Whether you are researching ideas to go back to working from the office or Googling skills to ready your workforce for the future, you have most likely observed the phrase “The Great Resignation of 2021” in increasing frequency in articles and throughout social media websites.
What precisely is this trend that everybody is talking about, and even more importantly how does it have an effect on your organization? In this post, we will discover what The Great Resignation is and the methods you could use to mitigate its effect on your very own Workforce through significant worker recognition and rewards platforms.
What is The Great Resignation of 2021, and why does it matter?
The Great Resignation of 2021 refers to the vast number of employees leaving their respective organizations in pursuit of other opportunities. In short, it is one of the biggest disruptions in our labor marketplace in history due to a huge worker shortage and despite this low wages.
Never before have we seen as sharp a contraction in the US economy as we have post-pandemic, hundreds of thousands, unfortunately, lost their jobs and are yet seeking work opportunities, however, organizations despite this have failed at filling up vacancies within their organizations or even retain all of their employees.
A new research from Microsoft has found out that 41% of the entire workforce have considered resigning from their jobs in 2021—in comparison to 15% voluntary resignations pre-pandemic and the actual “end rate” is 4 million humans according to some researchers.
A preference for flexibility and autonomy
During COVID-19, most of the workforce has gotten a chance to experience what working from home was like and a huge portion wants to continue the same. Most employees thoroughly enjoyed their autonomy while working from home that is why 65% of employees want to live further away from their jobs; this is despite the fact that 33% of the workforce has the opportunity to employ a hybrid work model.
More process alternatives for personnel.
The pandemic increased the rate of retirement for a surprisingly high number of employees, with 2.5 million retirements occurring within the first 15 months of the pandemic—leaving businesses with heightened worker attrition and 1.2 million fewer people over the age of fifty-five than earlier anticipated. These gaps have created a candidate-pushed process market, giving employees extra alternatives to pick out from than ever before.
Couple this with an expanded wide variety of businesses (focused within side the tech space) shifting to completely faraway or hybrid fashions after locating achievement via the pandemic, and it is no marvel that preserving or enhancing worker retention is turning into difficult. As employers loosen up their expectancies for personnel to all live at HQ, process seekers have increasingly more possibilities to discover past their backyard.
Higher requirement for Employees
Let's be honest: Many businesses nonetheless are not the best places to work at. Before the pandemic, employees had previously been OK with this—so long as they obtained a paycheck each week. However, after the pandemic when employees have had nearly a year to reflect upon what they truly want, many have concluded they do not need to waste time at an unfulfilling process and are placing their points of interest higher.
So what precisely does all of this suggest for your enterprise? It means that, without the proper lifestyle, benefits, and recognition techniques in place, you are susceptible to dropping your best talent at some point of The Great Resignation of 2021 as well—and this boom in worker attrition is probable to price you in more ways than one.
The price of hiring new talent could cost as much as 9 months of a worker's income to bring them up to speed. Employees quitting in masses can also negatively affect your lifestyle and engagement levels—now no longer to say it could burn out employees who will now need to tackle extra tasks till the job function is filled.
Exhausted, disengaged personnel is the price U.S. businesses will have to bear and it will cost much as $550 billion every year.
How employee recognition programs can help retain Employees
What are the steps that you think you can take to retain your top talent? While there are numerous methods to cope with this question, there may be one solution for lowering worker attrition which is effortlessly available for nearly every organization—and that is employee rewarding and employee recognition.
There are various reasons why employees would choose to continue working at their current organization if provided recognition.
Recognizing your employees’ efforts is an immediate demonstration that you care deeply about your employees in a holistic way—this proves to be a massive help in retaining some of your best employees. This is mainly proper while you pick out significant styles of worker recognition, like performance and recognition rewards.
With this approach, you are now no longer simply throwing cash at personnel—you are improving their lives via way of means of presenting significant recognition which they would not have in any other case. By celebrating the accomplishment of your employees, you display that your enterprise honestly cares about its workers in turn constructing a lifestyle of recognition and encouragement that makes employees want to continue working with you.
Recognition platforms fortify Manager-Worker relationships.
We're all aware of the fact that employees do not simply seek new opportunities, they also seek new managers. Employees are a lot more satisfied with their jobs when they are satisfied with their managers. When you make your managers the drivers of worker rewarding and recognition, this promotes a positive relationship between employees and their managers.
Employee Appreciation should be a social phenomenon
When we talk about recognition we need to address the fact that it needs to be a social phenomenon. While monetary bonuses seem like an excellent idea and could act as a huge incentive for employees to work harder, it fails to address the point of making it a social aspect. Talking to your colleagues about monetary bonuses can be awkward however when you have a reward and recognition platform where employees are publicly commended for their work, it acts as a huge source of motivation.
There could even be a possibility for a social feed where your fellow colleagues can see your achievements and congratulate you for the same. This model motivates other employees to join in and work harder to achieve the same praise as you. By doing this you prove to your employees that you care about them on a personal level and this helps build a connection between the employer and the employees.
It should be your primary target to avoid the Great Resignation of 2021. While there are innumerous trends that you need to look up and follow, The Great Resignation of 2021 is not one of them. With the proper Employee Recognition and rewards platform, you may enhance worker retention, profitability, and construct an organizational lifestyle that your employees can wholeheartedly enjoy and be a part of.
ABOUT THE AUTHOR: ADVANTAGE CLUB
Advantage Club is a global provider of employee benefits. The platform serves to digitize all employee demands under one canopy through numerous employee engagement programs such as incentives, rewards & recognition, flexible and tax-saving modules. It now serves over 300 organizations in 70 countries and has over 10,000 brand partnerships.