How to Navigate Workforce Upheaval and Empower Member Businesses to Do the Same
In 2022, more than 47 million Americans quit their jobs. The phenomenon became known as the “Great Resignation” and it capped off the 2021 worker shortage. Recent survey findings released by Resume Builder paint a concerning picture that we may be on the brink of another wave of disgruntled employees vacating their positions. Nearly 3 in 10 workers in the survey admitted to a desire to leave their jobs this year, with the service industry and younger demographics leading the charge.
This potential “Great Resignation 2.0” is fueled by desires for higher pay, increased engagement, better benefits, and the rising popularity of side hustles. While this may seem daunting, chambers of commerce, are uniquely positioned to help their members navigate these turbulent waters.
Understanding the Shifting Job Landscape
The workforce is continuing to undergo a fundamental shift. Employees, particularly younger ones, are no longer solely motivated by traditional factors. They seek purpose, flexibility, and opportunities for growth. Many are exploring side gigs, blurring the lines between traditional employment and entrepreneurial ventures. They also realize that the quickest way to increase pay is job bouncing. Staying at a job and expecting to be rewarded financially for your loyalty is an outdated concept and Gen Z knows this better than anyone.
Additionally, younger people switch jobs more frequently due to the Goldilocks Syndrome of trying to find the position that is “just right.” Julia Toothacre, a career strategist at Resume Builder shared in a recent report, ” Younger workers tend to switch jobs at a higher rate because they are trying to determine what type of function, industry, and environment work best for them.”
What can chambers and businesses do to help combat the drain on resources and productivity that could occur from another “Great Resignation”?
Chamber-Led Workforce Development: A Strategic Imperative
This has the makings of a cautionary tale as a study from Paychex taken a year after the “Great Resignation” showed that about 80% of professionals who left their job regretted it. Gen Zers had the most regret with 89% of respondents saying they were remorseful over doing so. 77% of millennials felt the same.
While it is difficult to help younger generations with little experience see the potential problems in leaving, Chambers can play a pivotal role in equipping their members with the tools and strategies to help their employees adapt and thrive. By focusing on workforce development initiatives, chambers can empower businesses to attract, retain, and nurture top talent.
Key Strategies for Chambers
Many chambers are working on workforce development initiatives to ensure the future job market contains individuals who are skilled in what employers will need. However, there are other ways Chambers can help safeguard against the turbulence of another Great Resignation. These ideas include:
- Upskilling and Reskilling Programs: Collaborate with local educational institutions and training providers to offer relevant courses and workshops. This can help existing employees acquire new skills, making them more valuable and engaged in their roles. It also makes businesses more attractive to potential hires seeking opportunities for growth. Communicating these future needs can also help students who are considering career trajectories and what they should study.
- Mentorship and Networking Opportunities: Facilitate connections between experienced professionals and younger workers. Mentorship programs can provide invaluable guidance and support, fostering community and belonging within the workforce. Networking events can also expose employees to diverse perspectives and potential career paths, broadening their horizons.
- Talent Attraction Initiatives: Partner with local schools and colleges to showcase career opportunities in the community. Organize job fairs, career expos, and internship programs to connect businesses with promising young talent. Encourage members to participate in these initiatives, promoting their company culture and values to attract like-minded individuals.
- Thought Leadership and Education: Host Lunch and Learns and educational workshops on topics such as employee engagement, compensation strategies, and flexible work arrangements. (Working from home perks are also a top reason younger employees are seeking out flexible employers and leaving those that are not.) Share insights and best practices from successful businesses in the community. By staying ahead of the curve, chambers can equip their members with the knowledge and tools to adapt to the changing needs and expectations of the workforce.
- Knowledge Matches: On the employee side, chambers can lead educational programs to help younger employees identify the types of areas in which they will thrive. Introducing them to different ways of working, careers, industries, personality assessments, and the like can help young employees discover more about themselves and cut down on the need to job-hop because they’ve realized they don’t like working in a particular job environment or career. Normally, it requires experience to come to these realizations and that can leave an employer in a bad position. Helping younger people get to know themselves better can make the interview process more rewarding for both sides of the table.
Member Business Strategies for Retention and Recruitment
What can businesses do to become employers that are in demand? Chambers can help members understand some of the top draws for employees such as:
- Employee Development. Businesses should provide opportunities for training, mentorship, and career advancement. Recognize and reward achievements, fostering a culture of continuous learning and growth. For smaller organizations that can’t afford career pathing or employee development, the training and educational opportunities at the chamber can be a leveraged perk since chamber events are open to all employees of its members.
- Positive Workplace Culture. Encourage businesses to showcase environments of open communication, collaboration, and inclusivity. They must create a workplace where employees feel valued, heard, and empowered to contribute their best.
- Competitive Compensation and Benefits. Companies should conduct regular salary reviews to ensure pay remains competitive with market rates. (56% of those survey responders who are currently dissatisfied with their job situation cited low pay as the reason, with 44% desiring better benefits.) Comprehensive benefits packages should include health insurance, retirement savings plans, and flexible work options (either work hours or location).
- Flexibility. Competitive businesses should consider remote work options, flexible schedules, and compressed work weeks. By accommodating individual needs and preferences, businesses can attract and retain top talent who value work-life balance.
- Employee Well-being. Sought-after employers promote healthy work habits, encourage breaks, and offer resources for stress management and mental health support. A healthy and happy workforce is a more productive and engaged one.
A Word About AI and Jobs
No conversation about workforce development and resignation would be complete without addressing concerns over AI. The impact of AI on careers is complex and multifaceted. While there is a lot of potential in streamlining operations and efficiencies, we may also experience potential challenges such as:
- Job Displacement. AI automation may lead to the displacement of jobs that involve routine or easily automatable tasks. This could affect workers in manufacturing, customer service, and transportation.
- Skills Gap. As AI usage becomes more prevalent, there will be a growing demand for workers with AI-related skills, such as data analysis, machine learning, and programming. This could create a skills gap, leaving some workers behind if they don’t adapt and acquire new skills. Those with the skills and education to work with AI could see their incomes rise, while those without these skills could be left behind.
To navigate the changing landscape, individuals and businesses need to be proactive. Chambers may decide to incorporate some of the following educational components in their workforce development programs.
- Encouraging Education and Training like updating skills and knowledge to stay relevant in the evolving job market.
- Embracing Lifelong Learning to adopt a mindset of continuous learning and adaptation to keep pace with technological advancements.
- Focusing Careers on Human Skills that are difficult for AI to replicate, such as creativity, critical thinking, emotional intelligence, and interpersonal skills.
- Collaborating with AI and learning to work alongside AI tools and technologies to enhance productivity and achieve better outcomes.
By embracing these strategies, chambers and their member businesses can proactively address the potential challenges of the Great Resignation 2.0. By investing in workforce development, fostering positive workplace cultures, and offering competitive compensation and benefits, businesses have the best hope for retaining their current employees and attracting top talent.
The workforce landscape is evolving rapidly. But with the right approach, businesses (and employees) can survive and thrive in this new era.
