The Great Resignation…or The Great Opportunity?
According to the latest data, the resignation rate among UK workers has reached its highest point since 2009.
What employers have dubbed “The Great Resignation” and “The Big Quit” appears to be in full swing. Perhaps it’s time to change the way business owners and managers think about all those employees who are quitting.
Instead of being a negative thing, this phenomenon could actually represent a fantastic opportunity for leaders to attract — and, more importantly, retain — new talent. Read on to learn more about how you can reframe this situation and set your company up for long-term success.
What Is the Great Resignation?
The Great Resignation is a recent economic trend. Put simply, employees are voluntarily resigning from their jobs in droves — and have been since early in 2021.
The Great Resignation is affecting businesses all over the world. All kinds of businesses have been impacted, regardless of size and type.
How Has It Impacted Businesses?
The UK is no exception to The Great Resignation. In fact, it has had some particularly noteworthy impacts in this part of the world.
The following are some of the most significant statistics for business owners to keep in mind:
⦁ A survey of 6,000 UK workers found that 69% were confident about moving to a new role within the next few months
⦁ 24% also said they were planning a change within the next 3 to 6 months
⦁ Workers are confident about being able to find new positions — only 16% say they’re worried about getting a new job
⦁ Hiring and training replacement employees is expensive — £25,000 per worker on average
⦁ Businesses are offering sign-on bonuses (up to £5,000), pay raises, and other benefits to attract new workers
What Caused It?
There’s not one specific cause for the sudden change in companies’ employee attrition rate. However, the following are a few potential factors that have contributed to The Great Resignation:
⦁ Toxic company cultures
⦁ Increased feelings of job insecurity, particularly in the case of companies that are restructuring or feel unstable (this became more common during the pandemic)
⦁ Employers’ failure to recognize employee performance
⦁ Poor employer response to COVID-19
It’s easy to assume that the primary reason for resignations is frustration with low wages. In reality, though, a lot of employees are willing to accept low wages in exchange for other things like a positive work culture, a more flexible schedule, etc.
How to Reframe the Great Resignation
It’s not hard to see why The Great Resignation is a problem for business owners and team leaders. However, it’s important to note that there are also some potential positives associated with this global trend. You just need to change the way you think of it.
Here are some tips to help you reframe and make the most of the current situation:
Consult Current Employees
If you want to avoid a mass resignation at your company — or if you want to prevent more resignations from happening — you need to get on the same page with the employees who have stuck around. Treat this as a chance to seek feedback from your team.
Sit down with some of your long-term employees and figure out why they’re staying. Talk to them about what they would like to see change, too.
Would they be more willing to stand by you if they got a raise? More flexibility with their schedule? A chance to work from home?
Find out what you can do to increase employee engagement and job satisfaction, then follow through.
Look for Gaps in Benefits and Company Culture
When you’re checking in with your team, be sure to ask them about potential gaps in their benefits or the company culture, too. Encourage employees to speak up about their wants and needs, and let them know that no suggestion is off-limits.
Keep in mind that this isn’t just about winning over your current employees. Improving company culture and offering a wide range of benefits will also make your company more appealing to early talent — particularly members of Generation Z. Young job seekers tend to care more about these things than older generations.
Explore Employee Demographics and Diversify if Needed
If you’ve currently seen an increase in resignations at your company, this might be a good time for you to evaluate employee demographics and diversify your staff.
Does your team look pretty homogenous? If so, you might unintentionally be making your company uninviting to job seekers, especially those who are of different ethnicities, races, ages, etc.
For those who think they need to diversify, take a look at your job ads and other materials used to recruit new talent. Is there room for more diversity here? Are you making it clear that your company welcomes all people and is an equal opportunity employer?
Carry Out Skills Audits
The Great Resignation could present your existing team with exciting new upskilling opportunities. Now is a great time to carry out skills audits and identify gaps that are holding your company back from being successful and competitive.
Once you’ve identified these gaps, look into new training opportunities to help your team members expand their skills sets, redefine their roles within the business, and reimagine their futures.
Final Thoughts on the Great Opportunity
What do you think? Is The Great Resignation as terrible as you originally thought? Is it possible that you can accept its challenges while also turning it into something a bit more positive?
There’s no doubt that the UK’s (and the rest of the world’s) rising quit rate has impacted employee turnover and employee retention. With a little creativity and a change of attitude, though, you can turn this phenomenon into The Great Opportunity.
Use the tips listed above to start improving company culture, encouraging upskilling among existing team members, and creating new opportunities to recruit talent.
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