Although spurred by the Covid-19 pandemic, the Great Resignation has roots in problems that started much earlier. Low wages, no advancement opportunities, neglected mental health and work-life balance, and other factors only worsened after the pandemic hit and led to the highest share of people leaving their jobs in years.
However, despite the difficult circumstances, tech industries are blooming and discovering new opportunities. What are those possibilities, and how can your tech company benefit from the Great Resignation?
Why is the Great Resignation happening?
The Great Resignation is an unprecedented mass exodus of employees. Although it started during the Covid-19 pandemic, its foundations lie much deeper in the poor conditions provided by the labor market. In fact, the share of workers leaving their jobs has been growing, culminating in 2021. Why do people give up on their work even during such turbulent times?
According to Pew Research Center, the top reasons for workers to leave their jobs are:
- low wages,
- no career advancement opportunities,
- a disrespectful work environment,
- lack of work-life balance, including childcare issues and overtime,
- working hours flexibility issues,
- not good enough benefits,
- relocation issues.
As you can see, employees struggle with many problems regarding rigid, inflexible, and unethical workplaces. Fortunately, many of them can be easily solved. The tech industry already provides remedies for dissatisfied and tired employees.
What does the Great Resignation mean for the tech industry?
In the tech industry, the Great Resignation is also called the Great Upgrade – and this happens for a reason. While accommodation, leisure, or hospitality suffer from the highest quit rates, the U.S. Bureau Of Labor Statistics shows that retail trade and manufacturing companies experience the greatest growth.
Moreover, the Great Resignation movement is apparent not only in the USA but also in Europe. Destabilizing war in Ukraine, dynamic inflation, and economic uncertainties force people to search for career advancement opportunities. According to McKinsey & Company, about 30% of residents of Austria, Belgium, France, Germany, Italy, Poland, Portugal, Spain, and Switzerland are expected to quit their jobs in the next 3-6 months. At the same time, there are 9 million IT specialists employed out of the 20 million needed in 2030.
Conclusions are obvious – some European employees leaving their jobs will gravitate naturally towards the IT sector. They’ll be tempted by better working conditions and benefits. It is a perfect opportunity for tech companies to acquire good specialists from Central Europe willing to become software engineers and work remotely.
What do IT employees expect?
The IT sector constantly attracts newcomers. Why? Because it is famous for great job opportunities, interesting career advancement possibilities, flexible working conditions, and very high wages. Although the entry threshold is usually high, those who stay committed can become great IT specialists, team leads, and even managers. What’s more, experience, knowledge, soft skills and an unconventional approach to solving problems brought from other industries can become additional, shining assets.
However, IT employees expect support in learning the new industry. So, how can you encourage talented and proactive newcomers to seek employment at your company? The possible ideas and investments are providing them with hands-on:
- tech schools,
- mentorship programs.
Moreover, they will repay you with commitment and hard work within a friendly and healthy environment, where they do not have to worry about money or disrespectful working conditions. By contributing to your employees’ well-being, you can avoid the consequences of the Great Resignation and reap the benefits.
What are the effects of the Great Resignation on recruiting?
The Great Resignation is also affecting recruitment processes. More employees seek better career opportunities, and most HR professionals are exhausted and challenged to interview and select top candidates. This means that recruiters must rethink strategies and understand what will attract and retain talents.
So what are the best recruitment strategies you can include in your process?
- improving job satisfaction – for example, by keeping track of Employee Net Promoter Scores and investigating what contributes to low scores,
- answering employee needs – providing flexible work hours, menstrual leave, hybridization of work, or other expected perks can massively boost the loyalty of your people and reduce staff turnover,
- providing training – addressing your employees’ ambitions and equipping them with necessary competencies is a recipe for a strong, proactive, competitive team,
- extra benefits – additional funds for development, local volunteering program, team integrations, language lessons, and other perks can turn your company into a comforting and appreciated workplace.
How to stop the Great Resignation?
There is probably no way to stop Great Resignation. However, your company can overcome the risks and dangers by taking care of the most valuable resource company will ever have – good and promising specialists. You can also use the opportunity to benefit from hiring top specialists from remote locations. They are not only ready to boost your projects with top skills but also stay loyal.
In these turbulent times of aftermath of the Great Resignation, the rate of employees leaving their jobs is the highest in years. Read our next article and find out more about the costs of employee turnover and the ways to prevent it.
If you’re currently looking for a reliable partner who will support you in your search for top-class software engineers – feel free to contact us. At inhire, we will provide you with the best candidates from European locations ready to get involved in your process. Let’s talk.