Over the last two years, more and more people have decided to resign from their jobs. This has been so widespread that the phenomenon has been frequently referred to as the Great Resignation; with countless individuals stopping to question how and why they work, and if there’s potentially something better to pursue. This has been particularly common in the United States, but it’s something that is happening worldwide, too.
How many people have quit under the Great Resignation?
Looking back at some of the data from the last 18 months (when the Great Resignation is believed to have started), we can see that there was a notable increase in the number of people handing in their resignations. This trend has continued, and in July 2021 alone, there were more than 4 million reports of individuals quitting their jobs in the United States, according to data from the Bureau of Labor Statistics.
With these kinds of numbers in mind, companies need to consider how they could potentially keep their employees despite the statistics.
What caused the Great Resignation?
Experts believe that the biggest factor driving this wave of great resignation is the pandemic. While many people were left without work, others felt the impact of being overworked and undervalued. For those lucky enough to maintain their positions, the benefits and salaries offered were no longer adequate. Factors like lockdown, the implementation of strict health measures, and even the changes in personal circumstances that Covid 19 prompted have all played their part in the wider decision to find a better work/life balance.
Supporting this theory is the fact that far more people in the healthcare industry quit their jobs in 2021 than they did in 2020, but even niches like the tech industry saw a similar increase. Interestingly, those between 30 and 45 are more likely to resign, with the rates being even higher now.
It seems that the unique situations presented by the impact of the pandemic has caused people to think more about the flexibility of their jobs, their salaries, and even how they are rewarded for their time and effort. Some believe that the emergence of work from home capabilities has caused a further push to quit jobs that can’t, don’t, or won’t facilitate these types of positions.
How to prevent the rates of resignation
Starting a business (or maintaining one) during this time isn’t likely to be as easy as it once was, as the workforce is now more demanding than ever – but that doesn’t mean it’s impossible.
The situation that your company is in and the potential risks of losing employees is typically going to be unique to you. If you’ve lost workers, the ideal solution is to look into your company and consider where issues are occurring. The pandemic isn’t the only reason behind unsatisfactory working conditions, so be sure to define where improvements could be made for a whole host of circumstances.
Aspects like the size and frequency of pay increases, promotions, compensation offers, and much more can cause individuals to want to find better elsewhere. There may even be potential problems occurring within your company that are based on the needs of different demographics (for example, consider the facilities and flexibility that you offer to pregnant women).
Once you know the root causes, you can often create plans or programs to deal with the issues your staff is facing.
Starting a business in the time of the Great Resignation
If you’re one of the many people who feel like they need to set up a business of their own and would like to quit their current job to do so, it’s worth considering whether now is the right time. The truth is that now will always be better than later; as long as you create a business plan, do your research concerning grants and any financial assistance you may qualify for, and consult professionals who can help with the entire process, you’ll have a solid chance to succeed.
It can often be good to have a regular stream of income while you’re still setting up, since new businesses don’t always generate enough money in their early days to keep afloat. The costs often surpass the income for quite some time, and this will vary depending on what it is you’re hoping to do. If you don’t have any backup money, it’s often safer to hold off quitting until you think your company is earning you enough to be able to focus solely on that, but setting up now can be imperative. After all, for one reason or another, later may never come.
For those who are unprepared, it’s not always easy to make the significant switch from working as an employer to running your own business. While doing both may seem stressful, it could be the best way to make a successful transition – and working with an experienced team like Workhy could make a huge difference.
The Great Resignation may be a challenge for many employers, but it’s not unavoidable – and if you’re looking to start your own company and have the resources available, it could be a great time to branch out.
If you want to start your business in the United States, but aren’t quite sure where to begin, it could be worth finding a team that could help you throughout the process. Countless individuals have chosen to work with Workhy, thanks to the number of services that they provide to entrepreneurs like you. Be sure to check out this page if you’re interested in learning more.