The Great Resignation - staff retention under difficult circumstances
The recent ongoing lockdowns have provided many with an opportunity to step back, spend more time doing other things, and question the value of their work. Now that the initial uncertainty of the pandemic has passed, people are becoming increasingly more likely to question their current role and feel more confident to consider switching companies.
According to AUT’s Wellbeing at Work study, only half as many people are committed to sticking with their job this year compared with 2020. This comes amid suggestions that the Great Resignation reported overseas could also happen here in New Zealand.
So what is the Great Resignation?
The Great Resignation is an informal name for the widespread trend of a significant number of workers leaving their jobs during the COVID-19 pandemic.
Interestingly, in the USA between December 2020 and February 2021 (more than half a year after the onset of the pandemic), the resignation rate never surpassed 2.4%. Compare this to the Great Recession in which the quit rate decreased from 2% to 1.3%. Low resignation rates appear to be the trend when economic stability and employment opportunities are low.
However in March and April 2020, resignations rose in the USA, with many of the layoffs and resignations consisting of the women who are disproportionately represented in the industries most affected by the lockdowns, such as service industries and childcare. Here in New Zealand, many working women and men have also faced the additional burden of juggling their careers with childcare duties and virtual schooling – sometimes an impossible balance that has led to long hours and fatigue.
As the pandemic continues in the USA, workers are paradoxically quitting their jobs in numbers despite the pressures of labour shortages and high unemployment.
Is New Zealand set to hit the same trend?
HR consultants are now warning that New Zealand’s longest COVID lockdown is fast-tracking workers’ motivations to quit their jobs. The trend has been driven by a number of issues, including pandemic fatigue, burnout and overall job dissatisfaction.
Since the first lockdown, AUT Human Resources Management Professor Jarrod Haar has conducted three surveys, each with 1,000 respondents, to get a sense of employee mood across various industries. He says the starkest difference between the first survey published in May last year and the most recent one published this month from data gathered in April, was the increase in workers’ willingness to leave their jobs.
How to retain good employees?
In this current climate, employers in New Zealand are now starting to use aggressive ‘talent grab’ strategies. Employers need to deal with this by carefully considering their value proposition and having open conversations with their workers. A value proposition should be stronger than salary alone, and should include company culture, work flexibility and opportunities to grow.
Do you have a good understanding of what your employees love about their work and what aspirations they have for the future? If not, now would be a good time to start having these conversations with your staff.
Data over the years has always shown that the thing people care about most is how companies treat their employees. This is measured by multiple metrics including wages, benefits and security, opportunities for advancement, and commitment to equity.
Throughout the pandemic, essential workers (often in lower paid positions) have borne the brunt of employers’ decisions. Many were working longer hours on smaller staffs and in positions requiring interaction with the public with little to no safety measures in place. The trend overseas has seen many retail and service workers departing in favour of entry-level positions elsewhere, such as warehouses or offices for instance – work that actually pays less but offers more benefits, a safer working environment, and compassion.
https://hbr.org/2021/09/who-is-driving-the-great-resignation
https://en.wikipedia.org/wiki/Great_Resignation
https://www.stuff.co.nz/business/126872476/unemployment-rate-plunges-to-34-per-cent-matching-record-low-in-2007
https://www.newsroom.co.nz/the-great-resignation-on-its-way-to-nz