The ‘Great Resignation’. Impetus for companies to invest in digital enablement, culture and a workplace where people learn and thrive

By Jim Woods, PwC China Chief Digital Officer and Julia In, Communications

China’s economy grew by 8.1% in 2021 to RMB114 trillion. A strong rebound marking its best growth a decade, a pace faster than the government target of above 6% and at a recovery rate faster than other major economies since the pandemic. Yet, one issue that may dampen China’s economic engine, and where experts say may add pressure to the nation’s income growth, consumption and upward mobility in the long-term is the ‘Great Resignation’. 

In China, this phenomenon among the younger workforce, has seen millions of workers leaving traditional jobs to pursue flexible employment, often turning to the digital shared economy instead of full-time work. Flexible employment, with all its advantages, has changed the employee-employer relationship.

Pandemic-defined digital culture

The Great Resignation has left huge numbers of people in China, and other large countries, to reassess their priorities and purpose. It is a challenging time for employers but also an opportunity to renew relationships with employees. The pandemic has seen people adjust to digitally-driven ways of living, facilitated by cloud technology, E-commerce, remote office software to communication tools that enable a digital workforce. Who isn’t curious of a future workspace in the metaverse as digital avatars?!

The phenomenon has seen a record number of people quit their traditional jobs as they pursue their passions and pave their own professional path. Although underlying causes of the desire to quit vary by country and culture, what is inevitable is a talent war and a skills shortage that has and will continue to cripple industries. Companies’ short-term measures will see a shift in engagement practices, perks and rewards to lure and retain talent, and create more purpose-driven work. But is that enough?

As leaders and organisations look to reshape the workplace by creating a more meaningful and sustainable outcomes for clients, it is important for leaders to start reimagining work in tasks, activities and ultimately upskilling the workforce. This involves creating value-adding work for people to have the skills needed to help businesses stay agile and evolve during turbulent times.

In Employers we trust

The impact of the Great Resignation is far-reaching as people rethink their career choice and loyalty. In a competitive talent environment, leaders should be proactive in rethinking their talent and performance models. With the ongoing pandemic reshaping norms at work and home, it’s important companies change talent management practices as business priorities shift, but also adding value like reskilling and job creation to future-proof the workforce in the post-pandemic era.

We hope the new year is an opportunity for leaders to build a trusted culture and sustained outcomes with employees, this starts with transforming the workplace to where people want to join and develop new skills for the future.