Despite the gloomy economic predictions pointing us towards a recession, you might have noticed that ‘We’re hiring!” signs seem to be everywhere at the moment. One of the key signs of recession is usually skyrocketing unemployment rates - yet we seem to be in the opposite position.
In Q2 of 2022, New Zealand saw record lows in unemployment rates. Labour retention is becoming increasingly difficult, and companies, all the way from your local cafe to the sought-after tech giant, are desperate for skilled workers.
What’s going on?
To put it succinctly, we’re in the midst of the Great Resignation. Coined by Professor of Management at Texas A&M, Dr. Anthony Klotz, this term is used to illustrate the acceleration of the trend of people leaving their jobs as well as the fierce war for talent that’s gripping organisations as a result.
Being in another “Great” trend is enough to put alarm bells in our heads - because, let’s face it, other “Great’ trends haven’t been so kind to us before (Great Depression, Great Recession…). The title aptly indicates how far-reaching the impact will be.
For health and safety leaders, this phenomenon is both a blessing and a curse. High turnover rates are typically not a great thing for organisations, and points to underlying issues that might be sending people out of the door.
A poor safety culture, for example, makes the workplace unnecessarily difficult to thrive in, causing people to leave. However, this isn't reason to fret - not yet, anyway. High turnover brings some surprising benefits for safety leaders that we tend to gloss over, helping us to reframe this difficult situation as an opportunity for growth.
Before we go there, let’s first understand the circumstances and psychology that underpin the Great Resignation.