Who could have predicted that so quickly after the sharpest recession in recent memory, during an ongoing pandemic, Americans would be quitting their jobs in droves? But that's exactly what's happening. It's become such a phenomenon, the media and economists have dubbed it the 'Great Resignation.'
The U.S. Department of Labor reported that over 10 million people quit in April, May and June of this year. On the heels of these massive resignations, Bankrate's August jobseeker survey, published Monday August 23, reports over 55% of people in the workforce, characterized as those that are currently working or actively looking for employment, are likely to look for a new job in the next 12 months.
Why is this happening? Will it continue? And what does it mean for the DC Metro area?
The 'Great Resignation' has impacted Americans across all industries and pay grades. The data shows that this is not just a pandemic issue, as numbers didn't begin to spike until after vaccinations were well on their way. No, instead this appears to be a worker engagement issue. The pandemic further cemented widely held beliefs of Millennials and Gen Z, the largest generations in the U.S. Labor force, around individual purpose and how work should be about more than making money. Quite frankly, many are also simply burnt out from the unique stresses of the pandemic.
So, what does this mean for us in the DMV? There seems to be a growing consensus that instead of life accommodating work, work now needs to accommodate life. To remain competitive, employers will need to become more employee-centric to keep workers content. This may include increasing salaries, ensuring more flexible work schedules, and adding non-traditional perks and benefits like 4-day work weeks to name a few. Though costly, these investments may be worth it in the long run considering that the up-front cost of replacing an employee can be up to twice their annual salary.
Companies big and small are already taking action. For example, to compete for warehouse workers in competitive markets like Washington D.C., Walmart and Amazon have both started to hand out temporary pay increases and sign-on bonuses through January 2022.
Melissa Jezior, President and Chief Executive Officer of Eagle Hill Consulting, an Arlington, VA research firm that produced the 2021 Eagle Hill Consulting COVID-19 Vaccines and the Workplace Survey explained: "The key for employers is to remain flexible and listen to employee views so they are best positioned to navigate through even more COVID-19 uncertainty. It's even more important for employers to fully understand what employees want given the acute labor shortage. Unlike the early days of the pandemic, workers aren't afraid to quit their jobs. Retaining talent means creating a culture and work environment - virtual or in person - that is aligned with employee preferences.”