The Root Cause of the Great Resignation Is Not What You Think

The Root Cause of the Great Resignation Is Not What You Think

Theories abound about why workers are leaving their jobs in record numbers in 2021 and thus creating what pundits are calling the Great Resignation. The U.S. Bureau of Labor Statistics reported that 4.3 million Americans quit their jobs in August. These resignations continue to be higher in food service, retail, and education.

One popular opinion was that people quit unexpectedly and did not look for a new job because of the generous unemployment benefits instituted during the pandemic. The claim was that the job market would return back to normal once those benefits were phased out.

Even though the benefits ended over Labor Day weekend, there has been no significant recovery in employment. Twenty states actually stopped the benefits over the summer and have seen no improvement since then either.

So what’s really behind this trend? According to economists and labor market experts, American workers are soul-searching.The Great Resignation is a philosophical reset of work expectations.

What Workers Really Want

Heather Long, an economics correspondent from the Washington Post, spoke with CBS News recently to discuss her reporting on the Great Resignation.

She said some workers are still concerned about COVID-19, yet that fear may be waning with the increase of vaccinations coupled with decreased infections. Many others simply want to change what they’re doing with their lives.

Lower wage workers are protesting over substandard pay and harsh work conditions, but even mid-level workers who earned higher salaries and better benefits are leaving to open their own businesses or pursue their passions.

Long said that the two biggest priorities for Americans are finding something different or more fulfilling, and working for an employer that values both mental health and work-life balance.

What does this mean for companies?

Offering higher salaries to job candidates may seem like an obvious fix to the problem, but be prepared for the needle to barely move as a result. And it’s clear from the last few months that unemployment benefits weren’t holding workers back either.

“The early evidence certainly suggests that the unemployment benefits were not the main reason holding people back from going and seeking work again,” said Long.

Instead, the Great Resignation has proven to be more about personal values and less about economics.

The Great Reassessment of Work in America

In her interview, Long described what’s happening as a” great reassessment of work in America,” and one of the “biggest shakeups of the labor market since World War II.”

It takes a significant or traumatic event like a pandemic or world war to get people questioning their lives and how work fits into it. So much about the workforce changed in the mid-1900s. Americans were still reeling from The Great Depression only a few years before the war that caused unemployment rates to skyrocket to 25%.

The start of the war actually got things moving again. Factories were established to produce weapons and supplies. More Americans, including women who were previously expected to be stay-at-home wives and mothers, went to work to support the effort. A majority of the workforce became permanently industrialized in that decade.

The American workforce was never the same after World War II, and many experts are pointing to a similar shift today in 2021.

Advice for HR Professionals and Companies

Knowing the root causes of “The Great Resignation” will help HR departments and companies truly solve this labor crisis. Money is important. Everyone needs to pay their bills, and it would be nice to have a few extra dollars to take an extra vacation or buy a more expensive car. But don’t make the mistake of thinking it’s all salary that will bring back workers.

Even if some employees return for a higher salary, it will only keep them engaged in the short-term. When they eventually quit again because of burnout, companies will be back to square one.

Younger workers from the Millennial and Gen-Z generations are leading this trend. Besides the money, they want to feel safe and well-compensated. They want to be treated with decency by employers, who care about their mental health and personal downtime.

by Mckenzie Cassidy

Originally posted on HR Exchange Network

The Great Resignation

The Great Resignation

The employment market has taken the American worker on a roller coaster ride over the last year and a half. Unemployment rates hit record highs in 2020 with the spread of the coronavirus (COVID-19) pandemic. Nearly a year later, the Job Openings and Labor Turnover Survey reports new jobs have increased to “a record 9.3 million, as the economy rapidly recovered from its pandemic depths.” To add another piece to the employment puzzle, nearly 4 million workers quit their jobs in the same month, coining the term “the great resignation.” What caused this dramatic exit? Many employees were spurred to reflect on their priorities during the pandemic and identified more free time as a key factor in their employment future.

As the pandemic spread last year, workers were forced to make arrangements of all types. Those on a temporary hiatus from the office scrambled to adjust to a work-from-home setup. Others who were laid off were pushed to conduct job searches in a market where jobs were few and far between. Additionally, families were pressed to juggle childcare and remote school arrangements with little to no warning. The changes were big and hard, but between all the hustle and bustle workers adjusted to this “new normal.” During that transition, many evaluated their prior work-life balance – more specifically, what was working and what was not. COVID-culture put priorities into perspective for many.

