Experts from different industries have referred to a large number of employees expected to resign or those that have already quit their jobs, both during and after the COVID-19 pandemic, as "The Big Quit" or "The Great Resignation." Dr. Anthony Klotz, an organizational psychologist, invented the term for a phenomenon that revolves around the notion that employees are coming to new understandings about how they view work, embracing remote work as well as leisure, and living a more fulfilling life unencumbered by the drudgery of the 9–5 job.

In this article, we will look into the causes of the Great Resignation, predictions for 2022, and how outsourcing can be a good strategy for companies to deal with it.

What stimulated the Great Resignation?

In an interview with Bloomberg in May 2021, Dr. Anthony Klotz discussed the predicted plethora of employees resigning from their jobs voluntarily. He pointed out these four reasons that stimulated the trend:

1. Overdue resignation: 

Employees who had planned to leave before the pandemic started, decided not to do so and continued with their jobs, because of the fear of uncertainties and risks posed by lockdowns. Making another adjustment amidst all the chaos was too dangerous for them. But as they have now been accustomed to the new standard of remote work and adapted to its realities, their earlier intention of resigning has been restored.

2. Burnout 

Dr. Klutz pointed out that employees in the retail, healthcare, and hospitality sectors, or any front-line worker in other industries, and parents who had to balance work obligations with at-home teaching, all experienced burnout during the pandemic. With no travel and other sources of entertainment, people stopped spending money. Decreased spending combined with financial incentives from the government became the push they needed to take a break from altogether.

3. Epiphany on work and life 

People started reflecting on their own lives and asked themselves if they were living their lives the way they really want to. Lockdowns and working from home freed them from all the distractions that were much needed for this reflection. 

4. Work-from-home

While many people found working from home effective, many of them also had difficulties adjusting to it. Regardless, as situations started to ease out and companies called their employees back to work from offices, they grew to dislike this move. Those who disliked working from offices at the beginning now started to prefer it instead of going into the office. Why wouldn’t they, after all: no traveling to the office, more family time, and even better sleep-ins. Thus, unwilling to go to the office, many people simply resigned.

Statistics regarding the Great Resignation

A report from the Bureau of Labor Statistics (BLS) in America proves Dr. Klotz’s predictions. The number of Americans who left their jobs hit a high of 4.5 million, increasing the job-quit rate to 3%. If we compare this to the statistics from previous months, this figure was an 8.9% increment from October. In September, a new record was observed at 4.36 million, which was in fact, broken again.

How can Outsourcing Help Employers in this Situation?

With resignations and labor shortages throughout different industries, the affected companies can outsource their business activities whenever and wherever possible. There is no point in hiring employees in-house since there is no guarantee they won’t follow the resignation trend after a few months. As a result, you will be back to square one. Going through the hiring process again and having to bear the operational cost in times of crunch will only drain more of the company’s resources. Hence, outsourcing will save the day.

We already have a blog on how companies can benefit from outsourcing. But to give a brief idea, here are some reasons for outsourcing:

1. Outsourcing agencies can provide employees at a very cheap cost and reduced spending means a strong financial position for the company.

2. You can find equally or even more competent employees through outsourcing. Other economies have just as many talented people who are seeking opportunities for working with international companies.

3. Outsourcing agencies also offer expertise in certain areas of business, enabling you to find an agency for your specific business needs.

4. When you work with agencies that have years of experience in their field, they will provide you with insights that you may not have been aware of. Such knowledge can be valuable for your business and increase your business efficiency.

5. You will be able to focus on your core competencies and outsource business activities of lower importance. This only improves the quality and empowers your long-term goals.

6. Working with people from different countries means more flexibility in working hours. 

Takeaways

At GoCode Solutions, we help businesses connect with all types of talents for their business needs. We have a reliable network of talent pools to hire from where we can find the best candidates with the necessary qualifications. Our core values are to work smart, act with integrity, continuous improvement, and work to make a difference. Every partner company is of equal importance to us and we confidently assure the accomplishment of all the benefits discussed above.