One wonders if all the hype on the “Great Resignation” has not fueled the process. The following Financial Posthaste Article (based on American data) of August the 5th indicates four points of note:
- Organization leaders are spending a larger proportion of their time dealing with employee turnover. Some quick data from the article may suggest where that time is best spent.
- Many years ago it was projected that an increasing number of employees would become self directed (freelance) contractors. This seems to be reflected in the growing numbers of people utilising this approach. Organizational recruitment should reflect this.
- Not surprisingly many people changing jobs and organizations are finding the grass is not greener on the other side which adds to my initial observation on the hype. The majority of time, ensuring at least equal focus on the employees you have generates greater return than total focus on recruitment.
- Personal development trump’s salary (within reason) as a key reason people will stay with an organization. People want to know the organization they are working with cares about their development and future.
Key results from the survey:
• Healthcare benefits are not competitive (42%)
• PTO and vacation days are too difficult to accumulate (42%)
• 401k benefits are not competitive (39%)
• Lack of a continuing education benefit to support employees’ professional growth (35%)
It is important to ensure organizations are attuned to changing trends in the employee marketplace to ensure understanding however data continues to reflect the benefits of treating people well as individuals and as valued members of your team.
Is the ‘Great Resignation’ over?
Not according to the findings of this survey from California-based business technology firm Kantata.
The study interviewed 1,502 full-time employees and independent contractors in the professional services industry in June.
Forty-three per cent of the full-time employees said they were considering quitting their jobs to become freelancers. The percentage is even larger among younger workers. More than half (52 per cent) of millennial and gen Z employees were considering leaving their jobs to become independent contractors.
Three-quarters of the independent contractors surveyed had been full-time employees last year.
“The findings confirm that the Great Resignation is not just a trend, but a radical and permanent transformation of global workforces,” said Kantata.
It’s also a headache for management.
More than half of the business leaders in the survey (53 per cent) said they were having trouble hiring full-time employees. In fact, the senior executives said they were spending 40 per cent of their day dealing with employee turnover.
Of the reasons identified for the high-turnover, compensation was unexpectedly low on the list. Continuing education towards professional growth ranked more highly.
Above three-quarters (76 per cent) of freelancers stated that they want to work with businesses that provide financial support for their professional growth. This includes paying for certificates, continuing education and masterclasses.
The vast majority of full-time employees agree: 92 per cent said they would be more loyal to corporations that invest in their professional development.
Earlier this year, U.S. academic, Anthony Klotz, who coined the phrase “Great Resignation”, said he thinks resignation rates could stay above average for two or three years as employees adjust to the new ways to working that have emerged from the pandemic.
But those who do leave may not find the new pastures so green.
A survey of 15,000 U.S. workers by Joblist, an artificial intelligence job-search platform, found that more than a quarter of those who left work this year were reconsidering whether they made the right move, Bloomberg reported.
Among those who had found a new job after quitting 42 per cent said that it hadn’t lived up to their expectations.