Americans experienced burnout at record levels during this stressful time and many came out of this period with a newfound respect for putting their mental health first. As “return to office” notifications landed in inboxes, many decided they were not willing to return to the office full time. A study conducted by Prudential, a global insurance and financial services firm, concluded that approximately 33% of Americans are disinclined to work for employers that aren’t offering remote work for a portion of their week. This introspection helped many workers see that their priorities needed to be rebalanced. Many wanted to spend less time commuting and working in the office, and more time on personal interests and with loved ones. This “aha” moment, coupled with a resurgence of new jobs in the market, led many to feel a newfound sense of confidence in finding a new opportunity. And that resulted in a dramatic shift in the number of employees choosing to leave their jobs, feeling they would find roles with more flexible work hours and supportive work environments.

There is no doubt we will continue to see fluctuations as our economy responds to this newly resurgent employee market. Employers can be proactive in retaining employees who may be evaluating their current work-life balance. Managers and Human Resource staff can engage with employees early and often. Don’t wait for your employees to raise a concern about workplace flexibility – lead the charge by looking into what your company can do to support this interest.

©2021 United Benefit Advisors, LLC. All rights reserved.

Exploring Year-Round Benefits Engagement

Exploring Year-Round Benefits Engagement

Just as with any good, healthy relationship, communication with employees is key. Only communicating with employees regarding their benefits package during open enrollment will most definitely result in them not taking full advantage of all it has to offer. In an effort to assist employees in understanding and maximizing their benefits, companies should use a year-round benefits engagement strategy.  Let’s explore some simple ways to set up your annual communication plan.

START WITH THE END IN MIND

As you begin crafting your engagement plan, think of the overall goal you want to accomplish. Perhaps you simply want your employees to be better educated on their plan offerings. Maybe you’d like to reduce the number of questions that employees ask during open enrollment meetings. Or, maybe you want your employees to utilize a certain plan benefit that has been historically underused resulting in higher costs to the employee or the company. Whatever the case, first set your goal for the communication plan.

CREATE A CALENDAR

Now that you have an end-goal in mind, start thinking of how frequently you want to communicate.  Schedule your communication moments to post consistently. Maybe you start a “Benefits Minute” that hits the first Monday of the month. Or, start a “Benefits Blog” that posts every other Friday. Whatever the case, make the communication happen on a schedule so that employees know when to expect it and know what it’s called.

KEEP IT SIMPLE

Wordy emails, drawn-out meetings, and forever long phone messages will quickly get ignored and deleted. Instead, follow this simple formula when crafting your communication:

  1. Here’s what you need to know about your benefits.

Give a quick overview of the benefit you are focusing on for this particular communication.

  1. Here’s why it’s important that you know this.

In a few short sentences, explain how this benefit benefits the employee whether it be a cost savings, time savings, or simply a great help to them.

      3.  Here’s what you need to do to find out more.

Provide a way to find out more information on this benefit by giving a link, an email address, or a phone number.

MIX UP YOUR COMMUNICATION STYLE

Communication isn’t one-size-fits-all. People learn in different ways—some may be visual learners while others may be oral learners. Make sure you mix up the way you communicate to cover both types. Also, change up the method of communication. Try emails, explainer videos, printed flyers, and quick, stand-up meetings. By using a variety of methods, you are able to engage a broader audience since your company is comprised of a range of ages, genders, learners, and tech users.

Engaging in a regular, year-round communication strategy for explaining employee benefits will support both the company as well as the employee. Set your strategy in motion by following the simple tips shared here. And, when you do this, you will see that your employees will reap the benefits of a healthy understanding of their benefit plan.

In Depth: The Future of Work Part 2

In Depth: The Future of Work Part 2


The future of work is now. You’ve probably heard that being said since the onset of COVID-19 and the growth of remote work. Well, it’s true and as the nature of how work gets done changes, so too does the way HR’s function plays out.
In part 1, we took a look at current trends, spoke to experts and focused on the learning and development arena when it comes to the future of work. In part 2, we’ll dive into other HR specialties and consider how they are changing as well.

