What is the ‘Great Resignation’:

  • In the last several months, many people are quitting their jobs resulting in the era of Great Resignation. Many countries are facing this phenomenon, but the majority of resignations happened in the United States. In April 2021, approximately 40 lakh employees in US have quit their jobs.
  • Anthony Klotz, a professor at Texas A&M University predicted this in 2019 and coined the term – ‘The Great Resignation‘.

Causes of the Great Resignation 2021:

  • Many people are now questioning their career choices. COVID pandemic taught us so many lessons. It changed our perspective on life. Now people are feeling that life is uncertain and have realized the value of time. So, several employees have decided to work for fewer hours and to avoid the long commutes to spend more time on their personal lives.
  • Many employees, especially the ones who are working in the healthcare industry faced burnout due to increased workload and hence so much stress. To prioritize their mental health, many employees have decided to shift to companies that give realistic deadlines.
  • Some people felt that it is not wise to postpone their trials for the jobs they really like. So, they have quit their jobs to pursue their dream jobs.
  • The majority of resignations are from employees within the age bracket of 30 to 45 years. After years of working in the same field, they may be vexed by monotony and probably want to try new careers or entrepreneurship.
  • During the pandemic, several companies gave work from home options to their employees. Now, companies are reopening and hence calling the employees back to offices. So, people who liked work from home facilities are searching for jobs that continue to provide them.
  • Some people benefitted from the work from home option, but for some others, it means increased workload, the reduced balance between personal lives and professional lives. As schools were shut down during the pandemic, working parents had to take care of their children while handling the heavy workload in their jobs. So, this resulted in burnout for many. Even in these modern times, most of the childcare and household responsibilities are expected to be done by women, many women faced exhaustion due to working from home. And hence, the era of Great Resignation, 2021 witnessed more resignations from women than men.
  • Some employees are feeling undervalued at their work. They are expecting better pay, appreciation for their hard work, flexibility and more happiness.
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Consequences of the Great Resignation 2021:

  • Companies are facing labour shortages. They are spending so much money to recruit new employees and to train them.
  • Several employers are redesigning their work environments to attract the best talent and to retain their existing employees.

What companies are doing to retain their employees:

  • Several companies are now trying to provide better pay, more flexibility in work hours, the choice to choose where to work to retain their employees.
  • To improvise the work environment, employers need to know why their employees are stressed. So, some employers are trying to know their workers’ expectations and the causes of their stress by taking the feedback, and are working to incorporate them into the work ecosystem.
  • To keep their employees happy, several companies are offering many things such as more vacation time, games at the office etc. Games can also increase the sense of community, prevents the feeling of isolation and hence can help in retaining their employees.
  • Employers want to invest money in keeping their employees happy instead of spending the same on recruiting new people and training them.


People are now questioning their career choices after the world was hit by the COVID pandemic. Many employees want to come out of the rat race and are choosing jobs to suit their personal preferences. This resulted in the phase of Great Resignation. This forced companies to understand their employees’ expectations and to improvise the work environments.

Your Turn…

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