In August 2021, more than four million Americans left their jobs. A CareerArc/Harris Poll indicated that up to 23% of Americans are planning to leave their jobs over the next 12 months in 2022. Thirty-two percent of those people are leaving because they want better working conditions while 30% are burnt out and 28% want higher pay.
“While we are seeing lots of people make very different career and lifestyle choices than we might be accustomed to, I’m not convinced this is a ‘Great Resignation,’” said Charman. “It’s a way to make headlines, but the evidence shows this has been fermenting for years, with the numbers of people disillusioned with the status quo steadily growing from a long time before the pandemic.”
Charman says that there are broadly two types of people choosing to leave their jobs from their data.
“First, those that are looking for a lifestyle change, where pay isn’t the primary factor but whether they can travel, spend more time with their family, pursue passions or hobbies, or even reduce the stress levels in their current role,” said Charman. “The second type are those that see this as an opportunity to increase their pay or gain promotion elsewhere.”
Charman says that reward analytics suggests that type one is generally higher income than type two.
“The dynamic between employer and employee has changed in these examples. Companies can’t just rely on the fact they need a job to pay the bills. Businesses have to respond by offering incentives and models that are relevant to them,” said Charman.
Charman says that the main problem is that larger companies aren’t set up to respond in the way they need to.
“They don’t have the data, insight, or the structural agility to offer a new working model or make an informed decision on how much they can realistically pay or safely modify pay without transgressing rules on grades, pay equity, labor agreements, etc.,” said Charman. “The smaller and more dynamic businesses have an advantage here.”
“The result of this is that people want something different, whether that’s a better lifestyle or better pay,” added Charman.
Data can create the right rewards
“With data, we can not only change the dynamic of the Great Resignation as employers but also get ahead of the curve with pay equity and preparing for the future of work,” said Charman. “Most companies are unable to get a precise understanding of the current rewards and benefits structure across their business, so data and technology is the only tool that can help develop a proactive and strategic approach.
Charman says that data can change the dynamic of the Great Resignation as employers but will enable companies to get ahead of the curve with pay equity and prepare for the future of work.
Charman says one example is that by knowing how much people across the organization are being paid, the value of all the rewards they receive, and understanding precisely what benefits people want, packages can be tailored in a far more strategic way for those that are looking for more pay.
“Directing every benefit into their pay packet is what some people want. But to know how much you can redirect from rewards that have an obvious economic cost to others, such as health or wellbeing that might be purchased via group schemes is critical,” adds Charman. “Then tracking what that means back to the individual – to ensure pay equity across your business – requires all that information is digitized, up-to-date, and available in real-time.”
Charman says that for people who want a change of lifestyle but are valuable as loyal and capable employees, this data is essential in deciding how to offer a package that works for them. “Maybe a part-time or job-sharing solution.
“If the decision is to change their skills, you might split their roles to allow that skills development for 25% of their time working for another department, or even a different company,” said Charman. “These are the more sophisticated strategic approaches that can be used to address the Great Resignation, but they can only be done with the help of reliable and up-to-date data combined with the technology to support the decision-makers in the business.”