The pandemic and the increase in remote and hybrid working has changed the way many people view their lives and their jobs. 4.4 million people quit their jobs in September, according to the Department of Labor. The US Department of Labor said that 531,000 jobs were added to the market in October, which was a significant increase over September. The largest amount of jobs were in professional services, leisure and hospitality, manufacturing, transportation and warehousing.
There are a number of reasons why employees are quitting at this time:
1) Quality of life- due to work shortages, many people who are employed are working too many hours and are having burnout. Quality of life is probably the most significant reason why people are resigning.
2) After working remotely people have begun to rethink their priorities, and do not want to spend so much time traveling to and from work.
3) Childcare is another issue. Many people have lost their help at home and need to be home for their children.
4) Compensation is another key issue. With the job market being a “candidate’s market”, whereby there are so many job openings and so few people, they feel it is an opportunity to get higher overall compensation. Companies are offering sign on bonuses, higher hourly wages and higher salaries all over the country.
5) Government subsidies have provided enough money so that in some cases, it didn’t pay to work, however many of the subsidies have been reduced or been eliminated so that this should not be an issue anymore.
These are just a few of the reasons for people leaving their jobs.
To retain and attract new employees, companies need to be more flexible in their work arrangements and have to consider revising their compensation plans as well.
As experts in the field of Human Capital and working with companies throughout the U.S., we can assist you with your hiring and retention needs.
Feel free to contact Michael F. Rosenblatt for a free confidential conversation on how we may be able to assist your firm at Michael@questorg.com