Here we are, in the midst of the “Great Resignation“– a time when people are quitting their jobs at historic rates. Just in December 2021 alone, 4.3 million Americans resigned from their jobs. Among those resignations, 776,000 came from the business services sector. As someone who works with executives building focused and productive workforces, I find these statistics quite significant, and companies across the country should be concerned.
There are a number of factors behind the mass exodus of the workforce. The pandemic was the initial force, but gradually the reasons for leaving work have started to shift beyond health concerns. Following COVID-19 lockdowns and the shift to working from home, people began to identify or rediscover what really matters to them. This is what the problem ultimately boils down to: employees are resigning in record numbers because employers can’t give them what they want.
Top 5 Reasons People Are Quitting Their Jobs
1. Their employer does not offer remote work options. People are accustomed to working from home. They can work from anywhere: the home office, couch, patio, park, and coffee shop offer variety, and employees can choose where they focus best. Two years ago, just 1 in 67 jobs was remote. Today, it’s 1 in 6. That’s reflected in research that shows 87% of workers want to work from home at least half the time. Plus, employees save money by not having to pay for commuting, parking, business attire, extra childcare, and meals away from home, which ends up being the equivalent of a $4,000 raise.
2. They feel undervalued by their employer. Workers are demanding better salaries and benefits. Employees want to know that their input is welcome in the workplace, their ambitions are taken seriously, and their needs are seen as valid and important. If their paycheck does not reflect the perceived value they add to the company, workers will leave. Employees are placing a growing importance on respect, in addition to a raise.
3. They can afford to be picky. The top 20% of Americans got richer from the pandemic. The bottom 25% of income earners also saw a 50% raise in checking account balances. Government stimulus checks, billions of dollars spent on the economy, and unemployment benefits all helped to keep households afloat, and a lot of them are thriving. Many Americans were in a position to save the extra money or invest it in the stock market. By doing so, workers had the ability to quit unsatisfactory jobs and look for new opportunities instead.
4. They started their own business or side hustle. During initial lockdowns, spending lots of time at home forced people to take up new hobbies in their free time. As a result, people started side hustles with their newfound hobbies. Many Americans then made the leap to converting their side hustles into a full-time businesses. According to the Census Bureau, there was a 24 percent increase in Americans filing for new businesses in 2021.
5. People are re-evaluating what matters. At the end of the day, living through a global pandemic has shifted people’s perspective about what they value most. With COVID-19 deaths approaching a million in the US, family and home have become top priorities for the majority of Americans. Working a flexible, well-paying job that allows employees to spend time with and provide for their families is a big reason people are quitting jobs that don’t support that goal.
How to Retain Your Employees
Companies that decide to empathize with and embrace the evolving needs of a pandemic workforce are the companies that will retain the most employees. Workers are looking to their management to make executive decisions that will benefit the whole of the company, not just the C-level.
A hybrid workplace is critical to employees today. If a leader is opposed to remote work because they think employees are not working unless they are visibly present, those leaders need to revisit the facts. Productivity soared during the pandemic when relatively no one was in the office, no one was physically supervised, and only essential workers commuted to work.
Prioritizing mental health is another reason people are quitting their jobs. If a job is consistently causing burnout and demanding strict office hours, employees are going to pull the plug. People are more focused on their emotional, psychological, and social well-being during the pandemic, and that trend is continuing.
So how can you prevent your own employees from eyeing the exits and have them enjoy their jobs again? First, understand why they’re leaving, and respect that. Then, build some of what they’re leaving for into your company’s culture. Bottom line, people leave for comfort, and stay for culture. Make your culture fit their needs well, and they’re more likely to stay.
For more information on how to enjoy work and avoid burnout, check out my recent TED Talk.