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Current Affairs

Great resignation

Date: 19 January 2022 Tags: Miscellaneous

Issue

A phenomenon known as Great Resignation is taking place across the US, in which individuals are leaving their jobs at unprecedented rates.

 

Background

The pandemic related uncertainty had forced people to give up their plans to resign. A year later, the workforce has been resigning in heaps.

 

Details

  • The data from US labour department showed that 4.5 million workers left their jobs. About 75.5 million people in America resigned in 2021. 

  • Most affected sectors include hospitality, healthcare and social assistance, and transportation, warehousing, and utilities. 

  • People in low wage jobs are more likely to put in their papers than their higher-paid counterparts across sectors.

  • About 4.4% of positions in education, 6% in retail and 8% in healthcare are open. About a million and half positions are vacant.

 

Situation in India

  • IT sector in India is hiring at unprecedented rates with the top five IT companies hiring around 1.7 lakh people in 2021. 

  • A recent study has shown that 51 per cent of job seekers are looking for opportunities in industries where they have little to no experience.

  • Other reasons for resignations include shift to working from home and the desire to move into a more stable profession. 

 

Impact

  • Top companies are offering higher salaries and perks like work from home to attract best talents. High salary has been a major reason for shift.

  • Companies are also offering employees shorter work hours, allowing them better lifestyle. This has affected demand for houses.

 

Way out to reduce resignations

  • Burnout due to a lack of new challenges and the opportunity to try something new were among the major reason for people leaving jobs.

  • Employers can offer their employees new jobs in the same company. This will reduce chances of their resignation. International postings are also a big incentive. 

  • Companies having a healthy work culture are less likely to lose employees. Social events, providing benefits like happy hours and organizing more excursions outside the office create healthy work environment.