It’s been two and a half years since Covid-19 has shifted the way in which humans operate and maneuver in their daily lives. Since Covid-19 has caused a heave of lifestyle changes, the relationship that people have towards their work-life has drastically shifted as well. From the growing cases of dissatisfying working conditions, uninspiring jobs, and bad bosses, the number of resignations has increased, and the desire to seek out a better deal from companies has grown.
Thus, “The Great Resignation” has been coined to describe the pattern of employees voluntarily leaving their employment during the pandemic. However, AI has stepped up its game as people have stepped down and is becoming the solution to bring motivation back into employees and firms that have lost the majority of their people.
What’s in this post?
- What is the Great Resignation?
- The Great Resignation is really The Great Churn
- How AI can help reduce churn
What is The Great Resignation?
The Great Resignation, which is also known as the Great Reshuffle, refers to a higher-than-normal resignation rate among employees that began in the spring of 2021. Over 47 million Americans have voluntarily quit their jobs, spurred on by the Covid-19, leading to worker shortages followed by a challenge to fill them up. It has become a defining trademark of the U.S labor market when the economy began to emerge from its pandemic hibernation from the increase in the vaccination rate. As a result of the Great Resignation, the unemployment rate fell, and job vacancies rose.
The Great Resignation is really The Great Churn
According to a CNN report, a wave of 4.4 million people in the United States have quit their job in February 2022, and research from the Dept of U.S Labor stated that 3.6 million Americans left their job as of May 2022. In some circumstances, people have quit the work market to care for children and elderly relatives who were exposed to a high risk for Covid-19.
Therefore, labor shortages stimulated a high demand for employees, pushing people to take advantage of a competitive market to find a job with higher perks or salaries. In other cases, people working at desk jobs left after feeling fed up with long pandemic hours and Zoom meetings. They decided that they had enough.
When reading this, do you also identify yourself in any of these cases? Perhaps also experienced burnout, and an extreme lack of motivation even if you are at working home? It is understandable.
Since the pandemic began, employees have been leaving the workforce or switching jobs in droves.
People also wish to change employment for more traditional reasons, such as higher pay, benefits, or a lack of progression chances at their current position.
A recent survey conducted by Microsoft stated that 52% of young people polled, namely Gen Z (aged 18 to 26) and Millennial workers (aged 27 to 41), said they were likely to consider changing employers this year in the hope of more perks and flexibility at work.
Meanwhile, only 35% of Gen X (age 42 to 55) and Boomers (age 56 to 75) are considering changing jobs or reinventing their careers altogether.
Therefore, as the urgency of the pandemic started to peak in 2021, workers who had resigned from their job decided to delay their decision to get back to work until the job market improved. However, many of those who stayed at their jobs throughout the pandemic faced burnout when trying to seek a more meaningful work that offered a better work-life balance.
As a result, the unusual pandemic experienced had caused workers to re-evaluate their life priorities, and over time, some have begun to value the home-office lifestyle over in-person work. The tables have turned, and it is no longer employees seeking out jobs, but employees becoming ready to walk away from jobs that do not meet their needs.
So how can The Great Churn be saved? What solution is available to us? – perhaps adding a dash of intelligence to your company can be exactly what attracts candidates to your workplace.
How AI can help reduce churn
Amidst the Great Resignation, 52% of employees believe that AI will make their job easier, and more enjoyable. 31% agreed that with the use of AI, they would be more responsive to customers, and 41% stated that AI would help free up their time for more creative tasks thereby keeping them motivated and engaged in their work. In the HR and talent management teams, 81% of employees confirmed that AI helped to improve their overall performance at work by supporting employees to be productive by streamlining and automating labor-intensive processes.
Artificial Intelligence (AI), which has made significantly rapid progress in recent years, is now positioned to emerge as a force multiplier for both process efficiency and human performance. It has become a powerful tool that helps employees save time and energy on mundane tasks that may be playing a role in burnout and lack of performance in general. Employees want to feel energized by meaningful work, and AI is the perfect tool to take on the responsibility of repetitive tasks and leave the more creative and stimulating duties to people themselves.
Thus, AI (Artificial Intelligence) could be your answer to conquer the churn and war for talent. By implementing AI, companies will be able to pinpoint the precise reasons for churn and use this feedback to learn more about their employees on a deeper level to bring them up to success. This is exactly what Retorio has to offer - a behavioral intelligence platform that allows you to spot, hire, and develop your optimal customer-facing team by selecting candidates based on personality and behavior.
Prioritizing a candidate’s characteristics and what it is exactly that will help them thrive or demotivate them in a workplace is the first conscious step the company takes to reduce churn. As a result, candidates who are interested in re-joining the job market, will feel more welcomed and seen through their personality rather than being evaluated purely on their set of skills and experiences.
Recruiters use AI to help them tackle a range of tasks and processes more efficiently. Take, for example, resume screening. Examining resumes might consume several hours of a workday. However, using Retorio’s AI can get the task completed in no time at all. A candidate’s personality and behavior are thoroughly examined and matched to the job’s target profile.
On the other hand, AI is equally valuable for candidates. Candidates face little to no biases throughout the selection process. This will not only encourage candidates to feel more involved from the start but also help them feel a sense of appreciation from the company which will help the company grow their work performance quality which then leads to a more satisfying customer experience.
Churn is an inevitable part of the business. However, the benefits of reducing turnover can be game-changing. According to studies, attracting a new client is five times for expensive than keeping an old one.
Furthermore, a 5% improvement in client retention may result in a 25% to 95% boost in profitability.
While churn cannot always be prevented, artificial intelligence has come to the rescue to reduce it to a minimum. By implementing it into your company’s routine, you can set your firm up for success, since customer experience increasingly beats price as a factor of consumer pleasure and loyalty. Therefore, now is the perfect time to pull in AI, and experience all the benefits it has to offer. A great place to start doing so can be here with us at Retorio!
If you would like to learn more about how Retorio’s behavioral intelligence platform can be the perfect solution for reducing your company’s churn rate, click on the link below!