How "The Great Resignation" Can Affect Your Business

Have you been having serious difficulties filling some of your employee vacancies? Finding prospects is getting harder every day for your organization? Employees are quitting at an abnormally swift pace?

If you fall into any of these last categories, is no surprise, lots of business owners are struggling to stay properly staffed.

In recent weeks, news outlets in America have been informing about a very serious phenomenon that is currently affecting businesses all over the country: The Great Resignation.

Also known as The Big Quit by the media, The Great Resignation term has been coined by Anthony Klotz, a professor of management at Mays Business School of Texas A&M University. But what is it about?

Experts believe that this ongoing trend of employees voluntarily leaving their jobs, from spring 2021 to the present, is a response to the COVID-19 pandemic, the American government refusing to provide necessary worker protection, and a sense of wage stagnation among the working class.

In April 2021, as COVID-19 vaccination rates increased, evidence began emerging that the Great Resignation was beginning in the United States. That month alone, a record 4.0 million Americans quit their jobs. And this is only the beginning.

In October 2021, the U.S. Bureau of Labor Statistics reported that food service workers' quit rates rose to 6.8%, which is well above the industry average of 4.1% over the last 20 years and still higher than the industry's quit peaks of 5% in 2006 and 2019. A Deloitte study published in Fortune magazine in October 2021 found that among Fortune 1000 companies, 73% of CEOs anticipate the work shortage will disrupt their businesses over the next 12 months; 57% believe attracting talent is among their company's biggest challenges; and 35% have already expanded benefits to bolster employee retention.

Truth is, this trend will start affecting many businesses, especially those who depend on staff for their customer service, and other significant areas like graphic design and administration.

But let’s talk about solutions. We understand some positions have to be filled by on-site personnel, but lots of vacants can be filled by remote staff. ScaleSource has the best remote staffing solutions for your company, helping you find the most qualified team members with affordable plans.

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