The Great Resignation of 2022 may sound like the title of a dystopian novel, but it’s actually a term used to describe a predicted mass exodus of employees from the workforce.
The idea is that, as baby boomers retire and millennials enter their prime working years, there will be a massive shift in the labor market. This could lead to widespread resignations as workers take advantage of their newfound bargaining power to demand better working conditions and higher wages.
So far, the data supports this theory. According to the Bureau of Labor Statistics, the quit rate — which measures the number of workers who voluntarily leave their jobs — has been steadily rising since 2014. And while it’s still below pre-recession levels, great resignation statistics are rapidly approaching an all-time high.
In 2021, the BLS recorded the highest number of resignations in the U.S. to date at over 47 million. This suggests that workers are feeling more confident about their job prospects and are more likely to jump ship if they’re unhappy with their current situation.
Of course, this doesn’t mean that every company will experience The Great Resignation in 2022 and beyond. But it does underscore the importance of retaining your best employees. After all, if even a small percentage of your workforce decides to join The Great Resignation, it could seriously impact your bottom line.
Why Employees Leave
Nearly one in four workers, or 25%, will resign in 2022, says the online assessment provider Questionmark. The reasons behind this mass exodus are numerous, but they can be boiled down to three key factors:
- A desire for greater flexibility
- A need for better pay and benefits
- A lack of trust in leadership
Flexibility has become increasingly important to workers in recent years, especially as more and more people are balancing work with other commitments like childcare or caregiving. According to a survey by The Workforce Institute at Kronos Incorporated, nearly three quarters, or 75% of employees, say they would leave their current job for one that offered greater flexibility.
Similarly, workers seek employers who offer better pay and growth opportunities. According to Forbes, many employees say they left their jobs due to a lack of career development opportunities. Pay also matters, likely due partly to the fact that some wages have been stagnant for years as the cost of living has continued to rise.
Finally, employees are also looking for employers they can trust. In the wake of the pandemic, many have lost faith in their leaders. A survey by Gallup found that only 36% of employees trust their company’s leadership. This lack of trust can be devastating to morale and motivation, and it’s one of the main reasons employees are likely to leave their jobs.
How The Workers’ Exodus Is Affecting Businesses
The Great Resignation is already having a major impact on businesses, particularly in terms of productivity and turnover.
A study by The Economist found that workers planning to leave their jobs are less productive than those who are happy with their current situation. This loss of productivity can significantly impact a company’s bottom line.
The rise in turnover caused by The Great Resignation can be expensive and disruptive for businesses. According to Gallup, the cost of replacing a worker can be as much as 150% of that worker’s salary.
What’s more, it is likely to exacerbate the severe shortage of skilled workers in the U.S. The country is already facing a skills gap, and the mass exodus will only make it worse.
The Great Resignation 2022: How To Avoid It
The Great Resignation is the culmination of a perfect storm of factors, including rising job dissatisfaction, increased stress levels, and a decline in workplace morale. The good news is that businesses can avoid it by taking steps to improve employee satisfaction and retention.
So, what can you do to avoid it and keep your best employees happy? Here are a few strategies:
Offer competitive benefits.
This one is pretty straightforward. If you want to retain your best employees, you need to offer them a benefits package that’s competitive with what they could get elsewhere. This includes not only comprehensive healthcare but also bonuses, stock options, and other benefits.
Create a positive work environment.
Another important factor in employee retention is the work environment. If your workplace is stressful, boring, or otherwise unappealing, workers will be more likely to look for a new job. To create a positive work environment, consider things like company culture, diversity, office design, and employee development opportunities.
Foster a sense of belonging.
A sense of belonging is another key ingredient in employee retention. Workers who feel like they’re part of a team and are valued by their company are more likely to stick around. To foster a sense of belonging and high morale, make sure everyone feels included and valued, offer opportunities for personal and professional growth, and provide regular feedback.
Promote from within.
Finally, one of the best ways to retain your best employees is to promote from within. This sends the message that you’re invested in your workers’ development and that there are opportunities for advancement at your company. Plus, it’s a great way to keep top talent from leaving for greener pastures.
The Great Resignation is a major challenge for businesses, but it’s one that can be overcome with the right strategies. By offering competitive pay and benefits, creating a positive work environment, fostering a sense of belonging, and promoting from within, you can keep your best employees happy and avoid the mass exodus.
BestCompaniesAZ Can Help
At BestCompaniesAZ, we know that The Great Resignation is a major challenge for businesses. That’s why we’ve created a platform to help companies find and retain the best talent in Arizona.
If you’re looking for top employment, browse our job openings to find the perfect fit for you at some of the best employers in the state. And if you’re looking for ways to improve employee retention and make sure your workers stay happy and productive, check out our tips and resources.
The Great Resignation is real, but we can help you overcome it. Contact the team at BestCompaniesAZ today to learn more.
