“The Great Resignation” Is a Complex Situation Born of a Pandemic, Remote Work, and Changing Social Outlooks. These Days, Employers Must Leverage Unique Talent Acquisition Strategies While Prioritizing Retention-Focused Efforts.
Contrary to the expectations of business leaders and economic pundits, 2022 was not a year of economic stability. In January, Fortune Magazine reported that a record 4.5 million Americans had already quit their jobs. This unusual situation, dubbed “The Great Resignation”, saw rapid inflation and a radical shift in workplace dynamics.
As a matter of course, organizations must leverage everything from direct hiring to agency sourcing in order to evolve. Businesses are striving for a return to normalcy at a time when inflation and resignation rates are the highest in a generation. Accordingly, the war over talent has accelerated. This developing and multi-faceted dynamic will trigger even more disruption in the near term. A greater focus on workforce trends could help employers navigate the situation more efficiently.
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As COVID-19 lingers, Americans have developed a preference for remote work. At the same time, wage cuts and compensation management have caused wages to lag behind inflation. These factors have prompted a surge in resignations, as employees look for competitive compensation packages elsewhere.
Offering fair and equitable pay could be a deciding factor in this new environment. Holistic benefit packages are often instrumental in successful hiring, but they may well become the deciding factor as remote work, office space, collaboration, and employer branding lose relevance. Amid rising inflation, workers are demanding that their compensation and benefits increase proportionately. Otherwise, they’re likely to walk away.
While offering a fairer compensation plan is a huge asset to any talent acquisition strategy, employers can still expect to remain in a battle with the competition. For now, businesses may need to embrace the evolution to hybrid and remote work and adapt to the new and continual challenges unique to their workforce. That includes managing the lower payroll expenses and broader talent pools that come with remote work. Above all, firms need to become creative in their hiring strategies, including leverage of wide network of talent afforded by partnership with a staffing firm.