The Great Resignation was triggered by the pandemic – so why aren’t resignations slowing down now as it wanes?
Some of these things have been bubbling over the past decade or more, and the pandemic really just put a magnifying glass over it all – Kristie McAlpine
Post-pandemic factors
At the moment, says Anthony C Klotz, a professor of management at University College London's School of Management who coined the term “Great Resignation”, quit rates have more or less plateaued, but he doesn’t expect them to drop in any meaningful way in the immediate future.
In addition to the original push factors, he says that the reasons people are resigning have diversified. For instance, some workers are now swapping jobs that require them to be present in the workplace for remote positions; other workers, he says, are leaving remote jobs for ones that have a larger in-person component.
Some of the moves are getting even bigger, as people leave not just their jobs, but their professions entirely. “It’s not just about what's happening in an industry,” he says. “And that kind of supports the notion that people are looking for a change coming out of the pandemic or they're not afraid to completely switch to a new chapter of their career.”
McAlpine concurs, saying the role a job plays in someone’s life has shifted, which could permanently change the way people select positions and whether they stay or go. “Of course, people want to be compensated fairly, but they're also looking for some connection and meaning in what they do,” she says. Workers may be looking for ways to restore wellbeing, adds Klotz, noting that moving to a new job is often an attempt to reclaim wellness.
Klotz also believes that resignations have become somewhat self-perpetuating, potentially prolonging the period of quitting. “Turnover contagion is real,” he says. “When you have colleagues who leave first, it's almost always a bummer, because usually it's a little bit more work for you. At the same time, though, it puts the idea in your head that it's doable to make that leap. It’s hard to stop that cycle of resignations for organisations, because with each one, it's like it logically puts the idea in other people's minds about the possibility of it.”
A lasting shift?
While Klotz believes these quit numbers are poised to stay high in the short-term, the impending economic downturn and general uncertainty around the future of the labour market could change things down the line.
It’s reasonable to think a major recession would, at the very least, slow down the quit rate. “It would stand to reason that if a recession comes in, the job market gets worse. So, there's fewer options for employees to switch from one company to another. Because there just aren't as many jobs, resignations should absolutely go down,” says Klotz. “Maybe not as much as they would have before the pandemic, but they'll definitely drop.”
Already there are some signs high living costs and inflation are influencing worker behaviour; in the UK, data points to a “Great Unretirement” as older people return to the workforce to make ends meet. Other data, meanwhile, suggests more ‘boomerang employees’ are returning to previous roles in the wake of pandemic moves.
But it’s unclear, says McAlpine, whether even a global financial crisis would be enough to stem the tide of the Great Resignation and keep people in jobs they want to leave. “We’ll see what happens if we do indeed head into a recession,” she says. “But I think that as long as workers have an understanding of what they're looking for, employers are going to have to make some changes in order to accommodate that. And it seems like people will be willing to leave if they don't get it.”
FAQs
Why are people quitting their jobs? At the onset of the Great Resignation in Spring 2021, the most cited reason among respondents in the McKinsey survey for why they quit their jobs is feeling uncared for by managers and tense relationships with colleagues.
Why are so many people quitting their jobs right now? ›
They needed better work-life balance brought on by pandemic pressures and new lifestyles. They had new job opportunities in the same or different fields. There were opportunities to be self-employed, start a new business, or become a gig worker.
What is the number 1 reason good employees quit? ›
They're unhappy with management
A common reason good employees leave is due to inefficient or unskilled management. All employees want others to hear and value their opinions, and they can become frustrated if their managers or company leaders are not open to their input.
What happens when too many employees quit? ›
When multiple employees quit at the same time, it can be a major challenge for any organisation. Losing several team members all at once can cause disruptions to workflow, team dynamics, and overall productivity. It can also result in a significant loss of institutional knowledge and experience.
Which generation quits the most? ›
Gen Z workers, aged between 18 and 26, make up about 35% of those wanting to quit, while millennials (aged 27 to 42) are another 31%. The common reason cited by 44% of the workers considering quitting their jobs is overwork.
How are people affording to not work? ›
Retirement rates increased
A stock market tear during the pandemic ballooned the assets of some older Americans, allowing them to subsist without income. Meanwhile, the heightened risk of severe illness faced by older Americans amid the COVID outbreak left them fearful of exposure at the workplace, Sojourner said.
What is soft quitting? ›
Quiet quitting doesn't actually refer to quitting a job—it means completing one's minimum work requirements without going above and beyond or bringing work home after hours. Jeremy Salvucci. Feb 28, 2023 2:34 PM EST. Feb 16, 2023.
What percentage of people regret leaving their job? ›
A recent survey showed that 80 percent of Great Resignation quitters regret their decision. Though many people left for better work-life balance and mental health, only about half of respondents were satisfied with these things in their new roles.
Is the great people shortage coming? ›
Experts Are Talking About The Great People Shortage – Here's What You Need To Know. The Great People Shortage is coming, warn experts. A Korn Ferry report revealed that by 2030, there will be a global human talent shortage of more than 85 million people – roughly the population of Germany. Wondering why that is?
How do bosses feel when you quit? ›
Leaving a job can be an emotional experience for you and your boss. When you tell your supervisor you're quitting, you are essentially stating that you are firing him as your boss. He may feel shocked, angry, or defensive. He may have to answer to a superior about why you decided to leave.
Good people go quiet because they feel unheard, unappreciated or under-valued. It can take time for these emotions to build, but they generally start because of: Breach of Trust: Leadership integrity is an intrinsic part of the employment relationship.
Who is most likely to quit their job? ›
Great resignation statistics by job quitter demographics
- Those with a High School Diploma or less were more likely to quit their job, with 22% quitting. ...
- Those between the ages of 18-29 resigned more than any other demographic, with 37% quitting their jobs in 2021. ...
- Women are 11% more likely to quit than men.
Depending on their emotional state at the time of your conversation, your manager may become immediately upset, or even furious that you are resigning. They may feel a sense of betrayal, as well as anxiety about how they will manage the workload without you.
Are happy employees less likely to quit? ›
Happy employees improve retention
Losing an employee costs a company on average 1.5 to 2 times the employee's salary. The good news is that happy employees are less likely to leave their jobs. As happiness increases, the number of employees who leave their organization typically decreases.
How much money does a company lose when an employee quits? ›
In the US, when an employee quits, businesses spend 50 to 60 percent of the employee's annual salary to replace them, while the SHRM reports that the actual, total costs associated with individual turnovers can range from 90 to 200 percent of the employee's annual salary.
Why are people quitting their jobs 2023? ›
Almost 50 million people quit their job in the two years following the worst of the pandemic, citing pressures such as burnout, general job dissatisfaction, or child care or elder care needs. Amid a tight labor market, many were also able to find a better job, with better pay.
Is Great Resignation still happening 2023? ›
But the “great resignation,” as it came to be known, appears to be ending. The rate at which workers voluntarily quit their jobs has fallen sharply in recent months — though it edged up in May — and is only modestly above where it was before the pandemic disrupted the U.S. labor market.
Why employees quit statistics 2023? ›
59% of employees consider leaving their employment due to low salary, and 47% of employees quit to seek better pay. Salary is therefore a major factor in employee retention, and that employers should consider offering competitive salaries to keep their employees.
