In August 2021 more than four million workers quit their jobs7. Since that time, the Great Resignation has been on the minds of many organizations. Although it is impossible to predict all the factors that contribute to a phenomenon like the Great Resignation, there are valuable lessons that we can learn.
Workforce 2030 models estimate that by the year 2030 the United States will see an estimated increase of 11.9 million
new jobs and only 8.9 million
new entrants to the workforce.6
The Great Resignation is not anticipated to end soon; in fact, estimates show that 36% of Millennials and 53% of Generation Z will leave their current employer within two years4. Organizations that fail to strategically plan for the continuing evolution of the workforce will likely suffer. Organizations will increase their chances for success if they educate themselves and prepare for the implications that the changing workforce will have on their organization.
Developing a workforce vision that accounts for the impacts of the below trends will help organizations succeed.
Decline in Population Growth Rate 6
The anticipated population growth rate is declining. The population on Earth is expected to stabilize and stop growing in the year 21008. The impact of this population decline points to a long-term strain on our workforce.
Decline in Labor Force Participation Rate
6
There will continue to be fewer people that make up our workforce. This is due, in part to our aging population. By 2030 all Baby Boomers will be at least 65 years old, resulting in an increase of at least 300 million more people over the age of 65. As this aging population leaves the workforce it will cause a decline in the number of available workers. This also correlates to an estimated 50-85 million more healthcare positions needed to care for our aging population.5
Shifting/Realignment of Workers Within Occupational Groups
We will continue to see rise and falls in multiple industries due to many factors. Research shows that 40-50% of the jobs that exist today did not exist 4 years ago, and in the next 4 years those remaining jobs will likely change as well.2
In order to meet future staffing needs, organizations need to be flexible and open to employees with a variety of skillsets and experiences. More than ever, we will see employees venturing into new industries. Organizations that embrace this realignment will benefit from their ability to expand recruitment efforts into different industries.
Technology/Automation Focus
A continued focus on technology and automation will impact the workforce and the skills that are needed. Self-service options will continue to grow and expand, impacting many industries. Development and deployment of technology related jobs is estimated to create 20-50 million more jobs globally, and automation efforts could also cause a displacement of 400-800 million jobs5.
Purpose Driven - Growth Oriented Workforce
Our current workforce is made up of five generations. Each generation has unique perspectives on their relationship with authority and work styes. For example, finding purpose is a key trait of Generation Z1. Organizations must ensure they connect the mission of the organization to the daily tasks of employees. Our evolving Workforce will expect to serve a higher purpose and to find meaning in their work. They will be motivated by opportunities to grow and expand their skills quickly. When this need is not met, they will leave. Organizations that can instill a growth culture now will develop motivated, inspired, committed employees for the future.
Emotional Intelligence Skills
The world will continue to change at a rapid pace – organizations that can’t keep up will suffer. It will be more important than ever for leaders and employees to have solid emotional intelligence skills. Teams will need to collaborate and adapt quickly, make informed and timely decisions, embrace flexibility, solve problems, communicate well, embrace innovation and flexibility, and manage their stress and wellbeing. Organizations that invest in building these skills will create a thriving foundation that attracts top talent.