The Great Resignation Period
The Great Resignation is an ongoing economic trend that has affected many businesses over the past years and will likely affect more in the future. The recruitment team at GCS Malta discuss this phenomenon in the following article.
What is ‘The Great Resignation’?
The Great Resignation is a pandemic-era phenomenon driven by an economic and psychological shift. The term ‘The Great Resignation’ was coined by organizational psychologist and professor Anthony Klotz of Texas A&M University and describes the wave of people quitting their jobs or swapping careers at the beginning of 2021. The Great Resignation also inspired other terms to describe this work revolution, such as ‘The Great Reimagination’, ‘The Great Reset’ and ‘The Great Realization.’
Originating in the US, the phenomenon is now considered a global trend. Various factors led to a mass of employees resigning from their jobs:
- Wage stagnation
- COVID-19 pandemic
- The rising cost of living
- Long-lasting job dissatisfaction
Many claim that the leading cause was the pandemic since many workers started to re-think their priorities with more employees wanting to work remotely and have more flexible options. In the US, 4 million Americans quit their jobs in June 2021, hitting an all-time record.
Is The Great Resignation here to stay? – The Great Reshuffle
The pandemic ignited this phenomenon to occur, so what happens when the pandemic ends?
Now, employees are not simply swapping their careers, but they switch jobs within the same job market that better aligns with their priorities. According to various studies from Microsoft and Adobe, Gen Z is the most likely to swap jobs within the next year.
Gia Ganesh, Vice President of People and Culture, Florence Healthcare, claims that ‘as a society, if we begin to shape our practices around how we treat people, how our work environments are structured, the Great Reshuffle will end.’
In a survey conducted by Microsoft, the top five aspects that employees view as very important are:
- Positive culture
- A sense of purpose
- Flexible work hours
- Mental health benefits
- More than two weeks of paid vacation a year
Besides these aspects, diversity in the workplace and flexible modalities such as hybrid working are also highly prioritized by workers.
Klotz’s three predictions for work in 2022
- The Great Resignation will slow down
Although Klotz expects the quitting to continue in 2022, the spike should be less than last year’s. The reason behind fewer resignations will most likely be because companies are now offering better benefits and higher salaries.
- Flexible work arrangements are here to stay
The benefit of working from home was the most sought-after benefit during the pandemic. In fact, according to WFH’s Research Project, many people value flexibility as much as a 10% pay rise. According to Klotz, companies that refuse to offer more balanced and flexible work arrangements will be the ‘losers who struggle in the wake of the Great Resignation.’
- Increase in competition for remote jobs
Since remote work allows for a bigger candidate pool, there will likely be an increase in competition for remote jobs. In addition, many companies expect to reduce their workforces with new technology.
Why GCS Malta?
At GCS Malta, our exceptional Recruitment team can guide you with any recruiting matters. Check out our vacancies to find your dream job today and contact us for more information on how we can help you.
Article by Sarah Jane Gauci