The phrase “The Great Resignation was coined by Texas A&M University Professor Anthony C. Klotz coined back in 2020. Now this term is widely used to describe the challenges many businesses, both small and large face with the max exodus of employees. Some experts have anecdotally, opined employees chose to stay home and collect stimulus covid-19 panademic cheques. However, recent surveys, suggest the real reasons, is because many people have decided to make a major shift in their life and focus on what matters most to them during the pandemic. Some of these reasons for quitting their jobs include: family, children education, and work-life balance. In other words, most people decided to leave their old jobs and look for new jobs that align with their new identity and life goals.
In a recent blog Sophia Lee at Blue Board lays out some of the reasons why so many employees have decided to quit their jobs.
1. Employee burnout rates are through the roof.
Employee burnout is a long-term reaction to stress that usually comes with mental, emotional, and physical side effects. While 42% of employees were already experiencing burnout before the pandemic, that number skyrocketed to 72% a few months into lockdown—largely due to increased anxiety, heavier workloads, and people taking less time off.
But many employers still aren’t addressing employee burnout in their retention strategies. One in five workers believes their employer doesn’t care about their work-life balance. And they’ve had enough. They’re quitting in droves, looking for companies that care about their wellbeing. Others are staying put—but at a cost to organizations. The lost productivity of an actively disengaged employee is equal to 18% of their annual salary. This means a company of 10,000 employees with an average salary of $50,000 each will lose $60.3 million a year due to employee burnout.
2. Companies aren’t providing the flexibility employees need.
When COVID-19 sent so many people home, employees realized how powerful (and possible) it is to be able to decide where, how, and when they work. Which is why nine in ten employees continue to demand flexibility from their jobs.
Too many organizations have dismissed this shift, and expect people to quietly return to the office. But this will likely result in significant turnover, as 54% of employees are considering leaving their job in this new normal if they’re not afforded some form of flexibility in where and when they work.
3. Manager training continues to fall short.
Managers have the most influence on an employee’s job satisfaction, wellbeing, and likelihood to stay at a company. In fact, 57% of employees have left at least one company because of their boss. But being a manager isn’t intuitive. It requires an entirely different set of skills than being an individual contributor, which is why training programs are essential.
In these uncertain times, managers are playing an especially critical role in supporting their employees. Or, at least, they should be. But due to a lack of effective training, many managers aren’t giving employees what they need, causing them to burn out and look for new jobs.
Managers themselves are frustrated by the lack of support from their employers. They’ve been asked to take on significantly more responsibility without being given additional tools, resources, or guidance. The employee retention numbers reflect the frustration: as of December 2020, the resignation rate for managers was nearly 12% higher than the previous year.
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