What Is the Great Resignation?
The Great Resignation refers to a global workforce trend where employees voluntarily left their jobs in large numbers, especially after the COVID-19 pandemic. Workers sought more flexibility, better compensation, improved work-life balance, and jobs with deeper personal meaning. This movement disrupted traditional workforce dynamics and challenged businesses to rethink how they attract and retain talent.
Why Are Employees Leaving?
The mass resignations didn’t happen in a vacuum. They were the result of deep-rooted issues that many employees had tolerated for years—until the pandemic forced a global re-evaluation of priorities. Here are some of the key drivers behind the Great Resignation:
1. Burnout and Mental Fatigue: The pressures of working through a global crisis took a toll on employee well-being. Increased workloads, blurred work-life boundaries, and the emotional strain of uncertainty led to widespread burnout. Employees began to realise that staying in exhausting roles with no mental health support was unsustainable. This puts employee wellbeing at the center of workplace conversations.
2. Lack of Flexible Work Arrangements: Rigid 9-to-5 schedules and a strong emphasis on physical office presence no longer aligned with employee expectations. Many workers—especially those who experienced the freedom of remote work—felt that being forced back into outdated models showed a lack of trust and adaptability from employers. Flexible work options quickly became a top priority for job seekers.
3. Poor Management and Toxic Culture: A toxic workplace culture or ineffective leadership can push even the most loyal employees out the door. Poor communication, lack of recognition, micromanagement, and favouritism eroded employee trust and engagement. In contrast, people now seek purpose-driven work environments where they feel heard, respected, and valued.
4. The Desire for Remote or Hybrid Work: The pandemic proved that remote work could be productive. Many employees are now unwilling to give up the autonomy and balance it offers. Companies that refuse to offer remote or hybrid models risk losing talent to more forward-thinking competitors.
5. Limited Career Growth and Development Opportunities: Stagnant roles with no clear path for advancement make employees feel stuck. Without access to upskilling, mentorship, or internal mobility, many decided to leave in search of organisations that invest in career development and long-term growth.
In response to these factors, HR leaders must rethink traditional incentives. It’s no longer just about salary—it’s about employee experience, career fulfillment, and workplace culture. Addressing these needs is key to building a more resilient and engaged workforce.
Impact on HR Strategy
The Great Resignation exposed critical flaws in traditional HR strategies that many companies could no longer afford to ignore. Across industries, businesses experienced record levels of employee turnover, struggled to fill open roles, and faced increased competition for top talent. For many, it became clear that long-standing HR practices were outdated and out of sync with employee expectations.
One of the first cracks in the system was a lack of agile talent acquisition. Recruitment processes were often too slow or rigid to respond to the urgency of resignations, causing productivity gaps and mounting pressure on remaining staff. Similarly, companies found that outdated employee retention programs—focused mostly on compensation—weren’t enough to keep people from leaving.
In response, leading organisations began rethinking their entire HR strategy, focusing on people-first approaches to work. This shift included:
1. Reworking employee retention programs: Companies began offering more meaningful benefits, such as remote work options, flexible hours, paid wellness days, and clearer paths for internal mobility. Retention efforts also included building stronger manager-employee relationships and fostering open communication.
2. Enhancing employee engagement strategies: Beyond surveys, organisations started listening more actively to employee feedback. Engagement is now driven by recognition programs, personalised development plans, and frequent check-ins that help employees feel seen and supported.
3. Creating more flexible work environments: Flexibility emerged as a non-negotiable. From hybrid work models to flexible scheduling, companies that adapted quickly gained a competitive edge in both hiring and retention.
4. Prioritising mental health and wellbeing: The pandemic highlighted the importance of supporting the whole person, not just the employee. Organisations invested in mental health resources, wellness programs, and training for managers to recognise signs of burnout.
Additionally, a lack of career growth opportunities was a major driver of resignations. Employees want to grow, learn, and progress—so HR teams are now integrating more learning and development pathways, mentorship programs, and internal promotions to retain ambitious talent.
Ultimately, the Great Resignation forced HR leaders to look beyond paychecks and reassess what truly matters to their people. It shifted the focus from transactional benefits to meaningful employee experiences—ushering in a new era where employee satisfaction, purpose, and empowerment sit at the core of every successful HR strategy.
What HR Leaders Must Do Next
As the workplace continues to evolve, HR leaders must respond proactively to the challenges posed by the Great Resignation. The pressure to retain top talent, attract new candidates, and boost employee morale has never been higher. Here’s what forward-thinking HR leaders must prioritise:
1. Audit Current HR Policies: Outdated policies can unintentionally contribute to employee dissatisfaction. HR leaders should conduct a thorough review of existing policies—especially around remote work, leave, performance reviews, and compensation structures. The goal is to ensure alignment with the modern employee’s expectations and the realities of today’s workforce.
Key questions to ask:
- Are they easy to understand and implement?
- Are our policies inclusive and equitable?
- Do they support flexibility and work-life balance?
2. Strengthen Employer Branding: In a competitive talent market, your employer brand is just as important as your consumer brand. HR must work closely with marketing and leadership to craft a compelling narrative about what it’s like to work at the company.
Highlight:
- Employee success stories
- Career development opportunities
- Social impact initiatives
- Company values and culture
Candidates want more than a job—they want to work where they feel seen, valued, and inspired.
3. Invest in Technology and Automation: Burnout is often tied to inefficient workflows and manual, repetitive tasks. Investing in HR tech tools—like automated onboarding systems, payroll software, and performance management platforms—can free up time for HR teams and create a better experience for employees.
By automating routine tasks, HR professionals can focus on strategy, employee engagement, and building meaningful connections across the organisation.
4. Drive a Culture of Trust and Transparency: A workplace built on open communication, psychological safety, and accountability is one where people thrive. HR leaders should champion honest conversations, regular feedback loops, and clear internal communication. When employees trust leadership and feel heard, they’re more likely to stay and contribute at higher levels.
The Great Resignation isn’t just a moment—it’s a movement. For businesses, it’s a reminder that people are the heart of every organisation. By rethinking how we engage, retain, and support our teams, HR can lead the way in creating workplaces where employees truly want to stay and grow.
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