Indian Gen-Z and millennials are about to bring the next season of the Great Resignation trend
The numbers have declined, but the Great Resignation has been a headache for employers. Back in 2021, during the Covid-19 pandemic, businesses in the US witnessed a rally of employees resigning from their jobs, opposing the toxic trends that frustrated them. This unprecedented mass exit from the workforce is now being widely called the Great Resignation. Worker shortages grew intensely, and according to reports, the relationship between workers and employers worsened. Now, after the US, India is at the helm of facing the Great Resignation trend. Surveys conducted by PwC India stated that 34% of employees in India say that are very likely to switch to a new employer as 19% globally. Employers have grown towards addressing skill shortages through wage enhancement, recruitment, and automation, but only a few use upskilling as a strategic lever to advance the career trajectories of these employees. And now, this move is backfiring!
Experts say that the Covid-19 pandemic brought in the Great Resignation trend, but several consider otherwise. Last year, a large number of employees between 30 and 45 years old had an increase in resignation rates, with an average increase of more than 20% between 2020 and 2021. Meanwhile, turnover also declined among younger employees between the age gap of 20 to 25, mainly because of their greater financial uncertainty and reduced demand for entry-level workers. There are several factors that can help justify the rising number of resignations over the past couple of months. The trend is mainly driven by mid-level employees. Most of these employees have simply reached a breaking point after months and months of high workloads, hiring freezes, and other pressures, causing them to rethink their work and life goals.
Why are Indian Gen-Z and Millenials undertaking this same trend this year?
The results of the report titled India Workforce Hopes and Fears survey of 2022 revealed that millennials are the most likely to seek new employment and resign from their current jobs. Around 37% of them indicated that they are likely to switch employers in the next 12 months. While most Gen-Z will prevent themselves from quitting altogether, around 34% of them are extremely or very likely to ask for a reduction in work hours. But another 33% of the Indian employees say they plan to leave the workforce. The shift to hybrid work is expected to continue and with that comes a load of work pressure and constantly switching work environments also causes hindrances to work practices.
The respondents of the survey are also concerned about the lack of opportunities to work with or learn technological skills from their colleagues. The learning gap is growing, mostly in the tech and healthcare businesses. But unfortunately, the skills gap starts at the top, but reports suggest that around 50% of the existing CEOs perceive this as a lack of skills on the technological front. Yet, business leaders are quite reluctant to introduce new training protocols and create safe space for such conversations.
Global industries will continue to face more such trends
Currently, besides Indian businesses witnessing another wave of the Great Resignation, global businesses are also experiencing the ‘quiet quitting’. It is the latest concept gaining ground among employees. Even though it has got nothing to do with literal quitting, it is the opposite of the hustle culture where employees prioritize their mental and physical health by not going above and beyond at work. They choose to do only what they are paid to do and nothing more. Well, this must be an indication for employers and business leaders to offer reasonable working conditions, higher wages, and training opportunities so that they can advance their careers, serve their companies, and at the same time, take care of their mental and physical wellbeing.