The number of people quitting their jobs continues to smash records month after month in 2021. While this might seem counter-intuitive in an economically unstable world, it does make sense when you dig a bit deeper. PIQNIC takes an in-depth look.
What is "The Big Quit"?
The term "The Big Quit", or "The Great Resignation" has lately been coined to refer to the exodus of employees in the post-pandemic 2021 that continues to be felt in countries all over the world. Since April 2021 numerous sources have reported that there is a rise in resignations, with employees not entering the workforce in other areas or companies right away as was expected. (CNBC)
What has given rise to this trend?
- Inflexible working conditions, with workers wanting remote work or hybrid work as an option
(Foundation for Economic Education) - Delayed resignations due to pandemic uncertainty (Forbes)
- Personal circumstances like a lack of childcare, mental wellbeing or illness in the family (BBC)
- Burnout - particularly in industries that had worked throughout the pandemic like essential services (Market Watch, The Lancet)
- Delayed retirements (The Guardian)
- Re-evaluating their future goals, such as changing careers entirely or studying something new. (Prudential; Business Insider)
- Where unemployment benefits are available, this has in part incentivized workers to stay home rather than return to work. (GoBankingRates.com)
- Mishandling of the pandemic by some companies (BBC, Visier)
- Women are more likely to leave due to family responsibilities (CBS)
- New opportunities available like freelancing or available jobs in the market (CNBC)
- Aggressive recruitment from companies that have lost valuable key employees (Newsroom)
Embrace "The Big Quit"
Some industries are more at risk and less resilient when it comes to losing staff. In the case of manufacturing businesses, this has led to automation happening at an accelerated pace. In other industries, new ways of conducting business have led to the rise of hybrid work and the digital nomad phenomenon. While retail, hospitality and healthcare industries had to take the hit, others have been able to pivot and respond with innovation and creativity.
Says New Zealand Human Resources expert Beatrice Roets from Koru Talent:
"Whist retaining current employees is really important, many companies fail miserably when it comes to attracting the right skills. From boring advertisements, unnecessary time delays, lack of feedback, unprepared interviewers, lack of human interaction and unwillingness to negotiate whether it is salary, flexible working hours (even a 4-day working week) or remote working.
I am amazed about the amount of arrogancy around “we are the employer of choice” – especially with larger corporates. They have this idea that people are queuing outside to work for them.
Those days are long gone. Candidates have more options and are willing to take the risk of not accepting an offer and wait for a role that aligns better with their requirements. I have seen candidates resigning within the first couple of weeks because companies fail miserably when onboarding a new employee. Work stations are not allocated and they are not even provided with the necessary tools to hit the ground running. Simple things such as passwords and access to important portholes…
Now, more than ever, people are “craving” a work environment where they can also have fun. Acknowledging that a lot of companies are in survival mode – it is still important to have fun. Create a culture of celebration and fun. Even something as simple as a birthday celebration, company anniversary, the completion of a project, achieving production targets or when a new contract is awarded. Cultural fit is often the most important factor candidates consider when applying for a role.
Maybe we all need to go back to the drawing board and re-design our recruitment process, ask ourselves if our onboarding process is newbie-friendly and are employees excited to work for us. Are their efforts being recognised and celebrated, is there career progression, flexibility and is our culture one of respect, inclusion and fun."
Your business can benefit from assessing the risks it faces with a higher quit rate, such as losing valuable industry knowledge and experience without being able to replace it. In Australia, New Zealand and the USA, it is reported that there is a war for talent coupled with fewer immigrants being brought in to fill skilled roles. This poses the risk that positions vacated by the employees you lose cannot be refilled. It is vital that you pinpoint the skills and services that are absolutely necessary to continue working, eliminate the fluff and adjust to what is realistic. Identify the gaps and risks to your business, and find ways to mitigate them. It may be an opportunity to upskill someone that is well on their way to filling the vacant seat. It may be time to outsource an area that is not your core business. Or it may be time to organise, automate and improve your internal processes.
