From the Great Resignation to the Great Realignment

IN the United States, a record 4.4 million resigned from their jobs this September, according to the Bureau of Labour Statistics. In China, the "Great Resignation" sweeping the world has manifested in the form of a social movement known as "lying flat", or tang ping, as the younger generation rallies against societal pressures to wear themselves out in the rat race for material success.

Singapore is not immune to this global trend. According to a 2021 talent trends report by Michael Page, more than 56 per cent of Singapore workers see themselves searching for new jobs. Clearly, the Big Quit is already casting a long shadow over the year ahead.

Though the resignation rate in the first half of 2021 held steady at 1.6 per cent - below pre-pandemic levels, it is important that organisations do not take this for granted.

Singapore businesses, for instance, according to a Mercer study, are taking a cautious approach, offering salary increments of an average 3.5 per cent next year in anticipation of the resignation bug hitting the country.

Boards, management teams, leaders, HR and the young talent in Singapore need to realign their employment practices, engagement policies, and even aspirations for employee-employer relationships.

Why is the Great Resignation happening?

While it is convenient to blame the pandemic, the underlying causes for the great desire to quit are deep rooted in human psychology and how people view their relationship with the corporate enterprise. In what is known as the "fresh start effect", researchers have found that people are most inclined to make meaningful changes during temporal landmarks, like the first day at work or an important anniversary.

The pandemic perhaps marks the "new" beginning for a lot of people, creating the perfect catalyst for change.

What often ensues is the uncovering of a gap between their aspirations and the reality people live in today - a revelation that then raises the doubt: Has working the 9-to-5 grind really brought us closer to our goals in life?

An increasing number of people therefore are pressing "pause". Some have taken a career break, while others have set off on a new, entrepreneurial path.

With tenuous emotional connect with their employers, and working from home already the default arrangement for most, moving jobs could just mean switching a laptop and an email address, and very little more than that.

Much like how hybrid work is now a permanent fixture in many organisations, the trends underlying the Great Resignation are here to stay. The big question for Singapore is how organisations can turn the tide by taking decisive action now and driving realignment on multiple fronts.

Of money, value, and well-being

While Singapore businesses are taking heed of this trend and increasing payroll budgets for 2022, the Great Resignation is driven by an emotional disconnect between an individual and the organisation, rather than a gap in material needs.

Building a meaningful career is not just about paying the bills, but also a sense of fulfilment and purpose - without which the employee-employer relationship becomes a purely transactional exchange that can easily fracture.

Organisations need to not only realign their compensation philosophy, but also their employment and engagement practices, and help talent align their individual purpose with the organisational purpose.

Boards and leadership teams must 'live' the people agenda. Investment around wellness programmes to help build physical, emotional, and mental resilience, is one must-do. Leaders must also encourage their talent to upgrade and develop their skills. Exemplar organisations understand that employee development is a key motivation driver. Also, taking decisive actions around diversity and inclusion makes the employee-employer emotional connect stronger. Finally, leaders must communicate the purpose of the organisation, and help talent, especially younger leaders, see the impact of the organisation on a greater good, beyond the top-line.

Managers, on their part, must make their teams feel recognised and valued for their contribution. Engagement and intention to stay are both dramatically higher for employees who believe their managers care about their development and well-being.

As the transient point between the organisation and the employee, managers are best positioned to identify a fall in employee engagement and address any emerging concerns. Effective leaders are the ones who enable the team to see the purpose in their day-to-day roles and create opportunities for others to explore different ways of seeking fulfilment in their work. Empathy, a key managerial trait, grossly undervalued traditionally, is the key to unlocking the emotional connect with their teams.

In the immediate term, evaluating and updating flexible working policies, and driving wellness programmes, are two areas most HR teams must disproportionately focus on.

Lastly, employees themselves must also realign their expectations from their employers. Having an open conversation with the manager around career aspiration, or flexible work requirement, may go a long way in finding appropriate opportunities within the organisation, and bring about more rewarding challenges than the often onerous task of switching jobs.

Exhaustion or burnout is another common reason for disengagement; taking ownership of your own wellbeing, much before the burnout stage, can contribute to long-term happiness and satisfaction at work.

• The writer is head of Asia Pacific research, innovation & product development at Center for Creative Leadership