Why Are Workers Leaving the Job Market?

Employers across the world are experiencing labor shortages like never before – according to the U.S. Bureau of Labor Statistics, 4.5 million Americans quit their jobs in November 2021. Industries such as food services, healthcare, manufacturing, and transportation have seen the largest increase in employees leaving. Because of this trend, employers everywhere are searching for new ways to implement workforce initiatives to fill and retain positions.

Workforce trends

Are people burnt out and looking for a break, or do they have a strategic plan? If you look at the survey GoodHire conducted, employees are tired of the nine-to-five, five-days-a-week grind. As a result, “employees are now pondering the meaning of work” which has led to the Great Resignation. You may have seen organizations try and update their rewards and benefits or offer more money to entice new applicants – this is happening across the board applying to all industries and most job opportunities.

Why are people leaving?

According to an Indeed survey of people who “voluntarily resigned from at least 2 jobs since March 2020”, they said that the “pandemic made them feel life is too short to stay in a job they weren’t passionate about.” Many predicted that several jobs would be “eliminated” by Covid 19 however, the opposite is proven true. With the use of technology, many roles just shifted, changed, or moved. This shift created an explosion for roles such as software engineering, data science, and AI – driving wage growth due to demand.

In addition to moving away from jobs that did not create passion, people are also moving to earn more money. ‘Job hopping’, which has always been looked at negatively by HR (Human Resources) and Talent Acquisition professionals, is now being used as a tool to leverage earning more from desperate-to-hire organizations that will throw money to secure a role.

A solution to the problem

If you are currently hiring or losing employees fast, it is time to discover, or deploy, your Employee Value Proposition (EVP), understand your talent acquisition priorities, focus on culture, adapt to change, and support your teams in ways that will drive success. This is also an opportunity to promote from within by initiating reskilling and upskilling opportunities for employees who wish to participate. Upskilling, or reskilling, is a smaller investment than hiring and training a new employee. As you reskill your employees, you create a more well-rounded, cross-trained workforce, and increase your team’s effectiveness.

Working with a recruitment partner can be beneficial if you are experiencing challenges sourcing, hiring, or retaining employees. Recruitment Process Outsourcing (RPO) partners work in partnership to set long-term goals with clients and value long-standing relationships, rather than short-term, that produce tactical results. The benefits of working with an RPO partner can be discovered in a range of business areas, from cost reduction to improved quality of hire.

Coit Group has extensive experience in building and expanding recruitment strategies on a local and global scale. Read our case studies or contact our experts today.