So open up a tab in Google and search for The Great Resignation and you will find hundreds or articles on what is driving it, when it is happening and why the great resignation is happening. Very few of these articles are telling you that its complete bullshit, but we are. You will find that The Great Resignation is a cycle that happens every year.
Let’s start by exploring what others are saying is the who, what, how and when behind The Great Resignation, and debunk each of these myths as we go. By the end of this article you will understand that The Great Resignation is complete crap and hopefully you will have a better understanding on how to improve your retention.
What is the Great Resignation? According to the articles that come up when you enter “what is The Great Resignation” into Google or your favourite search engine, The Great Resignation refers to a higher than normal resignation rate in American workplaces during 2021 and can be seen here in Wikipedia
First off, the Great Resignation really only applies to the USA, NOT the rest of the developed world. Yes there may have been a slight increase in the resignation rate around the world but it should hardly be called The GREAT Resignation, maybe the slight increase in resignations.
Second it doesn’t take into account the effect the Omicron variant of COVID-19 on the workforce, so it was a little premature.
Why did The Great Resignation occur? The Great Resignation is a result of employees going into the COVID-19 era unhappy in their work or workplace – or becoming unhappy during the COVID-19 era due to the way they were treated.
Lets say that again,
The Great Resignation happened because people went into the COVID-19 pandemic unhappy in their work/workplace.
They were already pissed off and if the pandemic didn’t happen they would have resigned their workplaces the same way people/employees have left their workplaces when they are unhappy for hundreds of years. So what happened is they simply delayed their change, purely for selfish reasons.
Think about it, it’s August 2019 and Fred Flintstone hates his new Manager and as a result, is currently on the market. He has been for a few interviews but nothing is jumping out for him so he has decided to stay at Bedrock Quarries until after Christmas. Early 2020 Fred starts applying again and is getting close to securing a couple of roles. On the news one night Fred sees a segment on this new virus that is spreading through the world. Wilma is concerned and they [both Fred & Wilma] decide it’s better to stay where he is for the time being, after all he has been at Bedrock Quarries for a long time. So at least if this new virus starts to impact workplaces Fred should be looked after.
So The Great Resignation if it exists is nothing more that a “bottle neck”. Its not a GREAT anything, its simply people who already decided that they were going to leave, acting on what they wanted to do pre-pandemic now that the market has opened up.
Why has The Great Resignation occurred? Again, if you look at the background, The Great Resignation is purely a bottle neck of people leaving. Yes there was an increase in the US however, where I am located (Australia), that period also coincided with the Christmas period – which by chance is the period of the year which sees the highest level of resignations in a year – EVERY YEAR! Thats right, if you could track the number of job changes across the market you would see that there is a massive jump, every single year around Christmas New Year.
Here is how that works: People want to secure a new job by Christmas so they can start the New Year fresh. If they don’t then one of their New Years Resolutions is to get a new job. So the Jan-March period is where we see and massive increase in CV/Resumé flow in the market. That increase in CV flow means there are vacancies that open up which means there are more people changing jobs. It’s a cycle that happens every year.
How can you avoid being caught up in The Great Resignation? Ok so we have discussed the what The Great Resignation is and its cause. We have discussed that it’s not really a GREAT anything and more to the point it is probably a slight increase based on past years. However you still DO NOT WANT TO LOOSE PEOPLE DURING THIS PERIOD. Why, it’s a tough market out there and if you are forced to hit the market looking for someone, you are going to find it tough.
So here are some tips to help you being caught up in this hype.
- Make sure you are paying people right. Because the candidate market is so tight, you will find that roles are being artificially inflated in the market. What does this mean? If the market rate for a Widget Machine Operator is usually $30 per hour, you may find that could increase to $50 per hour. Now this is very important. The Widget Machine Operator now thinks that they are worth $50 per hour where they aren’t. This is artificial inflation and it means that if you have to go to market to find a Widget Machine Operator, you will be competing at that $50 per hour. This is ridiculous. Do yourself a favour and talk to your Widget Machine Operators and give them a loyalty bonus for staying. This applies to all roles. IT IS MUCH CHEAPER TO GIVE SOMEONE A BONUS THEN COMPETE FOR NEW TALENT IN AN ARTIFICIALLY INFLATED MARKET.
- Time or rewards are often better than cash. Have you ever given someone a dinner a fancy restaurant? Let’s say Fred has been a very loyal employer and you know he and his partner Wilma don’t frequent Granite Restaurant as it is out of their price range. Imagine if you gave Fred a $600 voucher for dinner. What would Fred’s reaction be? It would be amazing wouldn’t it. Sometimes all it takes is a gift, something that you know they would never buy for themselves to re-energize them.
- Talk to your people. This sounds absolutely ridiculous however we know that most people leave a role because they dont feel valued. If you simply sat Fred down and spoke to him about his work (somewhere natural, not in your office), and provide some genuine positive you would see him open up and grow a couple of inches. It doesn’t take much at all.
In closing, take the time to connect with your people. Don’t be afraid to ask them if they are feeling comfortable and secure. At Recruitment School, all of our people are trained in suicide identification & prevention. There is a myth floating around that people say you shouldn’t use the word “suicide” to someone as you may put the idea in their head. That is complete bullshit and all training says do not hesitate to use the word. The same goes with people leaving. Ask them bluntly, but please be nice about it – “Fred, can I ask you something, are you considering leaving Bedrock?” and then shut up! Let them talk and more importantly, watch them. They will tell you what is going on through their body language.
Good luck in keeping your people and if we can help in anyway, please dont hesitate to contact us through our Facebook page which you can access by clicking here
Take care
