It has been a few weeks since our associate partner Rik last wrote a blog in his series about trends in internal communications and digital collaboration. But don’t worry, he hasn’t resigned.
Post-lockdown blues
I ended my previous blog about trust with the astounding statistic that 60% of American companies are spying on their own employees. This lack of trust is undoubtedly a factor in the sixth trend I am covering: the Great Resignation. This expression denotes large groups of people quitting their jobs after lockdowns.
While this seems to be happening more in the US than in Europe, Microsoft’s 2022 Work Trend Index reports that 43% of employees worldwide are somewhat or extremely likely to change jobs this year. Research by Oracle and Workplace Intelligence reveals that no less than 76% of Dutch employees say they are ready for a new job, although that can also be within the same organisation.
The ins and outs of the job market
Big differences remain, however. Research shows that there is actually not much labour mobility in the Netherlands: people are staying put.
This may well be because the Dutch enjoy extensive job protection when in permanent employment, as do most other Europeans. They are obviously loath to give this up to start somewhere else on a fixed-term contract, although the currently very tight labour market gives them plenty of choices.
But also in Europe, work has become more precarious over the past years. Or rather, it has become quite precarious for ever-larger groups of (young) people on zero-hours contracts, in endless temp jobs, or in forced self-employed arrangements. The developments in the US show what this gig economy does to employee engagement and loyalty.
Over and out
Another meaning of ‘resignation’ is giving up, not seeing a way out. The Oracle research shows that 67% of Dutch people feel stranded in life. According to a McKinsey report, almost half of employees worldwide feel at least somewhat burned out. These numbers have increased dramatically due to the pandemic. People are worried about the future and re-evaluating what is important to them.
Microsoft even says that “employees have a new ‘worth it’ equation” and that 53% of them are more likely to prioritize health and wellbeing over work than before Covid. If you are not sensitive to these changes as an employer, you risk rising burnout rates and employee turnover.
To avoid a Great Resignation at your organisation, much of what I wrote earlier in this blog series applies: redesign work to take away stress, offer good prospects and learning opportunities, and create a safe and trusting work environment.
Conclusion
Although Europe doesn’t (yet) experience the employee turnover rates seen in the US, engagement and loyalty are dangerously low, especially since the pandemic. Organisations should be sensitive to their employees’ new perspectives and needs.
In the next blog I explore exactly what is needed to do that: virtual leadership.