How the Great Resignation wave is impacting hiring, job shifting

  • Due to talent shortages globally, companies are matching and offering very competitive salaries and benefits to either retain or attract employees

Saloni Kothari
Updated17 Jan 2022
The great resignation and the resulting talent wars are impacting all industries
The great resignation and the resulting talent wars are impacting all industries(AFP)

The term Great Resignation has been in fashion since last year that is seen to be capturing the rising trend of employees leaving jobs or more of a reshuffle with hordes of employees’ job-hopping, especially in the IT industry, exiting their current positions for better ones. 

Given 2021 was a redefining year with the new normal changing the way of work & the future of work, Divyesh Sindhwaad, Regional Vice President, of Skillsoft sheds light on the continuing Great Resignation wave, new hiring trends, future of work in 2022 posing potential challenges, job market sentiment and more.

The Great Resignation wave

The great resignation wave is continuing in the west and also in India. The Indian IT industry saw a 52 percent rise in the hiring of skilled professionals, a fact that is indicative of accelerated job switches and the need for skilled workforce across the subcontinent, we can still see its impact this year, as per Sindhwaad. 

According to the recently released Skillsoft IT Skills and Salary report, 59% of respondents who switched jobs in the past year cited a lack of growth and development opportunities as their primary reason for doing so, taking precedence over better compensation and work/life balance.

“Organizations must first look inwards and identify whether or not employees fit a particular role while filling up vacancies. Upskilling and reskilling employees is, therefore, vital and this bodes well for organizations looking to plug the widening talent gap. Non-monetary benefits such as flexibility, rewards, recognition, etc. can encourage employees to stick around for longer,” he suggested.

The great resignation and the resulting talent wars are impacting all industries. However, IT in particular is feeling the brunt of its impact as there are numerous opportunities for IT professionals to boost their pay just by learning a new skill or earning a certification can result in a raise. 

Job shifting

Due to talent shortages globally, companies are matching and offering very competitive salaries and benefits to either retain or attract employees. Professionals are moving out of their current organizations for better wages, flexibility, and other personal and environmental circumstances. This war for talent is a significant reason causing huge attrition rates across the IT, manufacturing, and pharma industries. 

“The post-pandemic boom in the gig economy also offers professionals the impetus to quit their full-time jobs for a more flexible work-life and to be able to pursue passion projects. Also, there are many people who are either taking a break or working on their own business plans at this juncture,” highlighted Sindhwaad.

The new hiring trends for this year

Organizations have moved to hybrid or remote working full time. The traditional hiring pattern has undergone a huge shift in the wake of the pandemic as companies have switched to virtual recruitment platforms and are inclined towards onboarding a remote workforce.

Similarly, “employers will also be focusing on internal hiring. Internal mobility is equally important at this point when most people are switching jobs for flexibility and higher pay. It’s also a great retention strategy that drives more engagement as well as lower overheads.”

Major potential challenges in the job market

Skills gap continues to be the primary challenge every organization across industries is facing, which is why, reskilling and upskilling are the need of the hour. This can be achieved through initiatives like open workshops or short-term certification courses that employees can access anytime, anywhere to build either new skillsets or improve their existing ones, as per Sindhwaad.

Job market sentiment amid new variant

For the month of December '21, India's unemployment rate stood at 7.9%, up from 7% in November '21. Urban unemployment now stands at 9.3% as economic activity faces new hurdles due to the Omicron-induced third wave of the pandemic. “While many economists believe this new variant could reverse the overall economic recovery of the country, we are not sure what will happen on the ground as companies are also actively hiring talents, which indicates that there are adequate jobs in the market.”

 

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