This blog was supposed to be the final one in the Employee Life Cycle series, but when I started writing it, I realized it couldn’t be – there’s too much content in this phase to cover in one blog. So, I’m splitting this section into three separate blogs. The first of this set will cover employee resignations; the second will discuss retirement, and the third addresses removing employees.
Resignation
We now live in a time known as “The Great Resignation” because so many people have voluntarily quit their jobs over the last several months – I am one of them. The reasons for this vast employee exodus signal how the pandemic impacted people’s lives and caused them to re-evaluate what they value. From my observation, here are a few of the key reasons people have decided to exit organizations:
Lack of work/life balance
There’s a common misconception that remote workers are less productive and work fewer hours than their office-attending comrades. Sadly, this is the opposite of the truth.
Due to the pandemic, many companies allowed remote working when they never supported it or believed it could work before. But once people got the taste of it, they liked it; however, maybe they liked it a little too much.
For me, having been a remote worker long before COVID, it wasn’t a big deal. But to some people, it was hard to separate personal and work life. People who would previously work balanced hours suddenly became glued to their desks, unable to break away from all the digital noise and distractions coming from their company.
People need to step away from work and enjoy their lives sometimes. Organizations that haven’t been paying attention to their employees are now (somehow) shocked when people say they’re working more from home, not less, and they’re sick of it. Some countries even have laws prohibiting employees from sending or receiving emails over the weekend. If only the USA adopted this law…
No appreciation
You can do the best job in the world, but if no one ever says “thank you,” then why bother? Expressing thanks is easy to do, and the only effort it requires is your words, so why not do it? When employees consistently give it 110%, but they’re never appreciated, why would you expect them to continue working for your company? I know that people will only tolerate being treated this way for so long, and eventually, they will quit.
Solitude and loneliness
It can be lonely if you are stuck working at home all day and don’t have any work friends with whom you can casually chat or ask questions. Building relationships needs to be intentional, not accidental, and it doesn’t happen overnight. Companies that recognize and foster personal and professional relationships among their staff are far more likely to retain them. If you feel like you’re just another number to your organization, rather than a person who has emotional needs, you’re not going to stick around long.
Being overlooked for promotion
Lack of promotion is a theme I see cited repeatedly in articles addressing the Great Resignation. Many people have felt overlooked during the pandemic and believe their careers have stagnated. I attribute part of this to being remote, which turns into the old cliché “out of sight, out of mind.” If you’re not physically present, it’s easy for others to forget you even exist. The nice thing (for employers) about promotions is that they don’t necessarily require a pay increase. Strangely, my experience has been that most of the time, pay raises are based on an annual allowance to help match inflation rather than being based on merit. So, you can give someone a new job title and a few more responsibilities without having to increase their salaries dramatically. It’s easy to do, and although it may be a token gesture, people still appreciate having a title commensurate with their skills and experience.
Inflationary pressure
Compared to a year or two ago, the good old American dollar doesn’t stretch as far as it used to. Inflation is causing the price of goods, including volatile categories like food and fuel, to increase at historic levels. Home prices have gone through the roof, too, and wages will probably need to follow suit. Rising prices is unfortunate because it creates a trap that is hard to escape. But when a family has to reduce their discretionary spending dramatically to afford a 7% weekly increase in food costs and double the gas prices from a year ago, it will have an impact. The first thing that pops into most people’s heads is: “I need to make more money.” While presumably one could go to their employer and ask for a raise, they’re probably going to hear “pound sand,” so the usual alternative to better wages is to jump ship and join another company. Employers should be compassionate and aware of the pressures families face right now and take whatever action they can to help. One example is something my company did. They decided to make more significant contributions toward our healthcare costs, so the employees didn’t have to bear the brunt of the continued increases.
Employees know that it’s an employee’s job market
It’s no secret that it’s an employee’s job market right now. There are exceedingly more jobs than people to fill them, and somehow, I don’t think this will change anytime soon. What this means is that employees have choices – lots of them. If you’re not doing everything in your power to incentivize your people to stay with your organization, someone else will. Companies are getting creative, too, and listening to what people care about, and [duh?!] they’re giving it to them. Want a sign-on bonus? Sure thing! How about flexible working hours? Absolutely! Could you use an adjustable desk at home? Get one! I think you get the point. It’s up to employers to pay attention to their employees and give them not only what they need, but sometimes also what they want. Otherwise, they know they can find another company that will.
Inability to have a flexible schedule
With COVID, so many things changed for everyone in the world, but especially for working families with young or school-aged children. The classic “8-5” routine won’t fit into our lives anymore – not with the lack of consistent, available daycare, COVID cancellations, and not to mention those who contract the disease. Given the constraints and demands of our personal lives, our professional lives now need to flex to accommodate, or employees will leave in favor of companies that understand that families are important and come first. If a young mother needs to leave early to pick up her kids, she can make up her time answering emails after kids go to bed. If someone has an ill parent or grandparent, they might need to work in short spurts. Allow people to keep the schedules that fit their lives instead of trying to force an imposed one upon them.
Employers demanding people return to the office
Once the remote-working genie jumped out of the bottle, it became impossible to put back in. Initial skepticism of remote work is past us, and people now see it as a requirement of their employment, not an option. Forcing people to return to offices is a no-go, especially in metro areas with horrible traffic and long commutes. Rather than go back to wasting a ton of time transporting oneself, remote employees can be as productive (or even more so) as their in-person counterparts. Companies that try forcing “return to office” plans will soon find their office empty, as employees leave to join employers who will allow them to work from anywhere.
Opportunity to earn more money elsewhere
Last but not least is the ability to make more money somewhere else. Inflationary pressure aside, sometimes leaving is the only plausible way of making significant strides forward in terms of income. If you stay at one company, you’re only likely to get the slight average annual salary increase that could be anywhere from 1-4% (or less, if any). I understand that the grass isn’t always greener on the other side, but sometimes it is – quite literally. If employers were paying any attention to annual salary surveys conducted by reputable professional organizations and employment firms, they would quickly recognize when their employees were paid under market value and adjust their wages accordingly. People have access to the same information, and they’re not stupid. If they know their role generally pays within a specific range, but your company is nowhere near that, they’ll jump ship in an instant.
Final Thoughts
Deciding to leave an employer is usually an easy (albeit scary) choice. When employers don’t listen to the wants and needs of their staff, they won’t keep them for long. People deserve to be treated well, like human beings who deserve respect and fair pay. Accommodations like promotions and flexibility are inexpensive but create tremendous goodwill and loyalty. So, if you want to continue receiving resignation letters, ignore these suggestions at your peril. On the other hand, if you’re going to keep people from quitting en masse, create a safe working environment, whether virtual or in the office, and pay attention to how people feel.
If you missed the other blogs in my Employee Life Cycle series, please check them out:
- How to Understand the Employee Life Cycle
- 10 Ways to Attract Potential New Employees
- 10 Ways to Recruit Potential New Employees
- Top 10 Tips for Interviewing Potential New Employees
- Top 10 Tips for Hiring New Employees
- 10 Tips for Successfully Onboarding New Employees
- 10 Ways to Boost New Employee Performance
In part 2 of this topic, I cover what happens when people decide to retire.
Now, it’s your turn. Have you seen other reasons that people resign? Are you a part of the Great Resignation? If so, why did you choose to leave your employer? If you’re considering leaving, why? Please let me know in the comments below!