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Great Resignation of 2021 - Coggle Diagram
Great Resignation of 2021
Background
Covid-19 spurred on the Great Resignation of 2021, during which record numbers of employees voluntarily quit their jobs.
5 factors, exacerbated by the pandemic, have combined to yield the changes that we’re living through in today’s labor market.
Retirement
Workers left their jobs at younger ages. In order to spend more time with loved ones and to focus on priorities beyond work
Significant older cohort also left because of their greater susceptibility to serious Covid health risks.
Relocation
Relocation has not played a material part in the Great Resignation
The overall movement rate in 2021 was the lowest on record for more than 70 years. Covid has not reversed that trend.
Moving within one’s county of residence has remained the most frequent from of relocation, moving to different state has remained the least frequent.
Reconsideration
People reconsider the role of work in their lives
In white-collar industries, people who were burning out in demanding jobs might consider quitting their job, as it intruded on their ability to care for their families.
Women have been affected more than men
2021, a Workplace report found that one in three women are considering leaving the workforce, switching jobs, or cutting work hours. This is often a forced choice — many women have no option other than leaving to meet caregiving obligations.
Reshuffling
Higher quit rates in lower-wage industries
Professional and business services also registered a high quit rate and considerable growth in that rate
Definition: moving among different jobs in the same sector, or even between sectors
Business solutions:
1) increased hourly wages for current employees
2) improved benefits packages (including emergency childcare, paid time off, and tuition reimbursement)
To attract workers but improve retention
Reluctance
Fear of contracting Covid in the workplace has made many workers reluctant to return to the office
Solution: Hybrid-work option
Problem for buisnesses
Business leaders across sectors and industries that have the vision and resources to offer flexibility to their employees are the most likely to maintain a stable and competitive workforce
attract and retain talent will be those offering benefits that address the changing needs of workers
Improve their employees long-term career prospects by offering training and tuition reimbursements will garner greater loyalty