Business publications and workforce commentators have recently embraced the term “Great Resignation” to describe the phenomenon of workers fleeing the labor force and the corresponding challenges faced by employers. While this may be a catchy label, it also represents a very real challenge for companies around the world struggling to maintain basic operations, let alone thrive and outperform competitors, in the face of widespread employee turnover and a lack of qualified candidates.
Resignation Risks Growing
New data from Limeade sheds some light on just how dire the situation is. The immersive wellbeing company recently surveyed 1000 full-time U.S. employees at companies with 500 or more employees across industries to gather insight on the aftermath of the “Great Resignation.” The report explores why job-changers left their positions, how they’re feeling in new positions and what could have prevented these job moves.
- 28% of employees left their jobs without another job lined up; they were nearly 2x more likely to cite burnout as their reason for resigning.
- The top reasons for employee departure include burnout (40%), organizational changes at the company (34%) as well as lack of flexibility, instances of discrimination, and contributions and ideas not being valued (all tied at 20%).
- Job-changers were attracted to their new position due to the ability to work remotely (40%), better compensation (37%), and better management (31%).
- 29% of job changers — the largest single category of respondents — received a 10-19% salary increase.
- 13% took a pay cut for their new position and 23% indicated they are paid the same amount, indicating better compensation isn’t an absolute requirement for job changers.
So, what can employers do with this information?
Next Steps for Employers
At a minimum, employers should look to data like that compiled by Limeade to help them better understand the driving forces behind the global labor shortage.
While the Great Resignation is a problem for employers generally, those that understand the root causes and take actions to address those causes within their own organizations may be able to avoid the worst impacts of this phenomenon for their own companies.