The Great Resignation Era: How Diversity and Inclusion Can Slow The Pace
Throughout the COVID-19 pandemic, resulting complications led to “digital burnout”, particularly for junior members of the workforce. In June of 2021, more than half of 18 to 25 years olds were actively considering quitting their jobs. And they weren’t the only ones: 41% of the entire global workforce felt the same way. The predictions followed through in the United States, nearly 4 million people — about 3% of the country’s workforce — left their jobs every month in 2021, more than half a million more than 2019’s monthly averages. Even now, as restrictions are mostly lifted and employees are allowed to return to the office, 1 in 5 workers plan to leave their job in the next year. Although COVID-19 led many companies to be more acutely aware of their employees’ well-being, several others, in response to an unprecedented loss in revenue, incited mass layoffs in a panic to retain numbers. For example, the airline industry witnessed a 60% loss in revenue in 2020, and as a result over 400,000 workers were fired, furloughed, or encouraged to retire early. As remaining workers went on strike over low pay in late 2021 and 2022, top executives continued to earn millions. The disposal nature of employees in situations like these only brought already existing issues to light. The pandemic served as a trigger, but the underlying causes for the Great Resignation are deeply rooted, and until these issues are addressed, it’s unlikely that the trend will subside. The Ethical TransformationⓇ of businesses will explore ways to ease the transition and identify ways to prevent it from happening again in the future.
So, What is the “Great Resignation”?
Sometimes referred to as “The Big Quit” or the “Great Reshuffle”, The Great Resignation is an ongoing economic trend in which a significant number of employees, predominantly in Western countries, are voluntarily resigning from their current roles. The term was coined by Anthony Klotz, a professor of management at University College London, who predicted this wave in May of 2021. A number of factors initiated this trend at first, such as inadequate remote working support for employees in isolation, or a need for more income under varied household circumstances. As the direct impact of the pandemic ebbed, many were forced to confront their “lockdown reflections”, and left their jobs for more autonomy, support, or simply more meaning in their work. But over the last decade, quit rates have been steadily increasing, signalling that it’s not that these issues have only now arisen in the wake of the pandemic, but rather that they have always existed, and have only now come to light. Now, over halfway through the year, as inflation troubles countries across the globe and the cost of living rises, there is significant pressure for employers to adjust pay and practices in response.
Where do Diversity and Inclusion fit in?
COVID-19 disproportionately affected people of colour and those from marginalised and low-income backgrounds, highlighting gaps of inequity that were before swept under the rug. Aside from the higher rates of infections and deaths, a rise in anti-Asian hate crimes and police brutality among Black populations showed us that the impact was far-reaching. In response and retaliation, groups of people — both from these communities and outside of them — banded together in protest against racism and inequality. As a result, diverse talent recognised their worth, saw that there was support and solidarity elsewhere, and went searching. Since 2020, expectations have clearly shifted: job seekers are inquiring more about companies’ D&I initiatives than ever before. 44% of surveyed recruiters said that candidates have turned down interviews or job offers due to a lack of diversity in a company’s workforce. The 2022 OC Tanner Report stated that when employees feel “less connected to their workplace, culture, and purpose, the likelihood of great work falls 90%, the probability of burnout increases 11x, and the odds that employees will leave within three years surges 6x”. This connection to work culture lies in the sense of security and understanding, so employees feel safe, secure, and welcome enough in their place of work to want to stay.
The Future Of Work
“A new landscape of work and business has emerged from the pandemic, and helping employees feel connected to purpose, accomplishment, and one another — no matter where or when they work — is more important than ever,” says Gary Beckstrand, VP of the OC tanner institute. It’s important to note that this “softness” towards work isn’t a direct result of the pandemic, but a result of decades of normalised work culture that, when suddenly relieved, have now been shown to produce better work ethic. For example, remote work and a hybrid structure allowed workers to have a better work-life balance (and excel in productivity as a result) when relieved of the previous rigid 9-5 office structure. Remote work also allowed parents, caretakers, and people with disabilities to better adapt to their work. In order to retain employees through this Great Resignation period, businesses must find new ways of flexible, healthy working, create more benefits and pathways for all their employees, and ensure that every change is made through an empathetic, diverse, and inclusive lens. When companies listen and prioritise the needs of their employees (rather than simply adapting to circumstances), change is made for the better. Regardless of whether this shift is supported or not supported, it is happening regardless – ideas like diversity and inclusion are key to future-proof businesses.
