Introduction
The great resignation relates to the more significant number of individuals willingly leaving their positions since late 2020. Still, resignation data suggest that this tendency started more than a century before. The COVID-19 pandemic caused the American labor market to experience almost employment turbulence. Early on in the pandemic, widespread job losses gave way to tight labor markets in 2021, which were partly fueled by the phenomenon that has come to be known as the Great Resignation. Employees who will be leaving their jobs in 2021 cite low pay (63%), a lack of possibilities for growth (63%), and being treated disrespectfully at work (57%) (Parker & Horowitz, 2022). Therefore, great resignation is a continuing phenomenon of employees who participate in taking employment leaves.
Causes
The Great Resignation evolved as a result of the pandemic. Employees anticipate that as the world changes, so will their working environments. In the contemporary climate, businesses must execute on delivering more independence. Work-from-home policies and flexible work hours are more important than ever. One of the main drivers behind the numerous resignations is employees’ desire to enhance their job satisfaction, which heavily depends on workplace flexibility (Davidescu et al., 2020). Sundry employees leave their jobs because they lack a genuine human connection. Workers want to be valued and understand that their job involves interpersonal contacts and opportunities for career progression rather than merely working for a company. Businesses that build more meaningful communities and networks can improve team member happiness and boost retention. Hence, a network of alums is a fantastic approach to accomplish this.
The Great Resignation is the most critical event compared to earlier historical patterns. In actuality, the monthly quit rate for 2021 is an increase of 115% over the monthly quit rate for 2011. Overall, when it comes to leaving a job, the last few years have been highly historic. While some of the lowest rates ever were seen in 2009, some of the highest rates ever were seen in 2021. The Great Resignation is anticipated to take up most of 2022. The Great Resignation reached its height in 2021, but analysts believe that comparable tendencies will likely continue into most of 2022, albeit less severely. However, the labor market is projected to recover by the third quarter of 2022. The Great Resignation has influenced both businesses and employees. First and foremost, among individuals with lesser earnings, approximately 24% resigned from their employment (Sull & Zweig, 2022). Most of these workers successfully found positions that paid higher, offered better chances, and provided benefits.
Impacts
The Great Resignation may affect a company by rearranging its departments and positions from the resignation angle. It may create new positions and possibilities, emphasize training and skill development, and provide new initiatives to retain employees and increase their sense of fulfillment at work. Concentrating on employment retention and raising workplace satisfaction is crucial based on whether a company is suffering the Great Resignation (Amushila & Bussin, 2021). The only way to reduce the danger and the effects of the Great Resignation on a company is to do meditation. It is unsettling to think that The Great Resignation could impact any company in any industry.
A common reason why workers quit their jobs is that they do not feel like they are getting good benefits. In addition to other considerations like job perks and policies about working from home, employees want to know that their position aligns with their values and professional goals. Employees do not just want to be employed by a company. Instead, they want to use their employment to advance their personal and professional lives. A corporation must therefore consider imparting this value to its personnel to gain organizational culture. The “climate” of the enterprise, as experienced by employees, executives, buyers, and other stakeholders is how the corporate structure should be understood (Mathis et al., 2017). Service and quality of products, overall organizational performance, and financial outcomes are all impacted by this culture. One approach to achieve this would be to provide more excellent career development options, including mentorship programs. A business could provide its employees with added value by creating a thriving professional network and community.
The Great Resignation affects employers because there are countless open positions, and firms must compete fiercely. Countless well-known companies, including Taco Bell, Walmart, and others, are paying their staff much more than they once did to keep current employees and attract new ones. Although nothing about this is inevitable, 2021 marked the pinnacle, and things will gradually return to normal. An example of the correlation between great resignation and team member benefits packages is when a team member is compensated with a gratuity for services rendered to a company (Michael et al., 2022). Once they have served for five years, the employees can earn this perk. Only when a team member leaves their position, retires, or gets laid off will they receive this reward. There is no required minimum eligibility time in the event of the death or permanent disability of the team member.
