The Great Job Migration, also known as the Great Talent Migration, is the tendency of people to shift to “better jobs” and “companies that really care.”
Many have associated the Great Job Migration with the COVID-19 pandemic and believe it’s temporary.
However, there had been an average monthly quit rate increase of 0.10 percentage points each year from 2009 to 2019. It may have slowed in 2020 because of the uncertainty brought on by COVID-19, but many of those projected to quit in 2020 did so in 2021.
And now we’ve returned to the pre-pandemic trend, which American companies will certainly be dealing with for years to come.
This resignation trend was a natural consequence of five factors—retirement, relocation, reconsideration, reshuffling, and reluctance—that were spurred on by the pandemic.
Resignation
In 2021, older workers quit their jobs at an increased rate, and they did so at earlier ages than in previous years. They made these decisions out of a desire to spend more time with loved ones and to focus on priorities that extend beyond work.
And they made the decision to leave with confidence thanks to soaring stock markets and strong residential property values. A significantly older group also left because of their increased susceptibility to serious COVID health risks.
Relocation
Relocation, although a factor, was not as significant a contributor as retirement. The overall relocation rate in 2021 was the lowest recorded for the previous 70 years. Since the 1980s, relocation rates have been on a consistent downward trend.
A disproportionate majority of those who relocated remained in the same location. The most common type of relocation continues to be relocating to a new county within one’s present state of residence, while the least common type of migration continues to be moving to a different state.
Reconsideration
The pandemic has led to a shift in perspective on work, leading to burnout among workers, particularly those in demanding jobs that intruded on their ability to care for their families.
Burnout has occurred notably among frontline workers, parents and caregivers, and organizational leaders. In industries like hospitality, where women comprise the majority of hourly workers, one in three women are considering leaving the workforce, switching jobs, or cutting work hours.
In white-collar industries like consulting and finance, junior personnel have also experienced burnout due to the robust demand during the pandemic, obliging staff to work hard without benefiting from training, mentorship, and client interaction. These experiences may have changed young workers’ tolerance for the demands of these workplaces.
Reshuffling
In many sectors, hiring rates are higher than quit rates, according to an Economic Policy Institute analysis of the Bureau of Labor Statistics (BLS) data done in November 2021. This indicates that high wage growth is luring new applicants to open positions and that many workers are both able and willing to accept sufficiently attractive jobs. As a result, businesses in high-turnover sectors are increasing compensation to replenish their workforce, hoping to boost retention and employee attraction.
Reluctance
COVID-related workplace fears have led many workers to avoid returning to the office. A Pew Research Center survey found 64% of workers feeling uncomfortable returning to the office, while 57% chose to work from home due to COVID exposure. Meanwhile, a Harvard Business Review research shows that many workers are prepared to quit if their employer doesn’t offer a hybrid work option. In a survey of 10,000 Americans, 36% said they would search for an alternative if not provided with a hybrid or remote option, and 6% were willing to quit outright without a new position.
Business leaders must understand the factors contributing to turnover in their organizations and develop specific responses.
Companies with flexibility and resources are more likely to maintain a stable and competitive workforce. Offering benefits that address changing worker needs and demonstrating a commitment to improving long-term career prospects, such as training and tuition reimbursements, will attract and retain talent.
However, the great job migration is no anomaly, and the forces underlying it are here to stay.
Challenges Businesses Will Face for Years to Come
The Great Job Migration is not limited to a particular industry or skill level. Companies across all sectors and skill levels are experiencing high turnover rates, making it challenging to find and retain talent.
Finding and Keeping Good People
Finding and keeping good people in one’s employ in this day and age is a monumental challenge. It is becoming increasingly difficult for businesses to compete with other organizations that provide better pay, perks, and work-life balance for their employees.
As the US and other countries begin to recover from the disruption caused by the pandemic, businesses continue to face a significant obstacle as they struggle with recruiting and keeping talented employees.
The High Cost of Replacing Employees
The cost of replacing employees who leave is high, as companies must invest in recruiting, hiring, and training new employees. Location can also be a factor, as companies may be in areas with a shortage of skilled workers.
The loss of experienced employees can negatively impact productivity and profitability, as they leave with knowledge, skills, and relationships, making it challenging to find suitable candidates for open positions.
A Paradigm Shift in Employee Engagement
Companies must rethink their people strategy to attract and retain talent. Offering flexible work arrangements, better benefits, and growth opportunities is crucial. A positive candidate experience, including clear communication, a streamlined application process, and positive interviews, is essential.
If the cost is too high for a business to replace, hire, and retain people as well as create a positive work experience, what can a business do to grow in the coming years?
It could be time for a business to consider the competitive global talent market.
iSupport Worldwide Helps Bridge the Gaps
iSupport Worldwide can assist businesses in overcoming the challenges posed by the Great Job Migration by providing customized outsourced solutions that are adaptable to the precise commercial requirements of its customers across all industries, verticals, and languages.
iSupport Worldwide offers offshoring solutions that can assist with talent migration. It can assist businesses in meeting the ever-evolving requirements of their staff members by assisting those businesses in creating working environments that provide employees with a sense of accomplishment, meaning, flexibility, and new challenges.
In addition, iSupport Worldwide can assist businesses in addressing burnout and placing a higher priority on the well-being of their employees by assisting in the development of policies and programs that promote a healthy work-life balance, mental health, and general employee wellness.
All in all, iSupport’s customizable offshoring options, its focus on employee requirements and well-being, and its capacity to handle burnout are some of the ways how we assist businesses in filling the holes created by the Great Job Migration.
Let us help you attract new talent, retain them, and fill the voids left by those who leave the company.