The Great Resignation, Quiet Quitting, and the Changing Way of Work

Many predicted that once COVID-19 was under some semblance of control that the job market would rebound.  And predictions of stock market rebounds were contingent on that. But, for the most part, it hasn’t happened. So far, roughly one-quarter of S&P 500 companies missed revenue and profit expectations during the second quarter of 2022.

With remote work possible for many employees during the height of the pandemic, workers are no longer accepting the old working conditions that demanded longer hours, working harder, and fearing cost-cuttings and layoffs.  They relished having more autonomy and flexibility while working remotely, and many reported being equally productive, or at least “adequately” productive.

However, the continued labor shortage saw more than 10.7 million job openings at the end of June, or nearly 5 million more vacancies than available workers.  Some sectors are especially hard hit, such as health care where remote work isn’t possible, which continues to experience high degrees of burnout.

The Great Resignation

Faced with a demand to return to in-person work, long commutes, increased costs associated with commutes, and other expenses associated with office life (lunch expenses, dry cleaning, child care, etc.), some employees tendered their resignations, even if it meant settling for jobs at much lower wages or salaries that offered more flexibility.

The Quiet Slowdown

This is the phenomenon where some employees are dialing back on how much time and effort they devote to work.  While this may not leave a job unfilled, it can play havoc with productivity and morale among the rest of the employees.

In a recent Korn Ferry article, “The Conscientious Quitter” by Gary Burnison, CEO, talked about reaching out to leaders of various organizations to get a pulse on quiet quitting and the continued influence of work/life balance that preceded the pandemic.  Two responses stood out for me: “Employees quit for a reason – it’s up to leaders to create a sense of purpose.” And “Too much has changed – this is here to stay. And we need to embrace it.”  Our email last month focused on the importance of connecting every employee with how they contribute to a higher purpose in their organization.  The second quote leads into our next topic.

The Changing Way of Work

For years, some managers have adamantly refused to consider remote work, job sharing, alternate work schedules, and other options creating more flexibility and increasing autonomy.  The pandemic may have forced them to reconsider for a time, but is its waning cause for a total return to the old way?

Are you familiar with a new resource, the Job Quality Toolkit, https://www.commerce.gov/work-us/job-quality-toolkit, a publication produced in partnership with The Baldrige Performance Excellence Program, the Department of Commerce, and the Department of Labor? In the research they conducted, they identified eight drivers of job quality and provide strategies, actions, and sample resources for each one.

1. Recruitment & Hiring

2. Benefits

3. Diversity, Equity, Inclusion, and Accessibility (DEIA)

4. Empowerment & Representation

5. Job Security & Working Conditions

6. Organizational Culture

7. Pay

8. Skills & Advancement

If you’re currently encountering great resignation and/or a quiet slowdown, this resource might be just what you’re looking for to counter these recruitment and retention challenges!