WEBVTT - The Forever Resignation Will Be a Test for Employers

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<v Speaker 1>It's Monday, ma I'm Oscar Rome Mirrors from the Daily

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<v Speaker 1>Dive podcast in Los Angeles, and this is reopening America.

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<v Speaker 1>The number of Americans that quit their jobs during the

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<v Speaker 1>pandemic spite and it could be a permanent fixture on

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<v Speaker 1>the job market. This has led to more opportunities for employees,

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<v Speaker 1>but for employers it's been a nightmare. They're dealing with

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<v Speaker 1>high turnover and how to keep workers happy. Simply offering

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<v Speaker 1>they work from home model doesn't work anymore. Aki Itto,

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<v Speaker 1>senior correspondent at Business Insider, joins us for the Forever resignation.

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<v Speaker 1>Thanks for joining US Hockey, Thanks for having me. I

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<v Speaker 1>wanted to talk about the state of work in the

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<v Speaker 1>country right now. Obviously, throughout the pandemic, we heard a

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<v Speaker 1>lot about the great resignation, people leaving their jobs looking

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<v Speaker 1>for better working conditions, better pay. A lot of work

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<v Speaker 1>from home is what people were really looking for. That

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<v Speaker 1>figures a lot into what's going on right now. But

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<v Speaker 1>what we're seeing right now is a new report saying

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<v Speaker 1>that high levels of resignation could be a permanent fixture

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<v Speaker 1>right now. The forever resignation, I think is what you

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<v Speaker 1>called it. So for employers. It's a bad thing, right,

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<v Speaker 1>they have to transition, they have to figure out how

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<v Speaker 1>to operate here. For employees, they've never had more power

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<v Speaker 1>than they do now. So it's a really interesting thing

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<v Speaker 1>that's going on right now. So Aki tell us a

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<v Speaker 1>little bit about it. So, I mean, we've been seeing

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<v Speaker 1>incredibly high attrition rates at companies across the country for

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<v Speaker 1>at least a year now. People are calling this a

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<v Speaker 1>great resignation and executives are just, you know, really tired

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<v Speaker 1>of it. It's incredibly expensive to hire right now. They're

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<v Speaker 1>trying so hard to retain their existing employees. It's exhausting,

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<v Speaker 1>and so they're asking when it's just going to end.

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<v Speaker 1>But what one research from Gardner predicts is that it's

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<v Speaker 1>never gonna end, That a high turnover is just going

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<v Speaker 1>to be a permanent thing in the American workplace because

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<v Speaker 1>of remote work, which isn't going away even after the

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<v Speaker 1>pandemic um. So it's a really interesting prospect. You know,

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<v Speaker 1>we don't know if this is going to be true,

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<v Speaker 1>and so the future comes. But I found the prediction

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<v Speaker 1>incredibly compelling, and they have some interest in data to background,

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<v Speaker 1>So for a little perspective, right, they say that it's

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<v Speaker 1>going to remain higher than before the pandemic. The rate

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<v Speaker 1>of resignations, let's say, and you know, so for a

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<v Speaker 1>large company something with twenty five thou employees, that means

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<v Speaker 1>that a thousand employees could be quitting each year. That's

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<v Speaker 1>a lot of training and retraining that you got to do,

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<v Speaker 1>you know, all the new hires and added benefits everything,

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<v Speaker 1>that's a lot that the companies would have to go through. Yeah,

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<v Speaker 1>that's right. And that's an additional one thousand people quitting

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<v Speaker 1>per year compared to before the pandemic. So yeah, it's

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<v Speaker 1>it's just a tremendous amount of turnover for companies. It

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<v Speaker 1>means that they're probably going to have to hire more recruiters,

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<v Speaker 1>right to replace just all of those openings. And uh,

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<v Speaker 1>you know, Gartner says that companies are probably going to

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<v Speaker 1>have to run their organizations in a very different way

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<v Speaker 1>as well. Leading up to probably today, there is this

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<v Speaker 1>incredible emphasis on running hyper lean organizations, making sure that

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<v Speaker 1>everybody was working at a hundred percent capacity, and you

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<v Speaker 1>probably can't do that in the world we're entering into

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<v Speaker 1>the future, just because that means that when you have

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<v Speaker 1>high turnover, you know, entire teams are not going to

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<v Speaker 1>be able to do their work, or people are going

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<v Speaker 1>to have to work over time to make up for

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<v Speaker 1>the person who left and they're going to burn out.

