The Covid-19 Pandemic had a pronounced impact on the job market which almost no one anticipated. The situation gave rise to a new term in the labor market “The Great Resignation” which is also known as The Big Quit Or The Great Reshuffle which is an unceasing trend in today’s job market.
The Great Resignation is a term that was first coined by Professor Anthony Klotz of Texas A&M University in May 2021in an interview which was adopted seemingly overnight and became a well-known phrase in the field of Human Resources. It was used by him when he identified the employment trend triggered by the Covid-19 Pandemic when in the year 2020, US employees suddenly started quitting and switching companies in search of better remunerated, growth-oriented, and employee-friendly jobs.
It was first started in a few service industries such as retail, hospitality, food service, etc when the Pandemic was at its peak due to the nature of their business model where both the customer and the service provider need to be present at the same place at the same time which was not possible due to the several restrictions put on the operations of businesses worldwide which led to its employees to quit their jobs in order find something which would provide them with the livelihood. It then straightens out to the technology and healthcare sectors as well.
When the Pandemic started to strike down the attrition rate instead of declining kept on increasing in a few sectors, especially in the IT sector. In India, the IT sector continued to see a spike in employee attrition in the December quarter of the 2020-21 fiscal year which created a huge stir among the IT companies be it small or big as the attrition rate rose to 25.5% from 15.3% which was at two decades high for India. These were the figures reported by many large IT companies like Infosys, Wipro, and TCS. If this was the situation faced by the giants of the sector then the smaller companies were also not left behind from facing employee attrition as employees are not only quitting for money but also for many other reasons the Pandemic has also thought one more thing to everyone “YOLO-You Only Live Once” which included offering flexible working hours, employees finding opportunities in their place, permanent work from home, etc.
This scenario forced IT firms to rethink and ramp up their hiring plans and the way they work but also how to retain their best talent. Soon after, companies began competing for salary increases. Candidates went to the company that provided the greatest wage, which was almost always a startup. Employees began to leave in droves to join smaller enterprises that provided higher compensation. This influenced the total workforce numbers in IT majors. Due to a scarcity of experienced talent in these industries, working professionals with specialist skills in data analytics, cloud infrastructure, and Java were in high demand.
Although this is a phase that shall pass still this has opened doors for the companies to revamp their policies and procedures that they have been following for years be it its compensation structure, leave policies, working hours, retaining talent, and many more.
How To Prevent It
Without people you can’t have a business, human resources are as important as any other resources required to run a business and to keep it going. Employers need to significantly concentrate on how to make employees satisfied and motivated so that they keep contributing to the growth of the company while enjoying their job.
Lucent Innovation is alleviating The Great Resignation by having policies that provide employees with flexible working hours, encouraging work-life balance, and rewarding employees for their loyalty in the form of work anniversary celebrations and other monetary rewards, which keeps the employees motivated and also creates a sense of belongingness towards the organization. We provide our employees with a blend of advantages, the environment, values, and company culture. The reasons why you should join Lucent Innovation and be a Lucentian…..
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