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The Great Resignation
Will it Continue through 2022?
2022 is upon us. With the New Year, many tend to commit to grand new routines (going to the gym, eating better, learning a new skill, etc.) and during this ongoing pandemic, one must wonder if positive changes in terms of employment, education and/or new perspectives are also on the calendar. Contemplating a career change? Read ahead for some points to consider, and hear SAS therapists’ perspectives, as you weigh your options.
Along with the COVID-19 pandemic, came what has been dubbed “The Great Resignation” in which millions of Americans have quit their jobs. But, why? In March 2020, countless offices and business were forced to abruptly shutter; millions lost their jobs and an estimated 42% of Americans began to work remotely.[1] This restructuring to work remotely has had a profound impact on how people think about their jobs, specifically when and where they want to work. In a June 2021 article, NPR quotes Tsedal Neeley, a professor at Harvard Business School and author of the book Remote Work Revolution: Succeeding from Anywhere, “We have changed. Work has changed. The way we think about time and space has changed." Neeley then adds a key point - “Workers now crave the flexibility given to them in the pandemic - which had previously been unattainable.”[2]
The crisis of the pandemic, fear of becoming ill and/or losing a loved one as well as fear of the unknown led to Americans beginning to see their life-work balance through a new lens. Many began to rethink what their work means to them, how they are valued in the workplace and how they spend their time. This has led to a significant increase in resignations, with the U.S. Labor Department reporting over four million people quitting their jobs from July-November of 2021 as Covid infections continued to spread throughout the United States. While normally high quit-levels are indicative of a healthy economy with plentiful jobs, the pandemic has led to the worst U.S. recession in history, with millions of people out of work. At the same time, acute labor shortages are being reported.[3]
It’s important to note that while the primary focus of this article is about the “Great Resignation” wherein people have chosen to leave their place of employment, roughly 10 million Americans have unwillingly lost their jobs during the pandemic.[4] Restaurants have shuttered, concert venues fell silent, small businesses collapsed and countless Americans found themselves in severe financial insecurity. Notably, women have borne the brunt of job losses as they are over-represented in low-wage service jobs, have been hit hard by increased child-care demands brought on Covid’s disruption of school reopenings as well as the initial lack of vaccines for children.[5] Further, those with compromised immune systems and/or underlying medical conditions (or who have family/loved ones with such) have had to be especially vigilant to not become exposed to the Coronavirus; thus many have been unable to return to their jobs if exposure was probable, due to safety concerns. In a January, 2022 article by The Guardian, Heidi Shierholz, president of the Economic Policy Institute noted, “We know there are millions of people who are still out of the labor force because of health and safety concerns. We know that parents are out of the labor force because of ongoing Covid-related care responsibilities.”[6] For those unwillingly out of the workforce during this health crisis, the following information and considerations should also be of benefit when contemplating next career steps.
SECTORS FACING GREATEST WALK-OFFS
As The Washington Post reports, those resigning seem to come from every industry and span generations. Those in the leisure and hospitality services have been primary contributors of the mass exodus in the Great Resignation. According to NRP, these industries (which includes jobs in hotels, bars, restaurants, theme parks and entertainment venues) have become increasingly stressful during the pandemic, with scant staffing and constant battles with unmasked customers building up to many departing their jobs. In addition, because those working in the leisure/hospitality sectors have had maintained contact with the public, workers in these fields have been subjected to increased exposure to Covid as they could not isolate nor work remotely in these positions. As many companies leisure/hospitality companies offered furloughs, workers accepted at an unprecedented rate due to the increased stressors and risk of infection.[7]
But it’s not just the leisure/hospitality sectors that are seeing massive quit levels. Data from the Bureau of Labor Statistics has shown an exodus of workers leaving retail, warehouses, food service, health-care and social- assistance jobs at record levels. Quit levels have soared among manufacturing and warehouse workers, straining under excessive pressures of surging demand and crunched supply chains. The Post cites reasons for leaving one’s position during the pandemic include: following through on long-deferred plans to leave; no longer willing or able to wait out the pandemic; being burned out from too many long shifts; too many late nights and unspent vacation days. Furthermore, the public health crisis led to a reassessment of one’s jobs and priorities.[8]
Economists have noted that the pandemic has led to low-wage workers in America revolting against years of poor pay and stressful conditions. Many are now less-willing to endure inconvenient hours with low compensation, leading to the pursuit of better opportunities.[9]
Ian Cook and his team at Harvard Business Review sought to explore the staggering statistics of quits occurring since the pandemic occurred. They conducted an in-depth analysis of more than 9 million employee records from more than 4,000 companies.[10] The global dataset included employees across a variety of industries, functions, and levels of experience, and revealed two key trends.
