The so-called Great Resignation is going strong, and it is no longer just to work the rigid ones. Increasingly, managers are also leaving their jobs for greener pastures.
The data show that managers are leaving their jobs at high levels and that while employee layoff rates in general have declined from their peak, many people are still leaving their jobs. The breadth of resignations could aggravate an already narrow labor market, as resignations in one area precipitate resignations in another, and this cycle could ensure that the Great Resignation, also known as the Great Reconstruction or Great Reconsideration, is not s will stop soon.
Data on management outflows come from a variety of sources. People analysis provider Visier found that resignation rates among executives went from 3.8 percent in the first half of 2021 to 5 percent in the first half of 2022, which represents a much bigger jump than that of non-managers. Gusto, which offers payroll, benefits and human resources management software, found that resignation rates among executives remained at the same level in June as last year, while those for non-executives have declined. LinkedIn found that the rate of people leaving their jobs at the director level has grown much faster than at entry-level people this year. The departure of bosses was also evident on the ZipRecruiter job platform, which said job vacancies for managerial jobs are growing at a faster pace than job vacancies in general and currently account for 12 percent of job offers, 10 percent more than in June last year. .
To be clear, dropout levels remain high at different types and levels of work. Data released by the Bureau of Labor Statistics this week shows that 2.8 percent of employed people quit their jobs in May. This is slightly below the 3 percent high last winter, but it is still very high. In general, looking for a different job has become a national pastime. According to the application marketing intelligence company Apptopia, the number of people using the best job search applications is at an all-time high. Workers with lower wages always make up the majority of the workforce and the majority of layoffs. However, as the consequences of the pandemic and existing trends such as an aging workforce continue, however, the The composition of resignations has changed to include more workers with higher contracts and, increasingly, those in management positions.
“Waiver rates are rising and toward ranks where it’s not a prior conclusion,” Joseph Fuller, a professor of management practice at Harvard Business School, who leads his Managing the Future of Work initiative, told Recode. “They are workers with a higher salary who have presumably invested a lot in educational credentials, training or career development in a company. They are managers and they are leaving pretty good circumstances, that should be a concern for companies. “
Their outings greatly affect the people who work for them and the companies they work for, both of whom depend on managers to stabilize things in times of uncertainty. If managers leave, the CEOs of their companies will have to do without them, at least for a while.
“It’s like the army relies on junior officers,” Fuller said. “If suddenly the sergeants and generals resign, no matter what the general’s great vision for winning the war, someone must be down there grabbing the beaches.”
But on a larger scale, a large number of resigning leaders could lead to even more resignations among grassroots workers and other managers, making the phenomena of the Great Resignation last even longer.
Why does your boss leave
Bosses are people too, and they are subject to many of the same headwinds that cause everyone else to quit their jobs, including exhaustion and reconsideration of the workplace in their lives. But his reasons for leaving are also unique to management, which handles the increasingly difficult task of hiring and retaining workers at a time when people stop going down to the right and left.
In a survey of executives, leading software maker Humu found that retention and hiring were the top two major challenges last year. People leave their jobs continuously for things like better pay, remote work and self-employment, and it is the responsibility of management to replace them, which is not very easy in this tight job market.
Managers are also trying to lead their workforce amid unprecedented changes, which increases their stress, as they may not be equipped for it.
“A lot of executives are put into management, not because they’re great people managers, but because they’re great technical collaborators,” said Jessie Wisdom, co-founder of Humu. “That doesn’t necessarily mean you have the skills to manage emotions in difficult times and unprecedented levels of exhaustion and help your team balance things they’ve never had to balance.”
He added: “People are going through difficult times and as a manager you have to help them get over it. Part of your job is almost to become a therapist.”
A dispersed workforce is also creating new challenges for managers. The vast majority of large corporations are adopting a hybrid model, where employees work both from home and from the office. Managing people through locations and trying to bring people who don’t want to go to the office is proving to be a major difficulty for management.
The resignations of managers are also the result of many opportunities, both professional and personal, elsewhere. One-third of executives who resigned in May did so for professional promotion reasons, compared to just 19 percent in non-managerial positions, according to Gusto data. The company also surveyed all types of workers on its platform and found that its number 1 factor in accepting or rejecting a job offer is flexibility. Nearly half said the ability to work from home part or all of the time would be an important or more important factor in deciding whether to accept a job offer in the future. Presumably, people in managerial positions are more likely to have jobs where they can work from home, which means they are more likely to have that flexibility, either in their current or future job.
It is important to note that managers, especially executives, have a higher salary and therefore have more financial security than their positions, so they have more mobility to resign.
“The pressure and demands on the management suite remain quite substantial,” said Steve Hatfield, global leader in the future of Deloitte’s work. “And the financial position they’re in is one that would give them a chance to think about doing something different.”
It could also be a case of monkey seeing, monkey doing. As more people in management positions stop smoking, the idea of quitting becomes more apparent as an option for other managers.
What does this mean for the future of work
The data suggests that the exits between management are not just a flash in the pan, and will likely continue for some time. Deloitte recently found that nearly 70 percent of executives are seriously considering giving up a job that better supports their well-being, compared to 57 other employees. Humu’s research shows that the risk of attrition for executives is twice as high as for non-executives, something that had not been the case in previous years.
This could turn into a situation that feeds on itself.
When one manager leaves, another gets caught up in the flow, which could further frustrate them and potentially lead them to resign. This could cause their workers, who are left without proper management who can hire for unoccupied positions, to also leave, and this further complicates the work of the remaining manager. In addition, shortcomings could force companies to promote or hire people in those places that are not qualified, further aggravating the situation.
“There’s this difficulty that we’re seeing when it comes to matching potential employees with the roles that fit, and managers are primarily responsible for creating those matches,” said Luke Pardue, an economist at Gusto. “So when they leave and the knowledge they have of the company and those roles disappears with them, it’s likely we’ll see this struggle continue to find good matches and increase the number of vacancies.”
In other words, the transfer of management could worsen the Great Resignation.
Nor is it attractive that potential candidates do not know who their boss will be. As Fuller, a Harvard Business School professor, said, “Would a baseball player sign with a team where you didn’t know who the manager would be?”
This uncertainty is not attractive to candidates with options. “For all I know, they’ll hire the biggest idiot with two legs,” Fuller said.
Of course, so far it is not clear what an economic recession means for all this. People, of course, do not necessarily make life decisions based on an impending recession, but tend to act as if the current situation is a predictor of the future.
What we do know is that managers are an important part of running a business and require a set of nuanced skills, such as real-time judgment and people’s skills, that can be difficult to learn about. paper. And their ability to do so can have repercussive effects on both the company and employees.
At this point, the Great Resignation has gained so much momentum that it has become a force in itself. What is not clear is how long it will take to slow down significantly.