The Great Resignation. When the term was originally coined by Anthony Klotz in May of 2021, it was meant to capture the phenomenon of the initial surge in resignations from employees who chose not to quit during the height of COVID. Now, over a year later, the phenomenon has become a crisis that shows no sign of abating. Has what started as a backup of COVID resignations morphed into a completely different situation that we need to address?
Resignation levels have increased since the verbiage “the Great Resignation” was first termed. According to the U.S. Bureau of Labor Statistics, total “quits” (resignations) in May 2021 stood at just over 3.8 million for the month. Total “quits” in May 2022 has been reported at nearly 4.3 million. Although “quit” levels are beginning to stabilize, the numbers are still much higher than pre-COVID levels. In order to curb these high numbers, Human Resource professions must understand what is causing the continued pace.
While it is true that record numbers of employees are resigning, record numbers of employees are also being hired. The same Labor Statistics report states that “hire” numbers have been high, holding at about 6.5 million, with the net change in employment increasing.
“Over the 12 months ending in May, hires totaled 78.4 million and separations totaled 72.0 million, yielding a net employment gain of 6.4 million.” (“Separations” includes “quits,” “layoffs and discharges,” and “other separations.”)
U.S. Bureau of Labor Statistics
The stability of the net change indicates that high numbers of employees are not resigning to cease working – they are resigning to hire on at another job. Perhaps a better term for the current environment is, as the U.S. Chamber of Commerce recently suggested, the “Great Reshuffle.” Or, as offered in an article in the Harvard Business Review, a “Great Exploration.”
By properly identifying the current environment as one not of resignation, but of reshuffle, Human Resources professionals can begin to dig in to root causes and curb the situation. Consider why employees would want to shuffle out of your company? Is it pay related, poor management, or environmental? Ask yourself why a “great exploration” would need to take place outside of your walls. Is there no opportunity for growth or lateral movement into other areas of interest within the company?
Correctly identifying the problem is the first step of any solution. By recognizing that the “great resignation” isn’t a flight to retirement but a fleeing from the current job, Human Resources professionals can properly examine and address the situation, reducing resignations and creating a better work environment for all.