What is The Great Resignation?
The “Great Resignation” is a term coined by Professor Anthony Klotz, an organizational psychologist at Texas A&M University, to describe the ongoing labor trend of record-breaking monthly resignation rates in the US economy.
When Did the Great Resignation Begin?
Beginning in early 2021, the BLS has reported an all-time high “quits rate” for five months—March, April, August, September, and November—with near-records for the months in-between. Specifically, there have been over 4 million resignations every month since July of 2021.
What Is the Primary Cause of The Great Resignation?
Since May, the “Great Resignation” has made headlines with reports mostly crediting COVID and compensation for the volatile labor market. According to the Society for Human Resources Management (SHRM), the compensation narrative is compelling for employers, many of whom responded by raising base pay and improving benefits in 2022.
Company culture may also be a factor. Employees are more likely to enjoy their time in the workplace if they are comfortable in the company culture. Additionally, employees are more likely to stay and recommend others to the organization.
Related Terms: Employee Retention