Are We Past The Great Resignation… Or Is The Second Wave On Its Way?

More than half of Americans have a resignation letter drafted and saved for when they hit their breaking point at work, according to new research from Wisetail, a learning management systems company. What’s been coined “The Great Resignation” could linger for longer than many have expected, even bringing a second wave later this year. I discussed this with Ali Knapp, Wisetail’s president, to better understand what’s to come and how companies can avoid another mass exodus of employees.

Gary Drenik: Do you think the Great Resignation is over?

Ali Knapp: It’s not over, and I believe resignation trends will continue for longer than we ever anticipated. What’s important to remember about The Great Resignation is that it’s been fueled heavily by the reordering of daily priorities for most segments of the population. Factors such as work-life balance, mental health and connection to a greater purpose were all reprioritized during the pandemic, and that’s been the undercurrent of The Great Resignation from the very beginning. With that said, there continues to be global turmoil everywhere you look. International wars, pending economic downturn and life-altering supply chain shortages are all brewing and bubbling in the minds of employees, and we know that this type of uncertainty is closely related—if not directly correlated—to employee unrest.

Drenik: Why do you think there could be a second wave?

Knapp: For most industries, I think there will be many more ripples rather than a full second wave, and those residual effects are going to hit different organizations in different ways. What I mean by that is this: in 2021, when more than 47 million American workers voluntarily quit their jobs is likely not to be repeated, however, that phenomenon did provide every single business leader with a once-in-a-lifetime wakeup call. Those leaders who took it upon themselves to take action and truly re-examine their unique people strategies are going to sit much prettier than their complacent counterparts. There are a lot of employees out there that have watched this entire thing unfold (likely having said goodbye to a lot of their co-workers in the past several months) but haven’t moved jobs...yet. They have been standing on the sidelines, paying closer attention to the way their employers have responded. Those employees are really who we are talking about when we think about a possible second wave or ripple effect happening. In order to avoid residual employee turnover, companies need to make sure they are listening to the employees who remain and make sure they close the feedback loop, taking actionable steps to improve upon areas of their people strategy that might be lacking.

Drenik: Why do you think people who stayed through the first wave might consider moving now?

Knapp: If they are disappointed in their employer’s response to the Great Resignation they are going to consider moving in the latter half of 2022. A study we conducted at the end of 2021, just a few months after the onset of The Great Resignation, found that 88% of employees said they would have stayed if they were offered better benefits like having more opportunities for growth (52%), better working conditions (52%), and having internal career development (49%). If factors like these have stayed stagnant or worsened, it would imply a greater chance for losing the employees that are left.

Drenik: In a recent Wisetail study, 63% of workers stated they would rather take a new job than try to get a better position with their current employers. Why do you think that is?

Knapp: A severe lack of growth opportunity. If employees don’t see future opportunities for themselves at your organization, what’s keeping them around? People are much more likely to invest emotionally (to engage) in the company when they feel like the company is invested in them. Creating and communicating growth opportunities is so obtainable, yet most companies don’t have the basic platform or tools in place to do this, which leaves employees in the dark about what’s next for them and how to get there. For example, we work with a very neat client that created an entire program dedicated to continued growth for its employees. We helped them create an internal site that lays out all of the information an employee needs to know regarding various positions within the company and the development paths to get there. By illustrating the different paths an individual employee can take to week-by-week training programs, they can see exactly what’s expected of them and what their future could look like. Small initiatives like this will have a monumental impact on your engagement and retention rates both short- and long-term.

Drenik: What advice would you give to employers to increase their employee retention rates?

Knapp: You cannot replace human connection, no matter how hard you try. In this hybrid work environment, human connection doesn’t come naturally, so companies must make it a priority and be intentional about that. According to a recent Prosper Insights & Analytics Survey, 16.4 % of adults say that Covid-19 lockdown & stay at home orders have made them more lonely. For Gen-Z adults, the number is nearly 30%. Digital fatigue is real. Employees need face-to-face connection possibly now more than ever. Much like the Roaring ‘20s after the Spanish Flu pandemic, people are ready to get back to normal life. While technology will still be a critical part of our day-to-day, the emphasis on relationship building will be more important than ever, even if we are trading the traditional handshake for an elbow tap.

Drenik: Thank you for answering those questions for us, Ali. There is still a lot to uncover when it comes to employee resignation trends, but it’s clear that taking a human-centered approach to employee engagement is critical to retention, especially in such uncertain times. It’s been an enlightening discussion.