Factors That Caused the Great Resignation and How Employers Can Stay Competitive

In recent years we have been reading about a phenomenon called the Great Resignation. While the Great Resignation may have started before the COVID-19 pandemic, however, it has become much more prominent since then. It is the name given to the trend of employees switching jobs, choosing to leave their workplaces, or those who are choosing to work for themselves. The labor market has been disrupted and changed by this phenomenon, and many companies are struggling to find workers or are having to change their hiring practices, change the way they offer benefits, or change the expectations they have for workers.

Employees are looking for healthier work environments as well as fulfilling, interesting work to do. They also want freedom from restrictive and controlling managers, schedules, and tasks. Workers are questioning their priorities and asking themselves if they want to spend their lives doing the jobs and careers that they are currently doing. There are many complex factors that have driven the Great Resignation, but most of them can be summed up into this list: 

Burnout

Employees often mention burnout as one of the things contributing to their desire to switch jobs or begin working from home. Burnout often happens when workers are working too hard or have no support. It can also happen when they don’t enjoy their work, aren’t feeling appreciated, or there is a toxic work environment. Employees who are feeling burnt out may often switch workplaces or even change careers in an effort to alleviate the feeling.

Reevaluating Priorities

Many employees found that their priorities shifted during and after the pandemic. Some people say this happened during the lockdown when people found themselves at home and spending a lot of time with their families, their hobbies, or other similar priorities. People found that they didn’t want to go back to their regular hours and in some cases, no longer wanted to work out of the home at all. Priorities, especially the priorities of family and children, often shifted for people and drove the desire to work from home or have a flexible schedule.

For other people, reevaluating priorities impacted the companies that they chose to work for. People are less willing to be associated with companies whose moral values are opposed to their own, and in many cases, won’t continue working with businesses in these situations. Quitting has become a new way to boycott companies. For example, the 2023 Esker Survey: Sustainability in the Workplace explains how vital a company’s economic policy is to workers.

Focus on Work-Life Balance

In the wake of the pandemic, many individuals are prioritizing their personal lives and well-being over their careers. This has led to an increased focus on work-life balance, with more people seeking careers that allow for flexible scheduling, remote work, and other benefits that allow them to prioritize their personal lives. A new focus on work-life balance has also come about because of the increasing focus on mental health both in the workplace and at home. During the pandemic, we saw very high rates of mental health concerns, and this may have influenced workers’ desire to have a better work-life balance.

Pursuing Passions

With the pandemic forcing many people to re-evaluate their priorities, more individuals are pursuing careers that align with their passions and interests. This has led to an increase in entrepreneurship, as well as a shift towards careers in the creative industries, such as art, music, and writing. Many of these interests led to new businesses and opportunities for these people, and in some cases, completely new careers. 

Emphasis on Purpose

In addition to pursuing their passions, many individuals are seeking careers that provide a sense of purpose and meaning. This has led to an increase in careers related to social impact and sustainability, as well as a greater emphasis on companies with clear missions and values. Many workers found that a sense of purpose and causes outside of work can increase their quality of life and help them to feel more interested and fulfilled in life.

Desire for Autonomy

The pandemic has also highlighted the importance of autonomy in the workplace. Many individuals are seeking careers that allow for greater independence and control over their work, rather than being micromanaged by their employers. For many people, this looks like flexible hours or remote work. For others, it can mean leaving the workplace altogether. These people are seeking to retire early, become freelance workers, or start their own businesses.

Importance of Company Culture

With so many individuals working remotely, the importance of company culture has become more vital than ever. Many individuals are seeking careers with companies that have a strong culture of support and collaboration, as well as a focus on employee well-being and mental health. Company culture and environment, as well as the company’s mission and focus on humanitarian causes, environmental causes, and other charitable causes can help workers feel connected and appreciated and give them a sense of purpose.

Conclusion

Overall, the Great Resignation has caused a significant shift in the way people are choosing their careers. It was a complex phenomenon caused by several factors, many (but not all) of which were driven by the pandemic and by an increasing desire for a better work environment. In order to stay competitive in the labor market, employers must adapt to these changes and offer flexible work arrangements, meaningful work, and opportunities for professional development to retain their employees.

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