“THE GREAT RESIGNATION”

What May Be Happening

I recently had the opportunity to speak to a few friends who are still in the job market.  Contrary to what I had heard and read about, these people were struggling to find jobs.  We keep hearing about huge numbers of workers quitting their jobs with the implication that few want to work now.   But was that really true?  Are people getting lazy or is something else going on?

It’s always a great day to me when I learn something that upsets a notion I have; how else do you learn?  So, with these conflicting messages in mind, I did some digging. 

Early Covid Quits

It was true that during 2020, a lot of people retired.  The increase in retirements were considered “excess” in that they involved people who under normal circumstances, would not have stopped working this early.  The number amounted to 2.4MM. As these generally represented older workers, it is likely that feeling more at risk from the virus, many might have chosen to end their working years to protect their health.

Health care workers also left their jobs in droves, possibly due to the stress and increased demands of their jobs.

Despite what might have looked like economic disaster for all, many saw the value of their homes increase and with fewer opportunities to spend money, many were able to increase their savings.  Along with stimulus checks and expanded unemployment benefits, others found they could be a bit pickier about where and how they worked.  Some used this as a sabbatical opportunity, always planning to go back at a later date.  Working from home, a strange concept at first, became more attractive to many.  If you loved avoiding a horrible commute along with the time wasted, you might resist a demand to return to your office.

What’s Happening Now

Retirements continue apace, as the last years of the Baby Boom get tired of the changing face of the workplace.  Where we once were left to our own thoughts and beliefs, the strident and intrusive political demands can impact the joy you find in your job, even if you basically agree with the message.  Changes in office design have eliminated privacy and many of us simply do better if we can work without constant mental and physical intrusion.

Additionally, there is a huge increase in numbers of the self-employed.  Applications for federal tax ID numbers, a requirement for an LLC or S-Corp, increased 56%+ in 2021.   The Wall Street Journal noted that most of these new companies won’t hire anyone, much like my Kalm Kreative, Inc.  In addition, you can start up a business at any time as a sole proprietorship, which means the above numbers under-report the size of the increase in self-employment.  The “Great Resignation” might better be seen as

 “The Great Entrepreneurship Revolution.”

Able to make choices in where and how to work, many people have used the pandemic as a chance to reassess their careers, which is great.  Studies have always shown that productivity increases with job satisfaction.  Large organizations, for too many years in the driver’s seat with regards to employment, may find themselves scrambling to attract new hires. 

A New World

As a coach who works a lot with job seekers, this transformation is a great thing.  For too long, the hiring process has left applicants scrambling to navigate the computer systems that process resumes and applications.  They’ve struggled with employers who “ghost” them, leaving them wondering if there are simply delays in the process or if they’ve been rejected.  Salary negotiations are treacherous for aspiring workers.

As more people seek to define their ideal work situation, and the number of openings increase, companies will be forced to adapt and will have to make the work experience (and the hiring practices) more pleasant and responsive.  This is all good.  In the IT world, the demand for trained workers is only increasing.  By 2030, there will be more than 667,000 new jobs.  And the pay is only going up.

Even the lower end jobs are changing.  I recently dined out at a restaurant where the 20% tip was included in the bill; it wasn’t optional.  Pay and work rules can only improve to attract the smaller pool of workers.  But the bottom line is people are getting back to work.  They’re simply demanding change, and are in a position to get it.