The Great Resignation: How Can Employers Prepare?
December 20, 2021 by Rohini Sood
What's behind the Big Quit? Could the substantial unemployment benefits be the reason? Or could employees seek better job opportunities?
According to the US News, a whopping 4.4 million people quit their jobs in the US. That's a huge number! "The Great Resignation" is tangible and visible across all industries.
What could be the reason? Many people blame the substantial unemployment benefits that the Govt. rolled out during the pandemic. Could it be true? We'll have to wait and watch until the benefits phase out.
Let's analyze the situation in depth and determine the probable reason for the great resignation.
What's Behind the Great Resignation?
Some reasons that we can think of include the following:
Waning COVID-19 fears, with the availability of vaccinations, combined with decreased infections.
Employees may be looking for better and greener pastures.
Decently placed mid-level workers are opting to open their businesses.
Employees are looking for a greater work-life balance.
According to the HRExecutive, the 1,000 full-time US workers (who started jobs in 2021) state burnout (40%) as the main reason for leaving their job.
“This is not a Great Resignation; it’s a Great Migration.”
Josh says that the financial return on investment in people is greater than ever. He further explains that nearly 90% of the jobs in the US are service-centered, which means they add value through their human touch and care.
Therefore, companies need to ramp up their employee experience plan and capitalize on career pathways and the internal development of the workforce.
Suggestions for HR Professionals and Organizations
How can HR teams help overcome the tidal wave of "The Great Resignation" and end the labor crisis? Here are a few suggestions that might help the organization worldwide.
1. Provide a Fantastic Employee Experience
Employee experience has garnered favorable attention in the past year and a half. It is primarily due to the burnout employees face for several reasons. What is employee experience all about?
Employee experience summarizes an employee's viewpoint about your organization. It comprises how employees in your organization perceive the company culture over a certain period.
A great employee experience can bring visible benefits such as a broader talent pool, enhanced retention rates, and increased revenue.
Therefore, providing an excellent employee experience can make all the difference.
How is employee experience significant in recruitment?
A good EX will affect all recruitment areas, including screening, engagement, and retention. Studies reveal that many employees leave the organization within six months of joining it.
A great onboarding experience can significantly contribute to an employee's stay at the organization. It can change the perception of the employees towards the company. Here are some ways for a superior employee experience:
Strive for a fantastic onboarding experience
Invest in employee wellness
Offer rewards and compensation
Improve internal communication
Review employee feedback
What happens when employers give priority to employee health and well-being? A good employee becomes an invested employee when companies focus on employee well-being.
The recent wake of things has changed all industries' hiring paradigms. Hybrid work models have replaced the full-time-on-site jobs and given the much-required flexibility to employees to work remotely.
Similarly, employers have changed their strategies for hiring and onboarding new hires. Skills-based hiring has outdone the conventional approach to educational qualifications and four-year degrees.
How can RChilli help you find the right talent?
RChilli Taxonomy promotes skill-based hiring with its comprehensive collection of skills, job profiles, and related information. It currently provides 9,00,000+ Skills and 5,50,000+ Job Profiles in multiple languages.
Taxonomy enables you to understand better how to hire the right talent by helping you create skill profiles, conduct skill gap analysis and enhance your resume/job searching capability.
We live in the 21st century, where there’s no room for half-hearted attempts of employers to make their employees happy. Are your employees working with centuries-old HR software and hardware? Do they sleep while waiting for the software to find them suitable for the open position?
If you answered yes to any of the above, it’s high time to give your employees the appropriate tools and the latest technology to do their jobs efficiently. Consider investing in advanced HR tools, such as an AI-powered resume parser.
The modern HRTech solutions not only help to streamline the recruitment process but also help recruit top talent.
Will offering higher salaries to candidates solve the problem?
Money is crucial, and we all need to pay the bills. Wouldn't it be nice to have extra dollars to buy that expensive car you wished for the new year? Sure, it would be.
But don't think money will bring back labor; it would be short-term come back even if they do return. They may eventually quit because of burnout, leaving you in a lurch.
It's not money that Millennials and Gen Z are running after. Instead, they want to be well-compensated and be treated respectfully by their employers. It's the mental health and work-life balance that matter to them.
Let us know how your organization prepared for the great resignation.
Contact us for more information on our advanced HRTech solutions.