The United States is currently experiencing a historic wave of resignations as millions of Americans are quitting their jobs, according to the latest data from the Bureau of Labor Statistics.
In August 2021 alone, a record 4.3 million people left their jobs, which represents a 2.9% resignation rate – the highest level since the BLS ( US Bureau of Labor and Statistics) started tracking this data in 2000.
The reasons for this mass exodus from the workforce are complex, but a few trends have emerged that shed light on what’s driving workers to leave.
- One of the most significant factors is the ongoing labor shortage, which has given employees more bargaining power in the job market. With companies struggling to find workers, many employees are using this opportunity to look for better-paying jobs with more flexible schedules, improved benefits, and better work-life balance.
- Another factor driving this trend is the COVID-19 pandemic, which has disrupted the way we live and work. Additionally, they may have found that remote work offers them more freedom and a better work-life balance.
- There are also broader societal and economic factors at play, such as rising income inequality and the increasing cost of living, which have made it harder for many Americans to make ends meet. As a result, workers are looking for jobs that offer more financial stability and long-term career prospects, which may be difficult to find in their current position.
WHAT CAN AN EMPLOYER DO
TO KEEP THEIR EMPLOYEES?
Clearly, employers could offer a higher salary to their employees but with rising inflation and companies trying to lower their expenditures, those options can be a challenge.
A good option for all employers, especially the lower income wage earner would be to differentiate themselves in how they pay their employees.
Employers can empower their work force with a no cost/no risk program allowing their employees to get paid up to 50% of their pay before payday. That may not sound monumental to some but for the 80% of employees that are now living “check to check,” when their cell phone or internet is at risk of being disconnected or their car breaks down, it could be a true stroke of genius on behalf of the employer.
RELLEVATE is a company doing just that! If you are an employer, click here for more information. I believe this will be a main stream offering in the near future for companies of all sizes for its relevance and timely need for employees across the US.