1. Resignation rates are highest among mid-career employees, aged 30-45. Employees in this age group (dubbed “mid-career” by the researchers) have had the greatest increase in resignation rates, with an average increase of more than 20% between 2020 and 2021. Cook and his team note that there are a few factors to help to explain why the increase in resignations have been largely driven by this cohort. Namely, mid-level employees are more-likely to be fully trained in their positions, making remote work a relatively easy shift compared to someone with less experience in the company. The team notes this could create greater demand for mid-career employees, giving them greater leverage in securing new positions.
Additionally, it is possible that many mid-level employees may have delayed transitioning out of their roles due to the uncertainty caused by the pandemic. Cook suggests the spike in resignations could be the result of more than a year’s worth of pent-up work frustrations and pressures such as continual high workloads, hiring freezes, and other pressures, causing workers to rethink their work and life goals.[11]
2. Resignations have been highest in the tech and health care industries. Cook et al. also identified notable differences in turnover rates between companies across different industries and found the health care industry had a 3.6% increase, while the tech sector had a 4.5% increase in resignations from 2020-2021.
The team suggested that resignation rates were higher among employees who worked in fields that had experienced extreme increases in demand due to the pandemic, likely leading to increased workloads and burnout. [12]
A NEW PERSPECTIVE
An unforeseen side-effect of the pandemic has been that much of the workforce has come to rethink their current careers, priorities and lifestyles. According to Gallup research conducted in the summer of 2021, nearly half of American workers were actively searching or watching for new job opportunities.[13] And, at the end of November 2021, there were more than 10.6 million unfilled jobs in the U.S. workforce, according to data released by the Labor Department,[14] thus suggesting that workers are taking time to find the “right” positions for themselves. Further, with government stimulus leading to surges in savings, booming stock markets and fewer spending options during the pandemic, some households have more funds to sustain them in the interim as workers seek to find more ideal employment situations.[15] Additionally, as The Guardian notes, “For those quitting in response to higher wages or greater health risks or greater care insecurity, it is not so simple as to think that they would prefer not to work, but rather, that they cannot afford to keep the jobs they have.”[15]
Grant Thornton’s recent “State of Work in America” survey found that flexibility is key for many employees now, in regards to when and where work is done. Respondents indicated that flexibility actually outweighs compensation as a concern and half of the sample noted they would give up a salary increase for more flexibility. Given that burnout is a top reason why employees seek out other opportunities, flexibility can be the primary mitigating factor.[16] Out of Office co-author, Anne Helen Petersen, asserts "The status quo of us being in offices from a certain time to a certain time every day is very arbitrary. It's based on rhythms that are no longer ours. It's based on an understanding that there is a caretaker at home for most families in the United States, and that's not necessarily the case." Now is a good time to revisit what she calls "arbitrary understandings of how many hours your butt should be in a chair in the office." After all, notes Petersen, "You don't need to be in an office to answer emails."[17]
The result of such high unemployment numbers have led to a shift in the worker having increased bargaining and negotiation powers. Mark Hamrick, senior economic analyst at Bankrate asserts, “As a result of many changes caused by the pandemic, many employers will need to continue to consider raising wages and improving working conditions, such as providing more flexibility, as they attempt to attract and retain workers.”[18]
The proverbial battle for talent in the workplace has spurred some companies to raise wages and offer sign-on bonuses. In May, the national average hourly pay for non-managers at restaurants and bars topped $15. Companies such as Costco, Amazon, CVS and Walgreens all have hourly minimums of $15 or higher. Further, Walmart, Target and Amazon announced they would begin offering free college tuition and textbooks to employees.[19]
IMPROVING WORKER RETENTION
Explorance, a leader in experience management (XM) solutions, commissioned a survey of 2,000 U.S. part- and full-time-employed adults to probe hidden drivers behind The Great Resignation. Their key finding came down to: “feedback that goes unheard.”[20]
A majority of respondents noted they are eager to share feedback with employers and do so in the hopes of driving positive change in their workplace. However, employees (including many executives) indicated that far too often their feedback goes unheard and does not result in meaningful change. Moreover, while 78% of respondents indicated they were “eager to take company surveys,” 50% noted they were not surveyed by their employer in the previous year. Further, 45% of the sample felt that even when surveys were implemented, no meaningful change ever comes from them.[21]
Samer Saab, founder and CEO of Explorance, notes, "This data not only reveals new insights as to why employees are looking to change jobs. It also shows that responding to employee feedback by making meaningful changes can improve employee inclusion and retention."[22]
Explorance suggests that employers can take three steps to slow attrition:[23]
1. Solicit feedback from employees, including open-ended questions that allow them to speak candidly and share their thoughts.
