In a post on the IRMI website (https://www.irmi.com/articles/expert-commentary/how-should-employers-resond-to-the-great-resignation) Mike Poskey has some worthwhile comments on the "great resignation".
Contrary to most impressions, the "great resignation" started in 2019 and was accelerated by the COVID pandemic. In 2019 more U. S. workers quit their jobs than any year since 2000. Here are Poskey's top reasons:
- Supply and demand - between 2019 and 2021 the number of job openings increased far beyond the number of unemployed workers. The job market became a seller's market.
- Compensation - in an Indeed survey 48% of workers quit for higher pay.
- Work culture - 92% of workers in the Indeed survey cited bad workplace culture or poor management.
- Lack of work-life balance, remote work options and flexible hours were cited by 40%, 45% and 34% of workers in the Indeed survey.
Poskey lists strategies for employers to retain employees and attract new workers:
- Increase compensation to current market rates.
- If businesses cannot afford raises, be honest with employees and ask for their help in finding solutions.
- Consider long term incentives such as vesting in stock or 401k plans, and equity in the firm.
- Provide leadership development training to managers to improve communication and motivation.
- Have a strong workplace culture focused on building relationships.
- Provide flexible work hours and remote work options.