Advice about avoiding "The Big Quit"
Employer strategies for retaining or attracting employees right now are a huge focus. Valid advice about open communication, company culture and retention strategies is being given. (Avilar) Predictions are being made of a mass exodus that will continue for some time, so you need to prepare your response now. (Visier) Internally you can offer flexible arrangements, develop your management team and connect your team to your company values. (Fast Company) There is a further prediction that the flexibility of remote work will result in a rise in freelance workers, which can be an opportunity for some businesses to utilise skills they wouldn't have access to normally. (Small Biz Genius)
It seems inevitable that "The Big Quit" will touch every business in some way, and all businesses should prepare and adapt. One way of adapting is changing the way your business functions. Some changes over the past two years have happened out of necessity, such as Zoom calls replacing in-person team meetings. The office water cooler chat has been replaced by chat apps like Teams and Hangouts. It is possible that "The Big Quit" offers you an opportunity to re-evaluate your way of working and to reimagine a workplace that encourages productivity, flexibility and quality of life. Another possible opportunity is employees that are ready to move from companies that don't offer them the right circumstances will be ready to join your company, provided you are offering them what they need. (Fortune)
Research shows that many employees have been able to be more productive while working from home. (Harvard Business Review) Many workers have found that their office environment did not improve their productivity but did in fact harm it. (PIQNIC)
Statistics show that offices are often a harmful environment for productivity with workers interrupted on average once every 11 minutes and, if left uninterrupted following that interaction, take another 22 minutes to get back to full productivity. (Management Issues)
People are expecting more from companies. Companies are expecting productivity and accountability. Realistically, not every business can create the perfect set of circumstances for every single employee. However, there are some things every company can do to create an environment that helps workers feel valued, appreciated, heard and respected. The caveat is that there needs to be a relationship of trust and fostering a good work culture is imperative. (BBC) Retaining employees is not just about money anymore - it's about a workplace culture that is meaningful, mutually beneficial and human. It takes 6-9 months to onboard a new employee successfully, and with a wave of resignations, this can seriously damage productivity and profitability. So it is vitally important to invest in the right people and processes right now. (BBC)
Which steps can you take to embrace "The Big Quit"?
You've probably already adapted in many forms to the "New Normal" post-2020. Some companies have strategists that plan their response and work out every detail ahead of time, with a clear rollout and great communication. It's also possible that you have had to roll with the punches, take it day to day and figure it out as you go. If that sounds like you, then you are in good company. You probably value your employees, you want to do well for them and you want your company to succeed. You are also juggling home, children, work and employees while wondering what the future will hold for you and your business. You might be facing employees leaving right now and wondering how to deal with it all. PIQNIC has some ideas on how you can do just that:
- Create more flexibility in your workplace
- Work with employees to manage tasks while they are working from home during a pandemic
- Prevent burnout
- Assist with reaching their personal goals
- Better handle communication about the pandemic and your future goals as a company
- Work with freelancers or other contractors
Now let's take a more in-depth look at how you can achieve each of these ideas within your business:
-
Create more flexibility in your workplace
Implementing some processes and using the correct tools to work with your employees can be greatly beneficial to all involved. When you have processes in place that help your team get the work done, and know what is expected from each person, when it is expected and how to go about it. Tools like task management apps and chat apps can be useful. PIQNIC is such a tool and has functions to automate tasks, assign responsibility, create messages and send notifications in one platform. This allows employees to manage their own time while being productive in the time they are able to allocate to work. Creating a flexible work environment can help you to keep your workforce in place by providing them with options, and it can also help you to attract the right replacements where your vacancies are creating space for them. It can also help you to continue to reach your goals as an employer by meeting deadlines, serving customers and being profitable, with less time wasted and less money spent.
