My friends at Visier and Emsi released a report earlier this year focused on resignations and remote work. It is an interesting study on the changes in dynamics of the current workforce. Last week, I shared the most recent recruiting analytics and some insights on the pending Great Resignation. In this post, I’d like to talk more about an interesting trends in the most recent Resignation Data.
Female Resignations Spiked
Recent data shows an increase in female resignation rates year over year for the past three years. It’s likely that the majority of recent female resignations is due to the staggering amount of parents who left the workforce as the pandemic took form. The cancellation of school and daycare services forced parents (especially women) to become full-time, at-home caretakers. According to Gallup analysis, COVID affected the workforce who had young children to take care of. It showed significantly more women than men chose to stay at home and care for children who were not being home-schooled as a result of school and childcare closings.
As employers continue to learn how to attract talent in the pandemic era, firms that focus on the ability to balance work and taking care of children at home may have an edge. Many companies are still attempting to balance gender equality as part of their DEI programs and should spend time exploring this benefit to garner more talent in the workforce. A Harvard Kennedy School study found that companies with an equal representation of men and women perform better financially than male-dominated firms-so it’s not just the right thing to do, it’s good for business.
Resignation rates are increasing for mid-career
professionals (ages 25-45) and managers
When most hear that resignation rates are increasing, the assumption tends to be those “troublesome” newer generations in the workforce. This assumption would have been correct in 2019, however, there was a decrease in the number of resignations for age groups 20-25 in 2020 and the trend continues in early estimates of 2021. We’re not talking about a five to ten percent decrease but 25% decrease in the number of resignations in this demographic.
According to Visier, this pattern persists regardless of gender. The chart below shows the resignation rate between male and female in this demographic. Both men and women ages 20-25 (entry-level employees) have chosen to stay in their current positions while other age groups have shifted.
The real increase in resignation rates is happening in the 25-45 demographic. I shared in a recent post on the Great Resignation how organizations are bracing for a major shift in the workforce. Workers who have felt trapped by the pandemic could potentially break out of this pattern if the market continues to strengthen. This trend has begun to creep into the analytics over the last few months, as indicated in the charts above, but we haven’t seen the full brunt yet. Typically, the 25-45 demographic is a more stable workforce so to see the increase in resignation rates could show signs of trouble for organizations already struggling to keep their workforce.
What do you do? 🤔
I’ve shared a couple of posts on how to combat this issue. Here’s a brief list of reading choices if you’d like to learn ways to stay ahead of your competition in the talent war.
- 3 Things to Keep Your Workforce during the Great Resignation
- Keep candidates engaged by treating them like a VIP
- Rethink, Reskill and Redeploy your workforce
- How Leaders can retain top talent
Like all things, resignation rates ebb and flow. With a history of spiking during the summer months, employers may want to consider what their strategy is if this trend continues in 2021. (Visier) Talent leaders and professionals will need to remain engrossed in the employment data and stay close to their hiring managers to change the strategies and remain competitive.
and Sprint Recruiting
I joined the HR industry in 2004 after working as a sales leader in the Financial Services Industry for eight years. After spending his first couple of years in HR trying to fit in, I found my voice. Now I leverage all of the things I once hated about HR to become a consultant and invaluable partner to the businesses I support. I contribute to the HRGazzette and to DataDrivenInvestor on Medium. WARNING: my writing style is raw and in your face, not what you would expect from an HR executive.
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