The HR Services Sector Boosts Value within the Global Workplace Arena
In an article penned by Bettina Schaller, SVP Head Group Public Affairs of The our group, the impact of the pandemic on the workforce is explored, revealing a shift in priorities that has come to be known as the Great Resignation.
The pandemic has undeniably influenced hiring, with fears of virus transmission and restrictions on worker migration being significant factors. Labour markets, which have been tight for many years and show no signs of slowing, have been further affected. Over the past two years, labour force participation has fallen more than unemployment rates have risen.
As unemployment rates decrease, resignation rates are climbing to levels not seen for years. Four in five workers express a desire to hold onto the flexibility they have enjoyed over the past two years, a flexibility that has become increasingly important in the wake of the pandemic.
The Great Resignation trend is primarily driven by multiple interrelated factors. Burnout, lack of work/life balance, limited development opportunities, and a loss of meaningful human connection at work are all contributing to employees feeling disengaged or "hiddenly resigned," reducing productivity and increasing absenteeism.
Other key factors influencing this trend include demographic shifts, such as retiring Baby Boomers leaving the workforce faster than they are replaced. Skill mismatches, where employers struggle to find workers with the right qualifications, are also pushing workers to re-evaluate their job preferences. Economic pressures from inflation that constrain business budgets, leading to hiring freezes, wage stagnation, or layoffs, further create an uncertain environment for workers.
Despite high layoffs in some sectors, especially federal agencies, tech, and retail, the overall unemployment rate remains low, indicating tight labor markets where workers have more leverage to prioritize what they want in a job.
When it comes to the values workers are prioritizing in their job preferences, work/life balance is a major emphasis. Employees want to avoid constant stress and burnout caused by long hours and after-hours demands. Opportunities for development and growth are also important for engagement and career satisfaction. Human connection and a supportive workplace culture have become critical, especially after the social isolation of the pandemic. Flexibility, such as remote or hybrid work arrangements, has become a high priority given shifting expectations around where and how work should be done. Job security and meaningful work also factor into worker decisions given economic uncertainties and shifts in industry demand.
In summary, the Great Resignation reflects a workforce reevaluating their priorities driven by burnout, shifting economic and demographic factors, and a desire for jobs that provide balance, connection, and growth opportunities rather than just pay or title alone. Employers addressing these values stand a better chance of retaining talent amid ongoing labor market challenges.
Worker shortages are a current challenge in labor markets. It is estimated that 70% of the global unemployment loss during the pandemic is due to people not actively seeking new employment having lost their work. Job prospects are a consideration for many workers, who are falling back on savings until the right opportunity comes along. Two in five workers are considering moving to a more flexible job. The Covid-19 pandemic has worsened the worker shortage situation, leading to a "Great Resignation."
Security, employer values, purpose, opportunities to progress, autonomy, and flexibility are increasingly important factors for workers when deciding to respond to a job offer. A staggering 69% of employers across 43 countries report hiring difficulties. Reflection on life and priorities due to the pandemic is causing 41% of workers to consider leaving their jobs, according to Microsoft's 2021 Work Trend Index.
References:
- CNN Business
- Forbes
- Harvard Business Review
- Microsoft Work Trend Index 2021
- In the context of the Great Resignation, technology seems to play a crucial role in facilitating remote or hybrid work arrangements, which are becoming highly prized by employees for achieving a desired work-life balance.
- Amidst economic pressures caused by factors like inflation, businesses relying on traditional finance practices might experience hiring difficulties, particularly if they fail to accommodate workers' increasing preference for flexible work arrangements and other job values originally highlighted in the Harvard Business Review.