-
Work with employees to manage tasks while they are working from home during a pandemic
Creating flexibility and managing tasks go hand in hand. Employees may need to have access to documents, programs and apps while working remotely that they wouldn't require otherwise. Document management platforms like PIQNIC can give them that access while protecting your company with robust security. The task management function will also allow you to assign tasks, track progress and manage deadlines. Another functionality for managing tasks is automating repetitive tasks and creating workflows that take the effort out of planning and implementing the next task (think one action triggers the next, like a Rube Goldberg Machine). Furthermore, the team will be able to track responsibilities, work with people inside and outside the organisation and be productive. Communication within the team must be a priority, to ensure productivity and to keep work happening. Again, PIQNIC is able to provide communication channels. With this opportunity for better work management, you not only help your current staff be more productive, but you also create a better workplace environment for future talent that joins you.
-
Prevent burnout
With flexibility and better management of tasks and communication, you've come a long way in helping employees manage their workload. This in turn will help them to prevent burnout. It is obviously not the entire solution, and for this, you would need to look at the advice of human resources experts for preventing burnout. Some of the points raised by Kazoo is to allow meeting-free time for deep work, incentivise exercise, keep social events optional and create a positive environment for feedback. Another article by Michigan State University sites promoting work/life balance, monitoring workloads and scheduling, and prioritising workplace wellness. While PIQNIC cannot help you to prioritise wellness, it can help you with a place to have information on wellness, work/life balance and company policies available. It can also help you to monitor workloads, create schedules and automate repetitive tasks. These can all be building blocks in helping employees (and employer) burnout.
-
Assist with reaching their personal goals
In a pandemic, your last thought may be of how to assist an employee to upskill or plan for their future. Yet, this has been on the minds of many while they reassess their priorities and what they want from life during this time. One such consideration is time with family, another is a possible change in career path. If someone decides that they want a total change, there is not a lot you can do about that. However, you can help someone who would prefer a hybrid workplace or more time with family with a model to do that. You can also prioritise training for a committed employee that is wanting to change focus within your business, or that wants to advance. Creating an internal policy for remote work and hybrid work is a necessity, particularly for knowledge workers. This is an opportunity for you to assess your own personal and company goals, and to align your company with your goals. By assisting your current and future employees with achieving their own goals, you are also future-proofing your business directly and indirectly.
-
Better handle communication about the pandemic and your future goals as a company
As we start to adjust to the pandemic, we are now able to look back at the first two years and see clearly where we went wrong. Some companies handled their pandemic communication all wrong, and some failed to communicate at all. While there was a lot of uncertainty and fear, companies laying off employees or putting them on indefinite furlough, communication would have been key to keeping the workforce positivity high. This has not been the case in many companies. 80% of the world’s workforce are deskless employees, most of which are deemed essential—like supermarkets, healthcare, and manufacturing. (Beekeeper) However, this does not mean that they were not required to participate in meetings, communicate about their work and keep management updated on progress during this time. Companies relied on digital communications to a large extent, and needed to provide the tools and platforms for these communications. Employees now expect companies to provide resources and enhance visibility to engage with employees. They also expect flexibility and trust from employers, which they are also inclined to give when received. In a highly stressful environment, engaging with employees and prioritising people above profit can make a huge difference. (Limeade) PIQNIC can assist with providing a digital platform for documents, communication and connecting with peers and employers.
-
Work with freelancers or other contractors
This is an easy one to embrace. When employees leave knowledge and skills gaps, an easy way to fill the gap is to find a freelancer or contract a company that deals specifically with the task at hand. When you outsource something that is not your core business, it also frees up time to devote to your core functions. So for instance, someone internally had been handling marketing or accounts. This can easily be outsourced, and there is a myriad of companies providing such services. The rise of the "virtual assistant" means that some tasks can be permanently performed outside your organisation, or you can get someone to assist on an ad hoc basis. Either way, PIQNIC can help you manage this process by giving you a way to collaborate with a contractor in the same way as with an employee, for free. This means that you can seamlessly incorporate your freelancer or contract company into your business and team.
"The Big Quit" is a response to a worldwide phenomenon of employees facing a massive personal crisis that we all share. It has led to varied responses but ultimately has come down to a global trend of employees jumping ship. It is up to employers to mitigate the fallout or adapt to a world without employees. While there are some things we can't change, there are things PIQNIC can help you with. Book a free trial to see how we can assist you.
What's your experience of working in this area? Let us know in the comments below: