Remember that trend of mass resignations that made the news a couple of years ago? Well, experts say the Great Resignation is pretty much over now. The jobs market is back to its pre-pandemic state, and companies are no longer scrambling to get a piece of the limited talent pool.
So what exactly happened, and how does this matter to businesses and workers alike? Let’s find out.
Also known as the Big Quit, the Great Resignation of 2021 was a phenomenon marked by the mass quitting of workers from various companies across different industries. The reason varies from one resignee to another, but it all boils down to low workplace morale.
The isolation from remote work, for instance, coupled with low pay and lack of opportunities to advance in many cases, left workers feeling undervalued. As such, many ended up leaving for greener pastures or going on a sabbatical for that much-needed breather.
It’s been a couple of years since we’ve seen businesses, with some sector exceptions, panic over their shrinking workforce and talent pools, and experts say that the worker mass exodus is over. Economic realities have caught on; the rapidly increasing inflation rates and fears of a recession got workers thinking twice about leaving their jobs, even if there exist better opportunities worth risking their job security for.
While fears of a looming economic crisis stopped the Great Resignation in its tracks, the fact that the phenomenon is over is great news for companies. Specifically, here’s how it can benefit them:
Increased worker retention. Obviously, when workers are more inclined to stay, the company has a higher chance of retaining them. Companies should take this chance to build a healthy work environment to consolidate existing talent.
Stability and continuity. When people stop quitting, companies will no longer have to deal with turnovers, hiring new people and the general disruptions the resignation of key personnel can bring to the business.
Cost savings. Losing employees from resignation or termination costs money. Companies will have to shell out cash for separation fees, the occasional litigation, and hiring and training new talent.
Surprisingly, the stabilised job market actually works to workers’ advantage, and here’s why:
Although it is riskier to quit these days, companies are also adverse to letting people go. There is no longer a huge talent pool of resignees for hiring managers to tap into, making terminations and rehiring more expensive.
More career opportunities
As businesses are less likely to let go of people, employees have a better chance to advance within their current organisation. Meanwhile, job seekers get to enjoy more opportunities for employment owing to a stable job market.
Employees who really have to quit will find it easier to find a new job, thanks again to the job market stability. It also helps that workers are now in a better position at the negotiation table, especially as many companies seek to attract more talent.