Talent Acquisition

In addition to talent acquisition, there are other areas that need some transformation. That includes human resources itself.
“It’s absolutely critical to put in the time to learn new things, especially when it comes to HR Technology. Don’t let fear of the unknown, or a lack of understanding about technology scare you away,” Tracie Sponenberg, Chief People Officer of the Granite Group said.
And the statistics are certainly on her side. According to a report by Harris Interactive and Eightfold.ai, those companies adopting HR are 19% more effective in reducing the time HR spends on administrative tasks.
While we’ve seen continued changes to the profession as a result of technology, we’ve also seen a real need for HR practitioners to focus on employees at the same time. HR automation/robotic process automation (RPA) provides the ability for the focus to be shared and making sure goals are met. Some of those administrative tasks include benefits management, form processing and even employee questions related to policies and procedures. Chat bots are helpful in this particular instance.
Additionally, automation with the help of provided data can reduce pain points and drive change across the business. For instance, in a manual process, there is some level of human error that can happen. While errors in automation do occur, it is at a much lower rate. Automation can be used to automate forms and workflows that avoid printing, signing and scanning. It can also automate the dissemination of those documents to ensure they are delivered to the appropriate people. And, it can also help in pulling data, filling out systems and databases and elevating manual data entry.
“If HR takes the time to automate the routine day-to-day tasks and ‘paperwork,’ we can be free to really dig into strategy and people development – coaching, training and developing our team members to be prepared for the future of work – whatever that may mean to our individual industries and companies,” Sponenberg said.

Remote Work

In addition to being prepared for the future of work as Sponenberg said, HR must keep an eye on where work is going to be happening. There aren’t many places where it’s happening in office buildings anymore. It’s happening in home offices and public spaces that can accommodate social distancing. It’s likely to stay that way as more and more workers have embraced flexible scheduling and remote work.
Remote work has quickly become a reality for many different industries, but that trend was already occurring before the pandemic. There had already been a 173% increase in people working remotely since 2005. Additionally, 75% of workers say they’re more productive at home.
Some of the reasons given include fewer distractions and less commuting. This presents a fair amount of challenge. A big one centers on engagement. Remote workers aren’t that much different from brick-and-mortar employees and the concerns are similar. Remote workers, just like those sitting in the office, are at risk for leaving the organization within the first year and even leaving to pursue other opportunities to advance. That means they need just as much attention when it comes to engagement. In some instances, more attention is necessary.

Stemming the Tide

To solve issues related to the retention of remote workers, first think about setting expectations. The whole point of remote work is not having to go into the office. As such flexible work scheduling is typically a piece of the overall remote working strategy. To be more to the point – workers probably aren’t working a 9-to-5 shift if they’re off-site. That being said, managers can set particular expectations such as times the employee is expected to be “on the clock.” Some people refer to these as “busy hours” or “office hours.” It’s during this time remote workers should be expected to be prompt in their responses to emails and phone calls as well as be available to collaborate with the team.
Secondly, these workers must be included and that requires attention-to-detail and technology. If a team is meeting at the office to discuss strategy or anything for that matter, remote workers should be allowed to participate. They should actually be expected to do so. With tools such as Zoom and Skype available, there’s no reason they should not be included in the conversation.

There is some real concern remote workers, in addition to allegedly working less, aren’t nearly as productive as their in office counterparts. Again, that’s a misconception. Look to CTrip, China’s largest travel agency. A professor from Stanford studied whether or not remote work was “beneficial or harmful for productivity.” It took two years to complete the study and what the professor found is a profound increase in productivity for a group of remote workers over their in-office counterparts.

It wasn’t all “sunshine and rainbows”, however. Those remote workers did report an increase in feeling lonely and many reported they didn’t want to work from home all the time. In the end, the recommendation was to create a hybrid of sorts; one that balanced working from home and in the office.

Words of Advice

There is no stopping the future of work. In fact, as this report has explained it’s already here. While it is a concern for every HR professional working today and those who are about to enter the practice, there are words of encouragement to be shared.

