The COVID-19 pandemic has undoubtedly changed the way people live, work, and spend their free time, and many of the changes initially fueled by the public health crisis are very likely to have lasting effects. People in the US and abroad started to work from home, and many discovered the advantages of remote and hybrid work environments. Moreover, with important issues like inflation now also affecting US workers—coupled with a high number of available job openings—American companies may have a hard time attracting and retaining talent this year.
According to a recent McKinsey report, as many as 40% of workers are considering leaving their current jobs within three to six months. Employees are not only changing their jobs, but leaving their industries, and many people are shifting from traditional to non-traditional roles. While some opt for early retirement, others are building their own start-ups or merely taking a long break from work. Even though various workers may have several reasons for leaving their jobs, this “Great Attrition” has a single effect on American companies: The competition for talent is now intense.
Why Are Workers Quitting?
According to the US Bureau of Labor Statistics, 4.2 million American workers have decided to leave their jobs in June 2022, while only 1.3 million have been laid off or discharged. There is a fundamental discrepancy between companies’ demand for new workers and the number of people now willing to fill vacant positions, according to McKinsey analysts. Even though US companies continue to rely on conventional benefits to attract and retain workers—including financial benefits, titles, and career development opportunities—workers’ needs may have changed dramatically during the pandemic and in its immediate aftermath.
Research shows that workers are not only leaving a particular job or employer, but also changing industries. The workforce seems to be reconsidering traditional roles, as employees are now quitting their jobs for non-traditional positions, part-time jobs, or to start their own businesses. Some are leaving to take care of their children or elderly parents, and others list completely different reasons.
Another McKinsey study reports that uncaring leaders, unsustainable performance expectations, and the lack of career development opportunities are among the top reasons for leaving a job without having another one lined up.
Attracting and Retaining Talent
Employers should acknowledge the fact that filling vacant positions with qualified candidates similar to the ones who quit will become more challenging. Research indicates that only 35% of workers who left their jobs in the past two years took new jobs in the same industry.
With more vacancies now available across the US, there are more opportunities for higher pay, better benefits, and more meaningful work. McKinsey analysts also point out that different groups have completely different needs. Do-it-yourself workers value autonomy and workplace flexibility, caregivers favor both flexibility and support for health and well-being, and so-called “idealists”—mostly students and part-timers—hope for flexibility, advancement opportunities, and significant work. This information shows that employers and HR managers should probably focus on personalizing their offerings and creating unique benefits to gain and retain their workers’ loyalty.
Analysts also argue that traditionalists or typical workers remain career-oriented and continue to be motivated by higher pay, good job titles, status, and advancement opportunities. However, the number of typical workers seems to be waning as more people opt for flexible work opportunities.
The Future of Work
The pandemic served as a catalyst, prompting more and more workers in the US and abroad to change their work habits, motivations, and jobs. T
o make sure that they are able to attract and retain talent in 2022 and beyond, HR managers will have to make some important changes to resolve the discrepancy between their companies’ strategies and workers’ needs. By altering their value propositions for the better and personalizing them to fit their employees’ wants, companies could expand their talent search, assure better talent retention, and ultimately build positive work environments.
