Over the last 3 years, American businesses have had to deal with a massive wave of resignations. Resignation cases used to make up a very small percentage of the workforce attrition numbers in the USA, with people generally opting to keep their jobs for stability and security, even if they felt like they were getting a poor deal or suffering in their life as a whole because of their jobs. Part of the reason for this willingness to go through thick and thin for their employer stems from the inadequacy of the American welfare state. Jobs often provide their employees with health insurance. Healthcare is not free in the USA, and the country lacks the welfare infrastructure and political will to offer taxpayer-funded healthcare for all its citizens.
Americans have also historically bought a great many of their houses, cars and furnishings using finance or credit arrangements, meaning that any break in employment can lead to an unstoppable spiral of debt. These issues still exist in America, so why have so many people chosen to leave their jobs before their contracts are up? Here are a few facts that might help to give some clarity on the issue.
Young, Low Earning Employees are Most Likely to Quit
Employees looking to retain the millennial generation of entry-level employees should be rightfully shocked to find out that these people are the most likely to quit. Young people working for little pay recognize that their wages have not increased in line with inflation. Many of them feel let down by the people in power, including their employees. The groundwork for this distrust and disappointment was laid far earlier than the current wave of resignations during the 2008 financial crisis.
The Great Resignation is Not Truly Global
The United States, United Kingdom, China, and continental European countries have all experienced the impacts of the great resignation, but this does not mean that the trend is completely global. Canada and South Asian countries, however, have not seen massive resignations in the post-Covid world. The problem may, therefore, have something to do with working conditions and the employee experience in general in countries with unsupported workforces.
The Great Resignation Outstrips Previous Crises
115 percent more employees quit during 2021 than in 2011. Covid and rampant inflation have been blamed by many business leaders. Leaders should, however, have a long, hard look at the holistic reasons why entry-level employment is less stable than it was in the past. 2021 has seen the highest levels of resignation in recorded history.
The Great Resignation is Showing Signs of Ending
Statistics show that the huge crisis of 2021 is showing signs of abating. Although people are still quitting in very high numbers, employers have made several changes that are helping them retain their workforces for longer. Increases in pay, benefits, and overall experience are convincing workers that they have a future in their jobs, rather than a grim and stressful rocky road.