Anthony Klotz from Texas A&M University is credited to have created the term “Great Resignation”. As more data comes from across industries and countries, some question are coming up. Is there really a one-way “great resignation” in progress or just business-as-usual (BAU)?
There is recorded wage adjustment and growth across the US and UK. Some sectors have hiked pay to raise the exit barrier to counter it. Tech firms on the US west-coast have raised salaries by 5% since 2020 . Microsoft says that 46% of its global workforce is planning to make a major pivot or career transition.
There is a lot of buzz from employees on social media. “Anti-work” message board on Reedit has more user comments than “WallStreetBets” that rocked GameStop in 2020. Are employees being more vocal about leaving work for good on social media rather than on the ground?
So is it a global phenomenon? Looks more like a US/UK trend based as per wage trends. Are people leaving the workforce en-mass? Here are 3 trends that explain what could be going on:
Not a one-way ticket: There is limited evidence to suggest that people who are quitting are doing so because they do not want to work. Some people are looking for lower working hours but that has been a trend even before COVID. Employee engagement and job satisfaction is all time high: going against the noise around the notion that more people are desperate for a way out.
Job Boom: Are the multiple vacancies due to boom is certain sectors driving moves? More jobs in the markets make people feel comfortable to put in their papers and be confident to find a new one at a later date. As per a study job quits are at the level you would expect them to be given the number of vacancies.
The ones who held on: Stability through 2020 has built up pent up resignations as many people who would have liked to leave may now decided to make the move.
Taking the above 3 perspectives, the recent pick up on people moves looks a lot less unusual and even less like a one-way “great resignation”.
The “great resignation”, when that happens, will require radical changes in culture. When people would collectively decided that they want to consume, spend, holiday – much less than they have been doing, hence, driving down the need to work in regular jobs.
The global consumption data, supply chain blockages, global travel pick up and Christmas gifts say otherwise!
Please share what trends you see in your line of business and country.
Info credit: The Economist – December 11, 2021: All Mouth and No Trousers
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