is the great resignation a short-term fad or a long-term trend?

Employers across the world have been dealing with what has been coined the ‘Great Resignation’ for months now. This ongoing trend of workers who are voluntarily leaving their jobs is making it  challenging for employers to retain the talent they need to remain competitive in their respective markets.

Randstad recently conducted a survey of more than 1,000 Canadian workers in partnership with Ipsos. The results revealed that 1 out of 3 blue-collar workers and 1  out of 5 white-collar workers admitted to leaving their jobs within the last year. While these figures include those who left the workforce altogether, it’s still a staggering number. For organizations already struggling with budget restraints in a post-pandemic market, the added costs of increased turnover can be devastating.

It’s important for employers to understand how the great resignation may be impacting their hiring efforts and attrition rates as well as what steps they can take to remain competitive in a busy job market.

how long will the great resignation last?

The biggest question employers have about the great resignation is how long it will last. While it can be nearly impossible to predict exactly how long the ongoing job departures will last, there are some definitive signs that this may be more of a short-term fad than a long-term trend. In fact, according to our survey, only 16% of both blue and white-collar workers expect to change jobs in the next 12 months. This represents a 20% decrease for blue-collar workers and a 5% decrease for white-collar workers from the last year.

how has the great resignation impacted the job market?

Despite the fact that the great resignation may be just a short-term fad, its impact is likely to last for years to come. One of the biggest impacts it will have on the job market is the shift in workers’ expectations. During the pandemic, Canadian workers faced a multitude of challenges, including massive job terminations and layoffs, transitions to remote work, increased family responsibilities, illnesses, temporary shutdowns and quarantines.

These increased demands forced workers to reevaluate their needs both on-the-job and at home. The idea of maintaining a healthy work-life balance has become a top priority for workers today. While the level of voluntary terminations is likely to slow down in the near future, it’s not likely that workers’ expectations will diminish for some time to come.  

how can you remain competitive as an employer?

If you’re hoping to retain talent while also attracting new candidates, you must understand the shift in workers’ expectations and develop an employee benefits package that has the power to entice current workers to remain with your company and prompt new candidates to apply.

We have the insights you need to build an employee benefits package that can boost retention and drive better hiring outcomes. As part of our research, we asked over 1,000 Canadian workers to rank their top motivators for changing jobs. Based on these results, we have identified the top five motivators for job changing for both blue and white-collar workers.

salaries

On top of the list for both blue and white-collar workers is salaries. In fact, two out of three workers admitted to changing jobs for better salary opportunities. Additionally, 65% of blue-collar workers and 60% of white-collar workers rank salaries as the number one motivator for changing jobs. Employers who have not done so already should take the time to re-evaluate their salary offerings to ensure they still align with industry standards. If you haven’t already done so, get your copy of our 2022 Salary Guide to benchmark your salaries.

flexible work hours

One area that has dramatically changed since the pandemic is the desire for flexible work hours. While 37% of white-collar workers and 33% of blue-collar workers want greater flexibility, this benefit looks different to these workers. White-collar workers are looking for the ability to work from home, at least part-time, and to set their own schedule based on the demands of their workload. Blue-collar workers, on the other hand, are more concerned with selecting their preferred shift and having a permanent work schedule. Both types of workers do prioritize paid time off to care for themselves or their family as well as paid short-term leave to deal with ongoing family care issues.

improved benefits

Today’s workers are also taking a closer look at the basic benefits package, including healthcare options, life insurance and pensions. The pandemic also placed a greater demand on mental health services and overall well being. Employers must revamp their benefits package to include specialized benefits, such as mental health training, telehealth services that include counseling options, complimentary healthy snacks and fitness programs, if they hope to remain competitive in today’s hectic job market.

training and career advancement

According to our research, employees also consider training and career advancement important. This should come as no surprise, considering the number of Canadian workers who lost their jobs during the pandemic. Not only do today’s workers want to know that their employers are invested in their future, but they also want to know that they are gaining transferable skills that will help them find a new job if the need arises. Employers should consider adding benefits, such as tuition reimbursement or educational credits, as well as creating career advancement programs that include on-the-job training and the ability to move vertically within the company.

job security

Naturally, today’s employees crave job security. Our research shows that 19% of white-collar workers and 16% of blue-collar workers would consider changing jobs if it meant they could work for a company that offers better job security. One of the primary ways employers rate the level of job security is to look at the company’s longevity and financial stability. Companies can also offer benefits, such as financial rewards based on years of service or the elimination of the new hire probationary period, to provide workers with a sense of job security.

could there be a resurgence of the great resignation?

There certainly could be a resurgence of the great resignation if these employees who just changed jobs are also dissatisfied with their new roles. For this reason, employers must take steps to build a better employee benefits package that can go hand-in-hand with the job offer.