By Mason Stevenson
Originally posted on hrexchangenetwork.com

In Depth: The Future of Work Part 1

In Depth: The Future of Work Part 1

The hardest thing about the future of work is defining the concept. The chief reason has to do with change. It’s constant with new technologies coming online at an increasing pace and changing the way people complete their work.
If the data is to be believed, what HR knows about work is quickly disappearing. Korn Ferry predicts by 2030 a global human talent shortage of more than 85 million people will exist. That’s an astonishing prediction, but changes are expected well in advance of that year. Forty percent of today’s Fortune 500 companies, according to Deloitte, won’t exist in 2025. Additionally, the World Economic Forum predicts 133 million new jobs will be developed by 2022 through artificial intelligence.
For HR, this data points to a very clear path: prepare your company now for the work of the future.
“The fact is we can guess all we want, but we can’t ever truly know what the future holds,” excites Granite Group chief people officer Tracie Sponenberg.”
Despite all the difficulty in defining the future of work and some of the concerns that come with it, Sponenberg said there is some excitement to be had. Other HR professionals agree.
“What excites me most are the new technologies that are going to support employees in making leaps in speed, agility, efficiency, productivity and overall performance,” Andrew Saidy said.
He’s the vice president of talent digitization, employer branding and university relations for Schneider Electric. As the digital transformation of HR continues, we’ve certainly seen advancements in those specific areas. Employees are using more tools that are either digital in part or completely so. Both help employees increase efficiency which leads to an increase in productivity and performance. Technology has also allowed companies to be agile in their approach to work.
GE Healthcare head of global digital learning Christopher Lind agrees with Saidy saying technology helps organizations break all the rules when it comes to connecting, collaborating and experiencing work. Even so, he acknowledges there is still some fear around technology.
“Instead of being afraid of machines taking our jobs, I believe we should be excited that machines can do the rudimentary things we waste so much time doing, so we can focus on the higher order things that really drive us,” Lind said.

Learning and Development

Despite Lind’s statement, there is still some concern around the potential loss of jobs to technology solutions — specifically around artificial intelligence and automation.
It might surprise you to know that’s not an uncommon feeling to have. There have been concerns about technology taking away jobs since the First Industrial Revolution in the early 1900s. Here we are 100 or more years later entering the Fourth Industrial Revolution and we’re experiencing similar concerns. While that’s an understood feeling, HR needs to help move the workforce away from this type of concern and focus more on skilling accordingly… what is, sometimes, referred to as future-proofing skills. That’s really the name of the game.
During this particular revolution, new industries and roles will be created. Forrester predicts robots, AI, machine learning and automation will create 9 percent of new jobs by 2025. Some of the new jobs expected to be created include:

  • Robot monitoring professionals
  • Content curators
  • Data scientists
  • Automation specialists

Naturally, some will go away. By 2025, Forrester also predicts those same technologies will replace 16 percent of US jobs. Most of the impact will be felt on office and administrative support staff roles as well as roles where workers have a low amount of formal education – the so-called “at-risk jobs”. Learning new skills and building on existing competencies will be crucial to companies wanting to remain competitive in the current climate. The challenge there lies in trying to figure out which skills your employee will need.
The data provided gives HR some indication on where to begin. With more robot, artificial intelligence, automation, and other related jobs expected in the future, employees should start building their knowledge and skill base now.
While it seems daunting, there is some good news. A World Economic Forum and Boston Consulting Group report says “95 percent of at-risk U.S. workers could be successfully retrained for jobs that pay the same as or more than their current positions and offer better growth prospects.”

So How Does HR Move Forward?

Taking employees off-line for weeks to train is pretty much a “no go” at this point in the game. Learning and training almost have to be conducted “on the job” in reality. This isn’t just a need. Many employees actually prefer learning on the job. Keeping up workflow and productivity is important to the continued success of the business. Different companies are using different methods to accommodate this need.
Walmart, for instance, has automated tasks at their stores such as customer checkout. That means associates have more time to train on a multitude of concepts including customer service.
The department store giant is using virtual reality to simulate different issues their associates will experience during their employment. For instance, VR is being used to simulate Black Friday rushes.
AT&T is taking a different approach. The company has instituted a program called “Future Ready”. Essentially, the $1 billion, web-based initiative includes online courses through a myriad of vendors and universities. This allows employees to figure out what skills they need and train for the jobs the company needs right now and will need in the future. Their online portal, called Career Intelligence, allows workers to see available jobs, the skills each requires, the suggested salary and whether or not the area is expected to grow or shrink in the future. It is career pathing at its best and allows employees to figure out how to get from where they are now to where they want to be and the company needs them to be in the future.
By Mason Stevenson
Originally posted on hrexchangenetwork.com