The term "Great Resignation" describes a phenomenon that was first observed in the United States in early 2021 and later spread to other industrialized countries, including Germany: a significantly higher rate of voluntary resignations by employees compared to previous periods. The term was primarily coined by US Professor Anthony Klotz. This wasn't simply about normal job changes, but rather a broader movement where people left their existing employment to pursue new career paths, reinvent themselves, or seek better working and living conditions. This phenomenon emerged in connection with the impacts of the COVID-19 pandemic, which prompted many people to reconsider their priorities and their relationship with work.
The causes of this development are complex and multifaceted and cannot be attributed to a single factor. Some of the key driving forces included:
- Pandemic-Related Reflection:The experiences during the pandemic – whether through health risks, increased work-related stress (burnout), confronting existential questions, or even positive experiences with greater flexibility while working from home – led many people to reevaluate what truly matters to them in both their personal and professional lives.
- Changed Expectations:The desire for a better work-life balance, greater flexibility in terms of work location and hours, meaningful work, appreciation, good development opportunities, and a positive and inclusive corporate culture has gained significant importance.
- Labor Market Conditions:At the same time, many industries were experiencing a tight labor market with numerous job openings (partly intensified by Germany's skilled worker shortage). This gave employees greater bargaining power and confidence in their ability to find better opportunities elsewhere.
- Decisions Made in Retrospect:Some of the layoffs may also be attributed to decisions that were initially postponed during the uncertain early stages of the pandemic.
The Great Resignation poses a significant challenge for businesses. Increased turnover not only results in high recruitment and onboarding costs but also leads to the loss of valuable knowledge and potentially creates a heavier workload for remaining staff. To survive in this environment, employers must adapt their employee retention and recruitment strategies while placing a stronger focus on addressing their employees' needs. This includes offering competitive salaries as well as attractive and flexible benefits that accommodate individual life situations. Investments in positive corporate culture, flexible work arrangements, clear career paths, professional development opportunities, and a genuine commitment to employee well-being have become crucial. The Great Resignation has thus accelerated the shift toward a more employee-centric workplace.