Despite mounting economic worries, the Great Resignation triggered by the epidemic is still underway, with a near-record high of 4.4 million Americans departing in April.
One expert explains the logic for the ongoing reshuffle and cautions that labor shortages are likely to continue for a long time.
After 25 years in the field, Julie Bauke, founder and chief career strategist of The Bauke Group, has a good handle on both sides of the desk when it comes to employer-employee relationships, and says the changes companies are seeing now are multilayered but largely inevitable – COVID just accelerated them.
“There’s a mismatch between individuals and their talents and what they want to do, and the job that has to be done,” Bauke said on FOX Business, referring to the many older, seasoned employees who were forced to retire early due to the epidemic.
Those so-called “boomers” have been replaced by new generations of workers who are unwilling to follow in the footsteps of their parents and grandparents.
IN THE MIDST OF AN OFFICER SHORTAGE, PHILADELPHIA-AREA TRANSIT COPS WILL RECEIVE A MASSIVE PAY RISE.
“On top of that,” she added, “you have this demand that far outstrips supply, giving the younger generation power – and they’re not hesitant to use it.”
In 2020, Lesley Williams resigned from her work as a bookkeeper at a timber business to care for her grandkids and mother-in-law. Getty Images/Lindsey Wasson for The Washington Post Getty Images/Lindsey Wasson for The Washington Post In 2020, Lesley Williams resigned from her work as a bookkeeper at a timber business to care for her grandkids and mother-in-law. Getty Images/Lindsey Wasson for The Washington Post
According to Bauke, high leave rates are attributable in part to worker and employer impatience. Some employees enticed by higher pay have jumped ship too quickly and subsequently regretted their decision, while employers anxious to fill vacancies have not been selective enough in their recruiting.
A slowing economy would likely temper both sides’ impatience, with employees ready to continue with a job out of fear of not being able to find another, and firms pulling off on hiring to save money.
SEALS FOR SOLID MAY JOB GROWTH THE AGREEMENT FOR MORE MASSIVE FED RATE INCREASES
Even if a recession occurs, the migration of baby boomers from the workforce, along with a younger generation more eager and able to establish their own internet company rather to work for “the man,” implies labor shortages will endure, according to Bauke.
On March 24, 2022, a massive “Now Hiring” advertisement is displayed on the windows of an Advance Auto Parts shop in Bay Shore, New York. Getty Images/Steve Pfost/Newsday RM Fox Business is the source of this information. On March 24, 2022, a massive “Now Hiring” advertisement is displayed on the windows of an Advance Auto Parts shop in Bay Shore, New York. Getty Images/Steve Pfost/Newsday RM
“There are still fewer individuals seeking for conventional work than there are positions available,” she noted. “To be honest, I don’t see it changing for a long time, if ever. Because you can’t just give birth to a lot of grownups and expect them to accept the job.”
Bauke encourages businesses to not only be thorough when hiring new workers, but also to treat existing employees like adults in order to retain them – something that has proven challenging for some businesses in this new atmosphere, where remote work and other flexibility attract more prospects.
“The first thing you have to do is a unique notion called genuinely talking to your employees and asking them what they want,” Bauke adds, noting that top management is frequently blind to workers’ concerns. “You have to engage; you have to interact and communicate with your employees from the top down and get them interested in your solution.”
She said again, “Your responses may be found among your people. They’re among those who are putting up the effort.”