What is 'the Great Resignation' and Why Should It Matter to Malaysian Jobseekers

A few months into the Covid-19 pandemic, the global workforce saw a mass of employee resignations. Witnessing this phenomenon in the West, where millions of Americans have been resigning, Professor Anthony Klotz of Texas A&M University postulated the idea about "The Great Resignation." About this, he predicts that a large number of workers will be leaving their jobs as the pandemic ends and life returns to normal. 

In America, at least 3% of the entire workforce quit their job last September 2021. Job hopping has also reached a record high in Britain in the year's third quarter. Now the question remains: Will the Great Resignation hit Malaysia? And if so, how soon?

What to know about the Great Resignation

The term “the Great Resignation” can send out a slightly problematic interpretation. However, Professor Adam Alter of New York University’s Stern School of Business said that naming an economic trend is important because “it allows us to identify a concept with precision, certainty, and consistency.” 

Fast Company uses the term the Great Reprioritisation instead. At the National Institute of Standards and Technology, it is the Great Recognition. Other terms include the Great Reshuffle, the Great Realisation, the Great Questioning, the Great Change-Up, the Great Contemplation and the Great Re-Invention. 

Rebranding this phenomenon is about as common as mass resignations. Renewing the phrasing seems to help both employees and employers wrap their heads around the seismic changes to working in an office and better explain how the Great Resignation has affected their workforce and the steps they are taking to adjust to the new normal.

Though the mass resignation of employees is worrying many business sectors, it should be noted that some of this churn is a passing phenomenon created due to job dissatisfaction while the world economy was in freefall. 

Who are resigning?

Due mainly to the pandemic and subsequent lockdowns, many have begun to change their concept of “work-free living.” The Reddit forum r/antiwork gained over 920,000 followers this year alone and saw more than 1,400 daily posts on average. Many of these workers have issues with low pay, unrealistic work deadlines, and unhelpful superiors.

Both employers trying to keep their teams whole and employees considering quitting sometimes misunderstand what the Great Resignation means. It is not about leaving the workforce entirely and going jobless. Older workers near retirement age who do not want to get infected by Covid-19 are a large demographic of the Great Resignation. Other demographic groups such as working mothers and fathers with young kids also contribute to the “anti-work” chatter on Reddit. 

The majority of resigned employees are white-collar workers in mid-career or low-wage workers who job hop to better-paying employment. These workers are searching for more meaningful work and will be more discerning about where they will work next, but they aim to stay longer at their new job.  

Some great resignation statistics show the opposite — that higher numbers of employee churn rates may be here to stay, especially in high-risk jobs such as those found in the medical and hospitality industries, where the resignation rates are highest. Many low-wage workers are more and more reluctant to do work requiring face-to-face contact with customers and colleagues.

Businesses and employers should also be aware that the Great Resignation is not about wanting to get out of work. Rather, it is an indication that workers’ expectations about professional life have shifted.

Why are employees resigning?

A work-from-home setup has given many employees a couple of extra hours they would not have had if they had worked in a physical company office. Working from home has provided workers with the freedom to dress comfortably, eat as many snacks as they want while working, or even take more breaks. The more industrious workers have been able to work on upskilling themselves and taking more time to tinker with their various hobbies and interests. The return to physical offices has caused much pushback from employees who have enjoyed and adapted well to the work-from-home situation.

Working in the same space, such as an office, builds coworkers’ camaraderie. Experts also say that physically interacting with coworkers, employers, or clients is still the best way to brainstorm or solve problematic tasks. More astute employers should nonetheless face the fact that they should prepare for hybrid working to keep their employees happy. If remote working is here to stay, leaders should plan accordingly.

Why mid-level employees resign

According to the Harvard Business Review, resignation rates are highest among employees between 30 and 45 years old, with an average increase of more than 20% between 2020 and 2021.

Some factors can help to explain why these mid-level employees have primarily driven the increase in resignations. 

1. Shifting to remote work has made some employers feel that hiring people with little experience would be riskier than usual because new hires will not benefit from in-person training and guidance. 
2. The greater demand for mid-career employees has given mid-career jobseekers greater leverage in securing new positions.
3. Many of these mid-level employees have delayed shifting from their current employment because of the pandemic. Therefore, the boost in employee resignation results from more than a year’s worth of pent-up frustrations due to high workloads and hiring freezes that then turn to resignations.

While the focus has been on mid-level employees resigning, other studies have shown that Gen Z and millennial workers are also planning to leave their jobs in 2022.

Has the Great Resignation hit Asia?

According to the Malaysian Employers Federation and the Malaysian Trades Union Congress, Malaysia will not see a mass resignation of workers leaving their jobs anytime soon. However, it is still too early to predict if, and how hard, the Great Resignation will hit Malaysia. 

Career development opportunities and work-life balance are some of the most critical factors to talent in younger age groups, according to JobStreet Laws of Attraction. Unsurprisingly, the Great Resignation has not reached Southeast Asia as quickly as it did the West. The need for post-pandemic job security and the differences in culture and social welfare safety nets are some factors that may affect this. 

Therefore, employees, especially those with family responsibility and financial commitments, still prioritise job security. On the other hand, we are more likely to see movement amongst Gen Z and Millennial employees, while Gen Xers and Baby Boomers are likely to stay put.

Mass dissatisfaction regarding pay, benefits, and limited career advancement is the primary driver of higher-than-usual attrition levels. Mercer, one of the largest sources of employer-reported data, created a pulse survey that polled more than 850 employers globally. Most Southeast Asia respondents (Malaysia, Indonesia, Philippines and Thailand) observed a higher turnover rate, especially at the mid-career level, than before the pandemic. With more mid-career professionals resigning, employers are finding it harder to recruit replacements, primarily because of the inability to find the right employee with the right skills at the right price. 

This candidate-driven market has presented the global workforce with more leverage than in the last few years. With this in mind, employees should give themselves time and an honest examination of their satisfaction in their current place of employment.

Joining the Great Resignation may be a blessing for those looking for a career shift. More employers are now adopting a people-centric approach to hiring. HR and hiring agencies are now more open to compromises to ensure employee retention. Offers can range from better career development pathways to upskilling and professional growth to better, more flexible work arrangements.

Bold steps in securing that your new job aligns with your goals and needs can gain you better and more satisfying employment. Ready for something new? Check out JobStreet’s Let’s Get to Work campaign for inspiring stories about people who have found their passion at work.

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