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IT'S NOT THE GREAT RESIGNATION; IT'S THE GREAT REALIGNMENT

"The Great Resignation is really a Great Re-Evaluation. What people are resigning from is a culture of burnout and a broken definition of success. In quitting their jobs, people are affirming their longing for a different way of working and living." - Arianna Huffington
 
"The Great Resignation" was a term coined in 2021 to describe the record-high number of U.S. workers who resigned since 2020.
 
While the statistics supports this claim, my take on it is different.
 
I prefer to call it "The Great Realignment".
 
I believe what actually happened was an opportunity for both employers and employees to realign - to really take a hard at their values, what they were always dissatisfied with about their jobs, and find an employment situation that works best for them.
 
The job satisfaction issues were always there, long before the pandemic. But the pandemic gave them the opportunity and the motivation to make a change.
 
RESIGNATION STATISTICS
It's true there were massive resignations in 2020 and 2021 for a myriad of reasons; taking sabbaticals, early retirement, or leaving the workplace to care for children and family members. Since April of 2021, nearly 33 million people have left their positions: that's over a fifth of the total U.S. workforce.
 
But droves of workers around the globe weren't necessarily leaving the workforce and staying home. They were shifting their focus into a job that better suits their lifestyle.
 
Here are a few findings from Anthony Klotz, an associate professor of management at Texas A&M University, who was the one who coined the term 'Great Resignation':
  • People are finding jobs that give them the right pay, benefits, and work arrangements in the longer term
  • Rather than leave the workforce altogether, workers are moving around the job market
  • For possible the first time in history, works have agency: they are making deliberate choices as to where their careers are going
  • These are "pandemic epiphanies" - the ability for workers to fit their jobs into their lives, rather than having lives that squeeze into their jobs
 
THE IMPACT OF STRESS
According to Liz Fosslien, an expert on emotions at work and head of content at Humu, stress and burnout are the main reasons why people leave their jobs.
 
In a 2020 survey:
  • 71% of employees experienced burnout at least once
  • 62% admit to feeling overwhelmed by work responsibilities
  • 32% say they are emotionally drained
 
INDUSTRIES MOST AFFECTED
While workers are shifting across the board, certain fields seem to be affected more than others.
 
  • HEALTHCARE -From March of 2020 until November of 2021, 1 in 5 U.S. healthcare workers quit their jobs. Many say they felt burned out during the COVID-19 pandemic, and some even say they were traumatized by what they witnessed in hospitals
  • FOOD SERVICE -Foodservice workers have the highest resignation rates. This started when many restaurants closed in the early days of the pandemic and continued as customers were hesitant to dine in once they reopened
  • RETAIL - The retail industry is also strained, with the second highest quit rates after the foodservice industry. Many restaurants and retail workers say they grew weary of the low pay and health risks associated with their jobs
 
EMPLOYEES WANT FLEXIBILITY
When many employees were sent to work from home in March of 2020, they realized it was a lifestyle switch they preferred. 20% of workers say the pandemic caused them to change the kind of role they were seeking to one that permitted remote work. Because so many remote work opportunities opened up, new roles are not available to workers who were previously unqualified due to geography.
 
Many workers are switching to jobs in the high-demand sectors that are more likely to provide hybrid work. According to LinkedIn, from August to October 2021, workers moving to software and IT services more than doubled year over year.
 
IT'S NOT ABOUT THE MONEY
While much attention in the media is paid to employee dissatisfaction with wages, compensation actually ranks 16th when predicting employee turnover.
 
Instead, the largest predictor of employee resignations was a toxic work culture. The other top reasons for resignation are job insecurity, high levels of innovation, failure to recognize performance, and a poor response to COVID-19.
 
EMPLOYERS REACTIONS
Workers are looking for flexibility that their current jobs can't offer. According to ZipRecruiter, 54% of workers surveyed said they preferred a job that let them work from home option. That's up from 3% before the pandemic, but the figures show that while a flexible work environment is in demand, employers are not always delivering.
 
Employees are choosing the work conditions they prefer. Employers should do the same.
 
Now is the time for employers to figure out who they are, what they need, and who they want to serve. They have a huge opportunity to align their people with their values, and be selective about the customer, clients, vendors, and other organizations they choose to do business with.