2. Analyze the survey results and communicate the key findings to employees.
3. Act. To truly close the loop, employers must quickly turn insights into action and address employee concerns rapidly -- or risk hearing about them again in exit interviews.
Flexibility in the workplace is another factor that can slow the number of resignations a company experiences. While some personality types thrive in an office environment, others shine away from the fray and perform better remotely. Shifting hours or split schedules for remote work are another driver of employee satisfaction; if the company’s business hours align, employees can work 7:00-3:00, or even a split day of 9:00-3:00 plus 7:00-9:00 which may accommodate people with school-aged children better or those who have higher productivity with a break mid-day. Additionally, some workers need a break from home and do best with the separation of work and home spaces; thus, allowing a flex-schedule for employees to work from the office some days and home other days, may be of benefit.[24]
CONSIDERING YOUR OPTIONS
Telford and Gregg of The Washington Post offer that if someone is contemplating resigning from their job but are unsure if or when they should, they may want to consider some options:
- Can you move to a different team or department to increase satisfaction?
- Can you take on fewer tasks, add more-interesting tasks, or shift some responsibilities?
- Is there something your employer could provide (e.g., more money, a promotion, more time off) that would give your role more meaning?
Given the current labor climate, employees have stronger negotiating power when requesting change. If managers don’t engage in discussions and/or requests for change, then that might be the answer one needs.[25]
Q&A
SAS THERAPISTS OFFER INSIGHTS FOR THOSE CONSIDERING RESIGNATION
1) From a therapist’s perspective, how can someone know if they are at a point that they should resign from their current employment?
“I’m not sure I can give a definitive answer here, as context is very important. Generally speaking, if someone is spending a large amount of time thinking about quitting their job, then it is worth spending some time exploring this as an option in more detail, with the goal of moving from a reactive to a more intentional relationship to these ruminations.
The first thing I would suggest is that they get clarity on why they are considering leaving their job. They might be able to do this on their own through introspection, journaling, and/or meditation. That said, it can be much more helpful and effective to talk to someone about this - a career counselor, a psychotherapist, or someone else you trust who can be objective in helping you gain clarity on your motivations for leaving.
Some questions to consider: Do I want to quit my job, or do I want to quit my profession? Is it because I don’t like what I do for work? Do I not like who I am working for? Is it because I am anxious and/or depressed to the point that it is negatively impacting my life? Do these symptoms transcend my current work, or is it something I only experience with this particular job? Are there skills and treatments I can use to manage these symptoms?
Again, all of these questions should help an individual get clarity on why they want to quit their job.” (Jim McDonnell, LMHC)
“When someone cannot reach a proactive, solutions-focused way forward that accounts for the needs of both the employee and the employer - (the employee having had their needs and feelings understood and validated by a trusted other) - then it's time to resign (generally speaking, my opinion only).” (Liz Silvestrini, JD, LMHC)
2) For those resigning or considering resigning from their current employment, what guidance/advice would you offer them?
