The True Story of 2021 was Not “The Great Resignation”
The True Story of 2021 was Not “The Great Resignation”
... a more accurate narrative would be “The Great Resolution”
Once upon a time... in 2016-2019, there was a stagnating workforce in America. Every day 67% of the 100m strong FTE workforce came to work disengaged (Gallup - 2016 State of the American Workplace).
One day, a pandemic changed everything: extended families were separated, work-life barriers came down and people began to re-evaluate what is truly important in life and work. Companies were forced to manage their employees in a radically different way.
At first this was a major shock to the system, but then people began to react and, in Q4 2020, opportunities began to emerge. Because of that, record numbers of FTEs have taken their lives and careers into their own hands in a way they only dreamed about when they were stuck in their old routine…
This story is still unfolding but I am confident of two things.
The headline should not be the resignations - we are seeing intense levels of resolve and decisiveness among the FTEs of the American economy.
The old powers who resisted change in past years must overcome their negative reaction, drop the "Great Resignation” narrative and adapt to a newly decisive generation of employees.
Why are we calling the greatest job mobility in recent history “The Great Resignation”?
Maybe we have become conditioned to bad news. Or perhaps it’s hard to recognize good news when it slaps you in the face with a resignation letter.
The good news angle: the other side of a resignation is a new hire. And, exercising individual freedom in the workforce has never been more popular.
New hires are full of opportunity, fresh pairs of eyes, new relationships and a hopeful lease of life at work. Half empty glasses everywhere are being swept aside by doers and optimists. The recruiting industry is having an historic year.
Perhaps it’s the idealist in me but I find it all thrilling. Sure, there will be new winners and losers but I believe millions of individuals recognizing their talents and taking confident control of their careers can only net good things.
The “Great Resignation” or “Big Quit” is actually one of the greatest, most encouraging news stories this century. It’s not like everyone has quit to live in a van and recede from civilization, though there are a few Nomadland extras still out there. N.B. Unemployment is at a pandemic low this month (4.6%).
We will look back on 2021 as the year America took a giant leap forward. For perspective, cast your mind back to 2016…
In a context of dramatic political upheaval at home and abroad, the establishment were shocked by how disconnected they had become from the general population. Influential people in business were perplexed by the challenge of hiring, retaining and engaging millennials, many of whom were now beginning to move into leadership and managerial roles, bringing with them new ideas about transparency, challenging old practices, loyalty and purpose.
I recall Gallup’s 2016 State of The American Workplace lamenting widespread disengagement at work as the biggest issue facing the economy. They reported only 33% of over 100m full-time employees (FTE) were engaged at work. Just 1 in 3 FTEs were enjoying their work, improving their companies and making positive contributions to the economy. 2 in 3 were either actively disengaged with their work or simply just there, going through the motions.
It wasn’t just the politicians, newspapers and pollsters that had taken their fingers off the pulse. The approaches to management pushed by expensive business schools and consulting companies were failing badly. Only 21% of respondents in the 2016 Gallup study said that their performance was managed in a way that motivates them to do outstanding work.
The American workforce was in need of an almighty shakeup. In tech speak, we needed to click ‘Run’ and type ‘Defrag’.
Employees who are disengaged but feel stuck at work clearly don’t enjoy what they are doing. And yet they often stay for the pay or even despite low pay in fear of failure. Pre-pandemic this was so widespread as to be tantamount to a major drag on the economy. Disengaged workers often think there must be more to life but can’t shake the inertia of their daily commutes, familiar work, colleagues and the old routine. They might interview but they often lack the true willingness to change jobs.
I believe these factors gained a foothold after the financial crisis of 2008/09, became deeply ingrained in the economy and persisted in hearts and minds until last year. That negativity is being replaced by a new risk-taking optimism among employees. They always wanted better and now they are making moves to secure that.
Has the COVID-19 crisis slayed the sense of entitlement that emerged after we bailed out the banks?
What I am sure of is that the COVID-19 crisis has sparked an almighty awakening of disengaged employees. It has been a wake up call to our short time on this planet, a call to a better career and a more impactful life. As the world of work has adapted to the new normal, change has become infectious.
It is no surprise that the most significant group in the “Big Quit” are in the 30-45 age bracket.
In 2020, people were questioning the meaning of life. In 2021, they have realized that work is possibly the most reliable source of meaning, purpose and freedom. Tens of millions of FTEs have decided they want to be more engaged at work and they are taking the matter into their own hands.
Just imagine an economy where the right people are in the right jobs in the right place at the right time. You are not picturing 2016 but you may just be looking ahead to 2022...
References
https://www.forbes.com/sites/kaviguppta/2017/03/08/gallup-american-workers-are-unengaged-and-looking-elsewhere/?sh=5699d7143e8c