INDEX
  • WHEN SHOULD I HIRE A COO?
  • HOW TO EXIT YOUR BUSINESS WHEN YOU DON'T HAVE A BUYER
  • WHEN SHOULD I HIRE A CHIEF FINANCIAL OFFICER?
  • IT'S NOT THE GREAT RESIGNATION; IT'S THE GREAT REALIGNMENT
  • WHEN SHOULD I HIRE AN HR MANAGER?
  • WHY YOUR BUSINESS NEEDS A PRICING STRATEGY
  • THE 4 Cs OF EVERY SUCCESSFUL BUSINESS
  • WHAT IS A CEPA ADVISOR AND HOW CAN ONE BENEFIT YOUR BUSINESS?
  • THE FALLOUT ON CULTURE WHEN YOU DON'T HIRE A PLAYERS
  • THE ROLES OF SALES IN YOUR SMALL BUSINESS
  • FINDING THE PERFECT GIFT FOR THE ENTREPRENEUR IN YOUR LIFE
  • THE BENEFITS OF OWNING A SMALL BUSINESS
  • WORKFORCE IN MOTION
  • GOAL SETTING FOR 2022: WHAT TO DO NOW TO BE SUCCESSFUL NEXT YEAR
  • LESSONS LEARNED AFTER PUBLISHING MY FIRST BOOK
  • WHY YOUR BUSINESS NEEDS INNOVATION
  • THE COVID-INSPIRED SPIKE IN ENTREPRENEURIALISM
  • THE PROS AND CONS OF OUTSOURCING YOUR FINANCE AND ACCOUNTING SERVICE
  • HOW TO SET GOALS IN 2021
  • THE LEADERSHIP EVOLUTION OF YOUR BUSINESS
  • HOW TO GET THE MOST OUT OF YOUR ADVISORY BOARD
  • THE PANDEMIC-INDUCED INNOVATION OF MEETINGS
  • HOW TO USE THE 8 P'S OF MARKETING TO GROW YOUR BUSINESS
  • BEST PRACTICES FOR COLLEGE FINANCING
  • SCALING A BUSINESS - ARE YOU READY?
  • THE HALFWAY POINT: IT'S TIME TO REVISIT THOSE BUSINESS GOALS
  • GROWTH WITH PURPOSE: SUCCESSION PLANNING
  • GROWTH WITH PURPOSE: EVOLUTION OF FAMILY LIFE
  • GROWTH WITH PURPOSE: FINANCIAL RISK
  • GROWTH WITH PURPOSE: INTEGRATION
  • GROWTH WITH PURPOSE: WHY ARE YOU GROWING YOUR COMPANY?
  • GOAL SETTING 2020: HOW TO KEEP YOUR GOALS FRONT AND CENTER ALL YEAR LONG
  • ASK GERBER: HOW TO STAY LASER FOCUSED DURING THE HOLIDAYS
  • Ask Gerber: How to Identify Your Business's Culture When You Don't Think You Have One
  • Ask Gerber: When Should I Hire a Professional Manager?
  • Ask Gerber: Should You Mix Business with Friendship?
  • ASK GERBER: HOW DO I ESCAPE THE ENTREPRENEURIAL SLUMP OF FEELING TRAPPED IN MY BUSINESS?
  • ASK GERBER: HOW CAN ENTREPRENEURS CREATE SHARED EXPERIENCES WITH THEIR CHILDREN?
  • Ask Gerber: How Can I Recognize Permanent Failure as an Entrepreneur?
  • Ask Gerber: How Can I Recognize and Overcome Temporary Failures?
  • ASK GERBER: HOW DO I HELP EASE EMPLOYEE STRESS DURING BUSY SEASON?
  • ASK GERBER: DO I NEED TO HIRE HR?
  • ASK GERBER : DO I NEED A CEO?
  • ASK GERBER: DO I NEED TO HIRE A COO?
  • ASK GERBER: DO I NEED TO HIRE A CMO?
  • ASK GERBER: DO I NEED TO HIRE A CFO?
  • ASK GERBER: HOW DO I KEEP PASSION AND PROFITS TOP OF MIND IN MY BUSINESS?
  • ASK GERBER: WHY DO I NEED TO INVEST IN HOSTING AN ANNUAL RETREAT FOR MY TEAM?
  • ASK GERBER: HOW CAN I ENGAGE WITH MY CLIENTS/PROSPECTS WITHOUT BREAKING THE BANK?
  • ASK GERBER: WHAT IS A CLIENT SERVICE MATRIX? PART DEUX
  • ASK GERBER: WHAT IS A CLIENT SERVICE MATRIX? PART ONE
  • ASK GERBER: THE HIRING PROCESS. WHY IS IT SO DAMN HARD?
  • ASK GERBER: WHY IT'S IMPORTANT TO KNOW AND GROW YOUR COMPANY CULTURE
  • ASK GERBER: HOW DO I ACHIEVE THE WORK/LIFE BALANCE AS A BUSY ENTREPRENEUR?
  • ASK GERBER: HOW DO I PREPARE MY FRIENDS FOR LIFE AS AN ENTREPRENEUR?
  • ASK GERBER: FIRST GENERATION ENTREPRENEURS AND BUSINESS EXECUTIVES, HOW ARE THEY DIFFERENT?
  • ASK GERBER: I PUT SO MUCH OF MYSELF INTO MY BUSINESS THAT I WORRY I AM FALLING SHORT AS A SPOUSE AND PARENT. WHAT CAN I DO?
  • ASK GERBER: ARE CHILDREN OF FIRST-GENERATION ENTREPRENEURS MORE LIKELY TO BE SPOILED?
  • ASK GERBER: WHAT'S YOUR STANCE ON REMOTE ACCESS FOR EMPLOYEES?
  • ASK GERBER: WHEN DO I NEED TO HIRE AN ADMINISTRATIVE ASSISTANT?
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