The Great Resignation: Market Impact
The Great Resignation caught so many employers on their heels because it contradicted everything traditional management thought they knew about labor markets. So, how is The Great Resignation really affecting the market? Here is part two of three (2/3) of The Great Resignation blog series!
Initial impacts
The market is currently being bombarded right now with people seeking something better. People who have had enough of organizations that do not treat their employees with enough respect. COVID-19 plays a huge factor in this time of uncertainty. Many people are expecting to be able to work from home because of the pandemic. The work from home transition allowed for people to realize how much new flexibilities can assist their overall work ethic and mental health. With over 100 million jobs available worldwide, employers are being forced to increase salaries and flexibility to incentivize people to apply for their jobs. This shift in employment is causing a huge disruption in the labor force
Disruption in The Labor Force
There’s no doubt The Great Resignation has caused a ruckus in the labor force. Millions are standing up and walking out of their jobs, leaving vital positions in companies to be vacant. This leads to companies potentially hiring unqualified candidates who are grossly overpaid because nobody else will work, unless it is on their own terms. Flexibility is the employees’ primary reason to look for a new job, surpassing the needs of higher pay and job security. This trend was the same for the lowest paid workers, not just those who are already making more than the average salary. 52% of people making $30,000 or less still put flexibility as their top reason to look for a new job. The long-term effect this may have on the economy is unknown. Many experts say that the worker shortage is a short-term issue, but the resignation trend could result in good news for the economy long-term. If more people are inspired to pursue new, possibly exciting interests, then job satisfaction goes up. But, for now, the worker shortage, higher salaries, and demand for more employee flexibility is leaving employers on the brink of exhaustion.
How can we go “back to normal” after this Great Resignation? What can be done by employers and employees alike to find a common ground between themselves? Read more about the solutions in part three (3/3) of the Great Resignation in our blog next week!
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