A professionally prepared resignation letter might make it possible for a firm to part ways with its former company while still maintaining goodwill. Networking does not merely take place at official networking gatherings. Keeping in touch with former coworkers will help an institution develop a strong network that will advance a profession for numerous years. Even the finest of us can lose our jobs. There can be personality conflicts. Other times, the position could be challenging, or firms might need to be a better fit for the position, the firm, or both. Organizations should refrain from trying to personalize worker resignation since they are not a failure because of it. Instead, it indicates that the companies were not intended to perform this task. Several eminently successful persons have experienced career-ending terminations.
Statutory perks, sometimes known as direct financing, are advantages businesses are required by law to provide to their employees. Three non-legally required benefits outlined in chapter 12 include paid yearly, parental, and paid sick leave (Mathis et al., 2017). Paid vacation can be a tempting inducement in addition to paid holidays and annual leave. Foreign employers can retain high-performing workers with the support of some additional paid time off. Similar to providing more paid time off, improving parental leave policies will be met with fidelity and dedication. Strong familial ties and a close-knit extended family are hallmarks of culture. As a result, employees place a high value on additional provisions that help with parental care.
A period of paid time off (PTO), known as annual leave, is one that employers give to their staff. Employees are free to spend their yearly leave in any way they choose, whether on vacation or simply unwinding at home. An employment contract will typically specify when leave is permitted. Parental leave is a perk offered to employees that allows them to take time off work while still maintaining employment to care for a newborn or acquired child. Both mothers and fathers can access it (Mathis et al., 2017). When a team member cannot work due to illness, they are entitled to sick leave under the law. Workers can use a minimum of 0.5 to 7 working days for medical leave, and staff members can use a maximum of 14 days with 50% pay. Giving employees these benefits enable them to work efficiently toward the firm’s objectives, ensuring they are met and giving the business a competitive edge.
Conclusion
Managing the costs of team member benefits includes making workers feel rewarded and appreciated by their bosses. The business incurs a potential burden when accrued leaves are redeemed. A company’s statement of profits and losses is immediately impacted if a team member must be paid their leave encashment upon separation. Organizations should ensure workers request their leave earlier to ensure they do not destroy the normal functioning of a company. The organization I am employed in offers team members sick leave only, which is enhanced upon the approval of a team member’s sickness. Sick leave pay is a perk that enables workers to take time off for immediate or long-term medical requirements and get paid for it. According to the company’s policies and state regulations, employees may utilize sick pay to take care of themselves or a member of their immediate family. Paid sick leave differs from unpaid sick leave in that the former offers remuneration during the team member’s absence, whereas the latter does not. Employees can earn hourly, weekly, or monthly depending on their agreement with an organization.
References
Amushila, J., & Bussin, M. H. (2021). The effect of talent management practices on team member retention at the Namibia University of Science and Technology: Administration middle-level staff. SA Journal of Human Resource Management, 19, 11. Web.
Davidescu, A. A., Apostu, S. A., Paul, A., & Casuneanu, I. (2020). Work flexibility, job satisfaction, and job performance among Romanian employees—Implications for sustainable human resource management. Sustainability, 12(15), 6086. Web.
Mathis, R. L., Jackson, J. H., Valentine, S. R., & Meglich, P. A. (2017). Human Resource Management 16th ed, Cengage Learning.
Michael, N., Michael, I., & Fotiadis, A. K. (2022). The role of human resources practices and branding in the hotel industry in Dubai. Journal of Human Resources in Hospitality & Tourism, 1-25. Web.
Parker, K., & Horowitz, J.M., (2022). Majority of workers who quit a job in 2021 cite low pay, no opportunities for advancement, feeling disrespected. Pew Research. Web.
Sull, D., Sull, C., & Zweig, B. (2022). Toxic culture is driving the great resignation. MIT Sloan Management Review, 63(2), 1-9. Web.