.  

Candidates are no longer requesting flexible work—but are now demanding it. They are more interested in companies that do offer a hybrid or remote model of work. Sometimes even at the expense of a better salary. As I mentioned beforehand, not all companies can do this—but those that can, will realise that a work from home option can be more important to candidates than an attractive salary. 

J: I think effective communication will direct our market. To improve awareness around employee needs and better communication between management and workers. A better workplace culture that is respectful towards everyone involved. 

This article was taken from The Castille Quarterly Newsletter | February 2022