The Great Resignation and Its Aftereffects in the Corporate World

Striking amidst global uncertainty from 2021 to 2023, the Great Resignation is unmistakably one of the most historic events in the corporate world. While the phenomenon is said to have finally concluded in 2023 as the rate of people quitting their jobs has returned to pre-pandemic levels, businesses continue to face the repercussions in its aftermath. From how businesses recruit and manage employees to putting greater emphasis on work-life balance, the Great Resignation influenced major changes in many workplaces worldwide. 

To learn more about the Great Resignation and its aftereffects, make sure to read this article to the end for the full discussion. 

What Is the Great Resignation?

The Great Resignation, also referred to as Big Quit and the Great Reshuffle, is an economic phenomenon that manifested in 2021 and went on until early 2023. The phrase “The Great Resignation" was coined by Anthony Klotz, a professor of business administration at Texas A&M University. Fundamentally, the phenomenon is characterized by a significant number of people voluntarily quitting their jobs. 

Although the Great Resignation was taken as a global concern, certain countries were the most impacted, including the United States. In the month of November 2021, the U.S. Department of Labor reported 4.5 million voluntary job resignations. This is by far the highest number ever recorded by the Department since the year 2000. 

Why Did People Quit During the Great Resignation?

As workers transition to a remote setup during the pandemic, many assume that the working conditions have improved and become favorable for many employees. However, this assumption is clearly opposed by the Great Resignation. 

At this point, you may be curious about the underlying causes and factors driving this mass resignation movement in recent years. According to a 2022 report by the Pew Research Center, here are the top reasons why:

1. Pay was too low 
2. No opportunities for advancement 
3. Felt disrespected at work 
4. Because of childcare issues 
5. Not enough flexibility to choose when to put in hours 
6. Benefits weren’t good 
7. Wanted to relocate to a different area 
8. Working too many hours 
9. Employees required a COVID-19 vaccine

The Aftereffects of the Great Resignation 

The disruptions caused by the Great Resignation didn’t end when the number of people quitting their jobs decreased. Its effects remain in the corporate world, and businesses worldwide are experiencing them in 2023 and possibly for the years to come. Below, we list and discuss these effects one by one. 

1. More People Favoring Remote Work Options

A Forbes report highlights that a remarkable 98% of employees express their preference to work remotely, even if it's only on occasion. With talent shortages and a highly competitive labor market following the Great Depression, it is not surprising that companies pay more attention to the preferences of modern-day workers. By providing employees with the perks they desire and need, such as remote work options, companies not only attract the majority of applicants but also retain workers. 

2. The Great Retraining 

The Great Resignation has led to the Great Retraining. The Great Retraining also referred to as "upskilling", is all about learning additional skills. In business, retraining is an essential approach not just in improving work results and adapting to changing market demands but also in increasing recruitment and retention rates.  

Cengage's 2023 report found that the availability of upskilling opportunities plays a pivotal role in both acquiring and retaining employees. The report shows that 66% of respondents said access to employer-paid online training and upskilling opportunities was important in accepting jobs, and an overwhelming 89% expressed their intention to take advantage of such opportunities. Another study suggests that the majority, 62% in particular, of workers say more learning and training opportunities are keys to making them more motivated at work.

3. Change in the Employee Expectations 

With the pandemic and the Great Resignation happening at the same time, employee expectations for the workplace have shifted dramatically. Employees now place greater emphasis not only on compensation but also on well-being, work-life balance, career growth, and corporate culture. Additionally, they put greater value on flexibility, with  63% of employees saying flexibility would make them feel more empowered, according to a study.

4. Greater Emphasis on Life-Work Integration

Life-work integration is a process of blending both personal and professional responsibilities or activities instead of separating them. By adhering to this, workers can effectively manage their work schedule and personal obligations, resulting in increased productivity and overall satisfaction in both aspects.

At present, life-work integration has become one of the most crucial factors in the decisions of workers to quit or apply for a job. As a matter of fact, the majority of applicants, 66% of females and 56% of males want greater life-work integration and jobs that enhance their well-being. 

5. Preference for Companies that Offer Better Compensation

As per a Pew Research Center report, most of the employees who quit their jobs in 2021 said low pay was their main reason to quit. While the majority of workers favor work-life balance in today’s corporate world over higher pay, employees continue to seek opportunities that offer hiring bonuses and higher pay rather than staying in the same position for less. Besides better compensation for efforts, the demand for better salaries can also be linked to the economic uncertainty that many countries all over the world are facing today. 

Streamline Your Workflow to Prevent Resignations

Apart from the reasons why workers quit listed above, burnout is another undermined precursor to resignation. While there are many ways to prevent burnout, such as offering breaks or time off or encouraging physical activities, these ways may not offer a long-term solution. If you want a long-term solution to burnout, it can be worthwhile to reevaluate your processes and create a more efficient workflow with a business management tool like StaffConnect. 

StaffConnect is a business management software designed to help businesses manage their processes more effectively by streamlining processes and automating routine tasks. It helps boost productivity, lessen pressure, save time and costs, and improve employee management. Some of its practical features are GPS Check-In and Out, Calendar Integration, Custom Mobile Branding, Push Notifications, SMS, and Payroll.

Not sure if StaffConnect is the right business management platform for your company? We've got you. Feel free to book a demo here and test drive StaffConnect at no cost.