Changing Jobs – The Great Resignation
The Great Resignation – the phenomenon that began in early 2021 – has seen higher-than-expected numbers of employees voluntarily leaving their jobs across the world. This was first noted in the US, when a record four million people quit their jobs in April 2021 – and is an ongoing economic trend. There has been great debate in the media in recent months over whether the trend is indeed over, or remains on going.
Our salary survey for 2022, conducted in the autumn of 2022, gave credence to this trend. We found that almost half (44%) of employers had seen an increase in employees leaving in the previous 12 months, which mirrored the appetite for employees seeking to move (54%).
What is driving the great resignation?
According to surveys conducted by the Pew Research Center, the reasons people cited for leaving were low pay, feeling stuck and ‘disrespect’. This matches our own results from our salary survey for the South as Richard Dibden, CMA Commercial Director explains: “There is consensus between employer and employee that better pay and progression prospects are two important retention tools.”
While salary remains the top draw when seeking a new opportunity, candidates are also looking closely at how companies support their employees’ wellbeing, while analysing the workplace culture and career development opportunities.
What do we know?
- High competition for talent continues
- Salary is important for candidates, but so is flexibility and culture
- Hybrid working is still important for candidates and remains a top three requirement
- Employees want clear career paths and development opportunities
- Employee attraction is about more than remuneration and benefits
However, we have seen a disconnect with regards to other factors, with employee flexibility needing greater employer consideration. This is particularly obvious with regard to a thirst for home-working and hybrid working flexibility from employees – which is contrasted with an on-going concern from employers about the negative impact of remote working on communication and team relationship.
Office based vs remote roles
A snapshot of current vacancies across our Accounting and Finance and HR divisions (July 2023) shows 66% of roles will offer hybrid working and only 7% are fully remote. This drops significantly for transactional finance roles with only 39% offering a hybrid working pattern.
Our data suggests hybrid working remains one of the top three factors for employees looking for a new opportunity. Based on this data and evidence we’ve seen so far in 2023, employers with 100% office-based teams could face potential challenges attracting talent, with this directly impacting candidate availability, engagement, and retention.
How to counter the great resignation
So, what can employers do to retain their employees amid this economic trend? Employee retention in a competitive market begins with company culture. Now is the time to do a deep dive into your organisation’s culture and review practices. Is it collaborative, transparent and supportive? Check what your competitors are offering and explore their reputations.
As you can see from our salary survey, remuneration is important to candidates. Review your pay scale, ensure what you are offering is competitive and in-line with industry standards. (Our salary survey can help you with these benchmarks). Hire carefully and with intention – prioritising those candidates who really share your organisation’s values.
Employers can also explore ways to offer more flexibility, perks and benefits to employees – as well as being sure to examine the current offering for training and development opportunities. All of these practical ways will improve retention whilst also making an organisation more appealing to candidates in today’s competitive marketplace.