Maybe you are familiar with the term “ the great resignation”. Or maybe it’s the first time you hear it…Either way, this article will aim to explain the great resignation. As well as how appreciation plays a huge role in creating a talented workforce
The pandemic has given rise to very turbulent times and unforeseen trends. The rise of the COVID pandemic led to stress, anxiety, uncertainty, and fear of losing jobs. The after-effects of this stressful period, have reinforced the importance of strong company culture and appreciation.
Moreover, the change in work dynamics towards a hybrid approach, is fundamentally different in management style. As such, leadership and management need to adapt to retain talent.
The thought of losing a job is scary, especially in a pandemic…However, the pandemic has shown an increasing trend of employees resigning and switching jobs by the masses. The importance of personal health, time, and recognition overruled the fear of finding a job in the middle of the pandemic. Many employees searched for something better, and their employers were their main reason.
In fact, a study by Microsoft showed that over 40% of the global workforce is considering changing their job this year. That’s a significant amount. Moreover, that includes the loss of talent, dilution of culture, and the lack of human capital some organizations might encounter.
Reasons for the great resignation.
It is no secret the pandemic has given time for reflection. With the world being shut down, individuals around the globe have taken the time to understand their values and priorities.
Simply put, workers experienced a shift in priorities during the pandemic. As a result, employees have been motivated to transition towards their personal goals and objectives, and take the opportunity to reset their life in a direction that aligns with their goals.
On the other hand, employees left their jobs due to their treatment and management during the pandemic. This comes in the form of lowering benefits, layoffs for a large amount of the workforce, and blatant disregard for the mental health and capabilities of their workforce in times of stressful times. As a result, employees felt unappreciated and undervalued. Naturally, both these feelings have a toll on work motivation and mental health.
Think about it this way… If you’re working 40 hours a week, spending your time at a job that doesn’t appreciate your efforts nor count towards career development goals, why would you stay? What would motivate you to work for a company that does not appreciate your worth or aspirations? Contrarily, a company that supports its employee’s career paths and efforts will see a motivated workforce with lower turnover.
Another reason is salary. Naturally, you want to compensate your employees for what they are worth. However, salary is not enough. An article by the bbc has shown a trend of hospitality workers leaving their jobs to other entry-level positions. The difference between the two? The latter offers more benefits, career development paths, and healthier working environments and culture.
The cost of employee turnover.
It is no secret that the cost of employee turnover is always at an expense. Moreover, you need to add the loss of productivity as well as the time to recruit and onboard new employees. Additionally, taking into account that it may take up to nine months for a new employee to be fully onboarded.
All in all, it’s not only better to attract people to work for a company that appreciates and recognizes their employees, but it’s also better for retention and production.
What’s the solution? Appreciation.
A study by Microsoft shed light that 37% of the global believe that their companies are asking too much of them during the pandemics. As such, managers need to become aware of the tone, and example they set. Moreover, managers need to become leaders that show strong appreciation and value to their team.
The solution comes with listening to employees’ needs, fears, and objectives. By doing so, you give space for open and honest communication before bigger issues arise that lead to resignation.
Additionally, appreciation empowers employees to feel self-purpose and value in the work they are dedicating 40 hours a week into.
The benefits of appreciation include engaged employees, motivated workforces, and an increase of 21% in productivity ( Gallup, 2021) .
If you are interested in reading about the importance of positive psychology and appreciation in your workforce click here.
In conclusion, the great resignation is a process that is inevitable and that should spark up management changes and leadership performance. The result will end in happier employees pursuing their career objectives, as well as a healthier and more profitable workplace.