“If you have done the work on gaining clarity on why you want to leave, and have determined it does in fact make sense to quit (the Why), then it makes sense to consider the How and When of your departure.
Some questions to consider: Do you have resources and a plan for what happens up to and after your departure? Are their benefits or resources you can use to help ease the transition? Do you have social support to lean on during this time?
The theme here is, again, gaining clarity and intention rather than being impulsive and reactive.” (Jim McDonnell, LMHC)
“Focus on what you want for your next chapter and maintain that focus throughout the process to keep yourself in a position of empowered, forward momentum.” (Liz Silvestrini, JD, LMHC)
3) Do you have any other guidance/advice for someone dealing with a particularly stressful/potentially toxic work environment?
“The most important guidance I can give is to talk about this in a constructive way with someone. Someone who can help you gain clarity on your situation, provide care and support, and help you come up with options and a plan so that you feel empowered and intentional in the face of uncertainty and distress.” (Jim McDonnell, LMHC)
“Remember that you always have choices (forgive me or slap me if this sounds privileged, because it is). Remember that you have inherent dignity and worth and never deserve to live in toxicity. If something isn't serving you, find something else and write about your experience because this is never easy and your story will matter to the next person.” (Liz Silvestrini, JD, LMHC)
Contributed by: Jennifer (Ghahari) Smith, Ph.D.
Jim McDonnell, LMHC & Liz Silvestrini, JD, LMHC
Editor: Jennifer (Ghahari) Smith, Ph.D.
References
1 “Working 9 to 5? 'Out of Office' Author Says Maybe it's Time to Rethink That,” NPR: Author Interviews. (accessed 1-3-2022). https://www.npr.org/2021/12/13/1062991645/out-of-office-author-ann-helen-petersen
2 “As The Pandemic Recedes, Millions of Workers Are Saying 'I Quit',” NPR. (accessed 1-4-2022). https://www.npr.org/2021/06/24/1007914455/as-the-pandemic-recedes-millions-of-workers-are-saying-i-quit
3 Ibid.
4 “Fewer Jobs Have Been Lost in the EU Than in the U.S. During the COVID-19 Downturn,” Pew Research Center. (accessed 1-3-2022). https://www.pewresearch.org/fact-tank/2021/04/15/fewer-jobs-have-been-lost-in-the-eu-than-in-the-u-s-during-the-covid-19-downturn/
5 “Why is Everyone Quitting, and How Do I Know Whether it’s Time to Leave My Job?,” The Washington Post. (accessed 1-4-2022). https://www.washingtonpost.com/business/2021/10/13/great-resignation-faq-quit-your-job/
6 “Quitting is Just Half the Story: The Truth Behind the ‘Great Resignation,’” The Guardian. (accessed 1-5-2022). https://amp.theguardian.com/business/2022/jan/04/great-resignation-quitting-us-unemployment-economy
7 NPR.
8 The Washington Post.
9 Ibid.
10 “Who Is Driving the Great Resignation?,” Harvard Business Review. (accessed 1-4-2022). https://hbr.org/2021/09/who-is-driving-the-great-resignation
11 Ibid.
12 Ibid.
13 “The 'Great Resignation' Is Really the 'Great Discontent',” Gallup. (accessed 1-5-2022). https://www.gallup.com/workplace/351545/great-resignation-really-great-discontent.aspx
14 “Job Openings and Labor Turnover Summary,” U.S. Bureau of Labor Statistics: Economic News Release. (accessed 1-5-2022). https://www.bls.gov/news.release/jolts.nr0.htm
15 The Washington Post.
16 The Guardian.
17 Ibid.
18 NPR: Author Interviews.
19 The Washington Post.
20 Ibid.
21 “Why Are People Really Leaving Their Jobs? The Whole Reason Can Be Summed Up in 4 Words,” Inc. (accessed 1-3-2022). https://www.inc.com/marcel-schwantes/why-are-people-really-leaving-their-jobs-whole-reason-can-be-summed-up-in-4-words.html
22 Ibid.
23 Ibid.
24 Ibid.
25 NPR: Author Interviews.
26 The Washington Post.