Will the Great Resignation Resurge in 2025 Amid Employee Discontent?

January 21, 2025

The Great Resignation—a massive wave of employees leaving their jobs primarily triggered by the COVID-19 pandemic—was officially declared over by mid-2023. However, as we step into 2025, there is rising speculation among labor market experts about the potential resurgence of this phenomenon. This speculation stems from growing employee dissatisfaction, economic signals, and shifting managerial sentiments. The article in HR Daily Advisor delves into these dynamics, exploring whether the circumstances are ripe for another extensive workforce upheaval or if current conditions differ sufficiently to prevent such an event.

Rising Employee Dissatisfaction

One of the central themes explored in the article is the palpable discontent among employees. Data from a recent ResumeTemplates.com survey reveals significant unrest, with 56 percent of full-time employees in the U.S. expressing a desire to change jobs in 2025. Furthermore, 27 percent have already embarked on job searches, with one in three planning to leave their current positions even without new roles lined up. These figures highlight the simmering dissatisfaction that could contribute to workforce volatility in the near future.

Dr. Heather Lamb, a workplace well-being expert, underscores this sentiment, explaining that multiple factors, such as increasing operational costs and ongoing debates about returning to office work, are exerting pressure on companies. These pressures could potentially ignite employee unrest and higher turnover rates. Economists are also detecting early signs of instability in labor markets, with employee engagement surveys indicating low job satisfaction levels, particularly concerning work-life balance and career development opportunities.

The increasing economic strains experienced by many employees add another layer to their dissatisfaction. Rising costs of living, coupled with stagnant wages, mean that many workers feel their efforts are not adequately compensated. These feelings of economic injustice can drive them to seek better opportunities, contributing to the rising trend in job searches observed in the recent surveys. As more employees express a desire to switch jobs, companies may face increased challenges in maintaining a stable workforce.

Economic Indicators and Labor Market Signals

Despite these warning signs, the article notes that the transition from expressing dissatisfaction to actual resignations is complex and unpredictable. While low satisfaction might indicate brewing trouble, it doesn’t necessarily imply an imminent mass exodus akin to the original Great Resignation. Employers, thus far, are showing a remarkable degree of calm, with relatively few expressing high levels of concern about talent retention and attraction.

Russ Wakelin from WTW (Willis Towers Watson) provides insights from WTW’s Salary Budget Planning Report, which suggests employers’ anxiety about talent retention has decreased. In December 2024, 38 percent of companies indicated they were not or only slightly concerned about this issue, up nearly 10 percent from 2022. This lack of panic is echoed in employer actions regarding compensation; salary budgets, which saw significant growth from 2021-2023, stabilized at around 4 percent in 2024. This stable compensation investment suggests that employers do not anticipate a scenario necessitating drastic retention efforts.

Economists observing the labor market are also less inclined to predict a massive resurgence of resignations. While economic indicators such as low job satisfaction might suggest potential instability, companies have adapted strategies to mitigate these risks. Employee engagement programs, flexible work arrangements, and enhanced career development opportunities are among the measures being employed to address employee concerns. While these strategies are not foolproof, they demonstrate an awareness and proactive approach from employers to foster a more satisfied and stable workforce.

Shifting Managerial Sentiments

The overarching trend identified here is the significant shift from the unique conditions of the early 2020s to the current economic and social climate. The first Great Resignation occurred amidst the fallout from an extraordinary global pandemic, prompting many workers to reevaluate their life choices and employment. Illness, caretaker responsibilities, stringent health and safety protocols, and existential reflections contributed to the large-scale departure from the workforce.

However, as Lori Wisper from WTW points out, today’s environment differs markedly from those years. While employee dissatisfaction is still prevalent, it may not translate into a mass resignation. The ongoing labor shortage means that while there may be more job switches compared to 2024, this may not reach the levels seen during 2021-2022. Economic signals such as lower interest rates potentially spurring investment and growth, and the likelihood of a “business-friendly” administration reducing regulations and corporate taxes suggest conditions that could support labor market stability. Nonetheless, there are potential vulnerabilities, including higher prices, inflation, and restricted growth due to fewer immigrant workers.

Managerial sentiments have also evolved over the years, with employers now focusing more on creating a positive work culture and offering benefits that align with employee needs. Companies are investing in mental health support, flexible schedules, and professional development to retain their talent. These efforts reflect a recognition of the importance of employee satisfaction in maintaining a productive and committed workforce. While challenges remain, the proactive stance by employers indicates a strategic approach to mitigating the risks associated with employee turnover.

Targeted Concerns and Segmented Labor Market

The Great Resignation, a significant wave of employees leaving their jobs triggered mainly by the COVID-19 pandemic, was declared over by mid-2023. Nevertheless, as we venture into 2025, labor market experts are increasingly speculating about the potential return of this phenomenon. This speculation arises from growing employee dissatisfaction, various economic signals, and changing managerial sentiments. According to a recent HR Daily Advisor article, these elements are examined closely to determine whether conditions are conducive to another large-scale workforce upheaval. The article dives into the complexities of the current labor market, highlighting factors like changing work expectations, evolving company policies, and economic pressures that could influence a resurgence. It also questions if the present environment has changed enough to avoid a repeat of the earlier mass exodus. As we move forward, understanding these dynamics is crucial for businesses aiming to maintain a stable and satisfied workforce amid tumultuous times.

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