By now we’re sure you’ve heard of “The Great Resignation” happening globally, and it’s not just a hypothetical idea. In fact, according to a Microsoft survey of over 30,000 workers across 31 countries, 41% of workers across the globe are considering leaving their jobs.
What is the true cost of resignation? How does this affect your business and what can you do to mitigate the situation and prevent it from happening to you? With this article, we will help you turn the situation around and use The Great Resignation wave as an opportunity to retain and hire even more top talents and become an even more attractive company to work for in the process.
The great resignation worldwide was not surprising to happen amidst the pandemic. Companies are challenged by the economical decline due to lockdowns in most countries and in turn, has affected their retention programs for their employees.
Various telltales regarding the great resignation in other parts of the world are "Lockdown Generation" (June 2020), "Zooming Our Lives Away" (June 2021), and "13 Suggestions on Sanity" (June 2021). A common theme in all these is the lack of flexibility of companies to offer a safer, remote work setup for all.
Another study commissioned by Slack shows a steady increase in workers’ openness to new jobs every quarter since June–this covers employees from Australia, the United Kingdom, the United States, Germany, Japan, and France. "They're rethinking — not only in terms of things like compensation — but also, clearly, things like flexibility, purpose, balance," said Brian Elliott, a senior vice president at Slack.
According to Darwin Rivers, the founder of the Philippines HR Group, another reason that also contributed to the great resignation is the self-realization of people with what they want in life. Moreover, Gen Z adults and Millenials highly value their work-life balance, and now that they experienced the flexibility remote work offers, they are more than willing to quit their jobs when companies force them to work onsite.
Resignation may be one of the costliest things to happen to companies. When people leave, companies experience a loss in talent, industry knowledge, and know-how, and a momentary shortage in manpower during transition periods. On top of this, every resignation incurs an additional cost to replace and hire a new employee. With costs also going way beyond financials, resignation requires additional time, effort, and a multitude of admin work. With all of these in mind, we get a clearer picture of the true cost of each employee’s resignation.
The worst scenario is bleeding out top employees at the same time. This is why companies globally have become more and more willing to adjust and adapt to the changing landscape of work.
The Philippines was not spared from this phenomenon. There was a 176% increase in voluntary resignation across all industries during the pandemic according to a recent study conducted by Sprout Solutions, a Filipino SaaS Company.
“The average voluntary attrition rate in 2020 was 1.31 percent. In 2021, it rose to 2.27 percent, a 73 percent increase in average voluntary attrition across different industries, that’s almost double,” said Kislay Chandra, Sprout Solutions’ Chief Product Officer.
The catch? Most of them are looking for secure and stable remote work. Filipinos became more eager to find jobs and even recorded the lowest employment rate when the pandemic happened. This is mainly because people want to stay in their provinces or at home with their families. And because the country is one of the top outsourcing destinations worldwide, they can find a suitable job for their lifestyle easily.
What does this mean for you? It means that employees are resigning from their jobs and looking for 1 thing in common: Flexibility in working conditions.
Considering shifting to a fully remote/ hybrid working setup can become a major advantage and game changer to your business even in these challenging times if you haven’t done so already. However, what would set you apart from all the businesses adapting to the changing times is offering secure working arrangements for your employees. This then becomes not only a matter of flexibility to attract employees but also a matter of keeping people for the long haul.
With the global labor market continuously evolving, businesses still struggle to enter foreign markets securely and legally to create a robust offshore workforce. Having an Employer of Record (EOR) removes the need to register as a business entity in the Philippines.
This means when you Remotiy, you can ensure legal compliance for your new or existing team in the Philippines all in a matter of days. We minimize the legwork required from you and save you from all the administrative headaches you would have had to go through to begin to employ legally in the Philippines. We also help remove the risk and HR administrative headache of having to manage multiple individual contractors halfway across the globe.
With our EOR services, we support you with HR admin, payroll, legal compliance for your team, and more. We also provide end-to-end assistance in employment from helping you create job descriptions to see the employment process all the way through. Our service also includes an INSPIRE program that helps build a culture of remote team engagement and well-being.
If you can provide a secure remote working environment for your employees, and provide them the same benefits they have left their previous jobs for, you can ride the wave and shift the phenomenon to your advantage by retaining your current employees, becoming even more attractive to employees on the lookout for opportunities, filling up gaps in your team, and keeping them in the long run.
For more information about our services, you can check out our website or send us an email at firstname.lastname@example.org.
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