We could all see it coming: the effects of the pandemic and repeated lockdowns would leave a deep scar on individuals and society, at every level. What nobody could predict, however, was something that has emerged in recent months in the labour market: the phenomenon of the Great Resignation.

The expression was coined in May 2021 by Anthony Klotz, a professor at Texas A&M, to describe the wave of resignations currently sweeping through western nations. In other words, the burgeoning and increasingly widespread trend for quitting a job without necessarily having an alternative option available.

The alarm was first raised in the United States, where 19 million workers quit their jobs from March to July 2021, with a peak of 4 million resignations in the month of August alone.

It wasn’t long before the trend crossed the Atlantic. In Italy, between April and May 2021, there were almost 500,000 resignations – one quarter of the total job contracts that terminated. It’s the opposite of what we expected after the end of the restrictions preventing layoffs – not employers making staff redundant, but employees leaving companies. In the UK too, recent research showed that 2 in 5 workers intend to switch jobs in the next twelve months. This is an even more worrying signal if considered with the record number of 1.1 million job vacancies reached between July and September.

So, this isn’t an isolated blip – it’s a full-blown trend that goes beyond sectors and borders. And it’s causing difficulty for a growing number of companies that are searching for suitably qualified workers in this delicate post-Covid period.

The possible reasons behind the trend that has everyone talking

In the United States, the PricewaterhouseCoopers study “Future of Work” describes a scenario in which more than 6 out of 10 workers are looking for new job opportunities. Leaving aside the concrete figures, which are alarming, what seems to be taking shape is a trend and aspiration for change that cannot be explained away simply by the difficulty of getting ‘back to work’ after long months spent working from home. At an individual level, it’s not a particularly controversial choice; but it is concerning as a mass phenomenon that is putting whole countries’ already-fragile economies at risk, as they grapple with the arduous post-pandemic recovery phase.

But what are the reasons driving this trend? It’s hard to say for certain, but the experts have identified some general causes – all of which are undoubtedly linked to the effects of the pandemic and the ‘new normal’.

A scar left by the pandemic

According to a renowned study by  Holtom, Mitchell, Lee & Inderrieden, stress brought on by a traumatic event leads individuals to make ‘revolutionary’ decisions and often triggers a change in their professional lives – to a far greater extent than a lack of job satisfaction.

It’s no surprise, then, that this kind of reaction has been triggered in the wake of a global pandemic that caused unprecedented isolation and restriction on personal freedoms. Economists and psychologists agree on the fact that the extra time people have had available in these long months of lockdown has pushed them to make profound personal reassessments of their goals, values and lifestyles, in a bid to achieve greater work-life balance.

Trauma, then, combined with the need and chance to carry out a detailed self-analysis, is thought to have led people towards an unprecedented rate of resignations.

Growing awareness of burnout

Work-related stress or burnout, as it’s more commonly known these days, is not a new phenomenon, but it’s certainly a factor that is now one of the main reasons for resignations.

Another recent study “The Great Resignation Update”, highlights that 40% of respondents mentioned burnout as the reason for quitting their previous position; of them, some 28% left their jobs even without having an alternative lined up. It is hardly surprising that the sectors worst affected by the ‘Big Quit’ are, for various reasons, those that have suffered most in the pandemic: healthcare, catering and hospitality.

A different sense of security: savings and income support measures

In almost every nation, governments have put in place new social ‘safety nets’, which are added to existing forms of benefits. These new benefits have averted the financial ruin of individuals and families who have already been drastically impacted by the crisis; on the other hand, however, they have led to another, largely unexpected effect.

The fact is, these financial incentives, added to the savings that built up when people were spending less during lockdowns, and the increase in property values, have helped instil a greater sense of financial security in those who would otherwise have been too economically precarious to tackle a risky change in life.

How businesses are responding: more incentives, greater freedom

In response to this worrying phenomenon, many businesses are beginning to adopt measures aimed at improving retention and limiting losses.

Wall Street investment banks and some major food chains and retailers including McDonald’s, Chipotle and Costco have attempted to make amends by increasing base salaries and wages for new hires.

Whilst pay rises and financial incentives might be the main, most obvious answer to combating employee dissatisfaction, a deeper need has also emerged, to go beyond that: employees want to be gratified with perks that give priority to their flexibility and wellbeing, as well as their career development.

In response to these findings, Nike, Bumble and LinkedIn have, for example, started focusing on their employees’ mental health and on the need to give them greater freedom and flexibility during working hours.

How to tackle this crisis: planning and listening

As things stand, it is tough to make forecasts about what will happen in the jobs market over the next few months. However, to ease and encourage workers to return to the workplace, it is definitely necessary to establish a new conversation between the various actors, to cut costs and boost performance, but above all to improve the satisfaction of workers and businesses alike.

In light of this, experts agree on certain strategies that companies should adopt to tackle this crisis. Here are a few useful tips:

• Prepare for the unexpected, with rigorous scenario planning: place greater importance on data analysis about turnover, to gain control over retaining resources through your corporate culture.

• Move beyond traditional wages and benefits systems: poll your employees to better understand what they are looking for and consider offering personalized packages.

• Incorporate your people strategy into your business strategy: put in place solid governance on the implementation of change programs that reimagine work, improving your communication and transparency about new operating models.

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