Does the Great Resignation Continue?

Eric F. Patten, RN, BSN

The exodus gates throughout American businesses are still open and only spreading. News outlets and other watchdog agencies report what the United States has seen since early 2021, when Anthony Klotz, Organizational Psychologist at Texas A&M, coined that The Great Resignation is happening globally.

Sources indicate that “The Great Resignation” phenomenon continues in the United States (US), breaking records over the past eleven (11) months with 2.8% of the workforce (or four (4) million people) resigning monthly. There is a deeper conversation around who is resigning, why they leave, and what happens after they exit, which has sometimes been referred to as “The Great Regret.”

The challenge is real for employers dealing with both sides: the resignation and the regret. The solutions aren’t simple, either. Many workers resign for more money; therefore, with hourly wages increasing at a six percent (6%) pace higher than any level dating back to 1997, this is a problem. The biggest sectors hit are travel, hospitality, and retail. Nonetheless, the hourly wage issue isn’t keeping pace with inflation and many sectors cannot balance price increases with a wage increase. The solution to staff retention isn’t as simple as increasing pay.

Employees who have resigned or considering doing so cite that they are doing so for the betterment of their everyday lives. The worker is looking for a clean slate, a “redo” of sorts that may include focusing less on the materialistic and more on the family, improving themselves, and decreasing negative (outside) influences.

A recent Fortune magazine article by Gaelle de la Fosse showed over a third of resigners who expressed buyer’s remorse also felt their work-life balance had declined (36%), and about a third (30%) said their new job was different than what they were led to expect, and one in four (24%) said they missed the culture of their old job. The COVID-induced “clean slate” change has employees moving to a “less is better” philosophy. This idea teaches employees and employers that they can work with less overhead and less stress from home and still produce good results. Ongoing debates about remote work cite versus work-life balance can improve productivity, but innovation and creativity can suffer.

Any mutual benefits of this new balance still do not solve the problem of the exodus.

No one size fits all.

Employers are moving toward a proactive approach, offering flexible, remote, or hybrid work schedules. Bonuses, incentives, or pay increases are on the table, as are mental health benefits to employees as an additional incentive to combat stress. Although employers are tackling the Great Resignation head-on, employees are still resigning. While some experts report not seeing the trend ending anytime soon, others are questioning a shift.

It’s obvious the Great Resignation has affected all employers. It is not preventable, but it is manageable. Listening to employees and appropriately addressing concerns is a great start to a more productive and meaningful work environment.

Eric F. Patten RN, B.S.N., is the Executive Vice President of Operations & Business Strategies for The Kingstree Group, a leader in the Workers’ Compensation industry for over 24 years, utilizes a consultative approach to lead, create and manage clinical product lines for customers.