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<v Speaker 1>That's not sustainable. So that means, you know, hiring more

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<v Speaker 1>people across the board, across the entire organization, which once

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<v Speaker 1>again is also an expensive thing. That's why a lot

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<v Speaker 1>of employers do not want to, you know, believe that

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<v Speaker 1>this prediction is true. But I once again I find

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<v Speaker 1>it really compelling. Right, Like you said, more recruiters and

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<v Speaker 1>over hiring, right, So what does that do even you know,

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<v Speaker 1>it makes a team less efficient. It could because there's

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<v Speaker 1>more players going throughout the thing. But you know when

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<v Speaker 1>you talk about a company being nimble and adapting very

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<v Speaker 1>quickly to rapidly changing situations, you know a lot of

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<v Speaker 1>times that was with smaller groups. Right. You can do

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<v Speaker 1>things a lot easier that way because people could take

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<v Speaker 1>more ownership of certain aspects of it. But now it

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<v Speaker 1>kind of means the opposite. You need more people. So

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<v Speaker 1>when something happens and people do leave unexpectedly, as you

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<v Speaker 1>mentioned right now, it doesn't fall onto everybody else and

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<v Speaker 1>everyone is overburdened at that point. So, I mean, it's

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<v Speaker 1>a real interesting way that the companies are gonna have

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<v Speaker 1>to adapt and kind of as we've been talking, right,

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<v Speaker 1>one of the big things that they found was that

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<v Speaker 1>a big chunk of people saying why they're leaving jobs,

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<v Speaker 1>why they're looking for other things have to do with

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<v Speaker 1>things specifically related to the pandemic. They work from home

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<v Speaker 1>stuff was just so important to a lot of people

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<v Speaker 1>and for the employers, you know, trying to attract new people. Now,

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<v Speaker 1>just saying hey, you can work from home is not enough,

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<v Speaker 1>you know, you need to go above and beyond that,

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<v Speaker 1>because a lot of companies are offering that. And the

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<v Speaker 1>remote thing specifically is people saying I wouldn't have you know,

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<v Speaker 1>in their exit surveys at the companies that they're quitting,

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<v Speaker 1>they're saying, I wouldn't have taken this new job if

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<v Speaker 1>I had to move for it, But because it's remote,

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<v Speaker 1>I don't have to move for it. It essentially means

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<v Speaker 1>that you have so many more options right with these

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<v Speaker 1>remote jobs than you ever had before, especially if you

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<v Speaker 1>were in a smular city a small town. And because

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<v Speaker 1>you have more options, that means that there are more

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<v Speaker 1>options to leave to you know, permanently in the future.

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<v Speaker 1>And and that's why Gardner is estimating that volunteery turnover

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<v Speaker 1>is going to remain so high. And here's another catch

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<v Speaker 1>twenty two that I saw in the article too, is

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<v Speaker 1>that according to Pew Research Center, when they talk to

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<v Speaker 1>people of new remote workers say they feel less connected

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<v Speaker 1>to coworkers. And this disconnection is one of those things

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<v Speaker 1>that causes a lot of people to quit their jobs,

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<v Speaker 1>a lot causes a lot of turnover in the workforce.

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<v Speaker 1>So even more birth is placed on the employers to

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<v Speaker 1>try to figure that out, how to make everybody feel

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<v Speaker 1>connected in part of a team, because when you are

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<v Speaker 1>and I can attest to it, right and itcdotally a

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<v Speaker 1>lot of people can working from home over zoom calls.

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<v Speaker 1>It's just not to say. And it's a catch twenty

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<v Speaker 1>two because you know you have to you know, in

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<v Speaker 1>this new world of work, you pretty much have to

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<v Speaker 1>offer the option of at least hybrid work in order

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<v Speaker 1>to get people to even interview with you. But once

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<v Speaker 1>you offer hybrid and remote work to get people through

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<v Speaker 1>the door, to even get them to come to your company,

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<v Speaker 1>then retention gets a little bit harder because you don't

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<v Speaker 1>have those in person relationships the way that we used

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<v Speaker 1>to back in the pre pandemic world. You know, executives

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<v Speaker 1>might be tempted to hear this and say, oh, this

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<v Speaker 1>means that we should just call everybody back into the office,

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<v Speaker 1>But that's not the solution at all, because then you're

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<v Speaker 1>just driving everybody away. That's gonna make retention worse. The

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<v Speaker 1>real trick here is to try to figure out how

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<v Speaker 1>do you build these connections that we used to have

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<v Speaker 1>in the workplace, even in a remote environment. You know,

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<v Speaker 1>it's it's really hard to do over soon, but it's

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<v Speaker 1>not impossible. You know, some organizations have figured this out

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<v Speaker 1>or are starting to figure it out. So I think

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<v Speaker 1>that is going to be really one of the big

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<v Speaker 1>child which is for every company over the next few years. Yeah,

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<v Speaker 1>it's really hard to take away things that you've given

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<v Speaker 1>to employees, you know, and and to take it back

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<v Speaker 1>is always so tough and just another interesting look at

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<v Speaker 1>how the pandemic has really affected us in so many ways.

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<v Speaker 1>The Great resignation now the forever resignation, right, it is

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<v Speaker 1>quickly changing landscape. So we'll keep an eye up for

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<v Speaker 1>all of that. Aki Eto, Senior correspondent at Business insider.

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<v Speaker 1>Thank you very much for joining us. Thank you. I'm

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<v Speaker 1>Oscar Romrrors and this has been reopening America. Don't forget

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<v Speaker 1>today's big news stories. You can check me out on

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<v Speaker 1>the Daily Dive podcast every Monday through Friday. So follow

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<v Speaker 1>us and I Heart Radio or wherever you get your

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<v Speaker 1>podcast