Updated: Jan 6
Hello Friends! Welcome Back!
It's being called "The Great Resignation" or "The Big Quit" of 2021. Last week, the U.S. Bureau of Labor Statistics announced that 4.3 million Americans, or 2.9% of the entire workforce, quit their jobs in August. That was a record-breaking month, piggybacking on previous record months. "The Great Resignation" is real, and it can be seen across virtually all industries. In a new working paper, the UC Berkeley economist Ulrike Malmendier suggests there's something existential behind the Great Resignation: The pandemic and the rise of remote work have changed the way we view our lives and the world.
Why are people quitting their jobs in droves in the midst of a pandemic? I'm hoping to find some answers and see how it affects Virtual Assistants.
What is the "Great Resignation of 2021"
The Great Resignation can be defined as an influx of employees quitting their jobs. The majority of employees quitting their jobs are in the United States. Due to the record number of employees quitting, there seems to be an employment shortage happening. Or is there? We'll discuss that in a moment.
What's causing the resignations?
According to SCORE (https://www.score.org), " The massive migration from office to remote work during the pandemic has had a profound impact on how people think about their jobs. The result is a societal shift in what workers now consider the career status quo".
Key Findings (score.org)
17.9 million people quit their jobs from January to May 2021
Percentage of workers whose positions became remote all or most of the time because of COVID19 say:
40% Have more flexibility to choose their work hours
29% Can better balance work and family responsibilities
19% Are more satisfied with their job
Number of small business start-up applications by year:
2017- 3.19 million
2018- 3.49 million
2019- 3.5 million
2020- 4.35 million
57 million gig workers contribute 1 trillion dollars to the economy annually
Percentage of remote workers:
20% worked from home before the pandemic
71% worked from home during the pandemic
54% want to continue to work from home after the pandemic ends
Factors of the "Great Resignation"
Many people blame Covid for the "Great Resignation". However, other factors are playing a role as well.
"With the surge in Baby Boomer retirement, declines in labor force participation amongst millennials, ebbing birth rates and falling immigration numbers, don't expect the labor shortage to be completely solved in the New Year," said Ron Hetrick, senior economist at Emsi Burning Glass, in an email before the data was released.
Between January 2020 and October 2021, 3.3 million Americans opted to retire, according to new data from the St. Louis Federal Reserve Bank — many more than normal demographic trends had predicted.
The Effects of the "Great Resignation"
According to USA Today (https://www.usatoday.com/story/money/2022/01/04/great-resignation-number-people-quitting-jobs-hit-record/9083256002), The number of workers quitting jobs vaulted to 4.5 million from 4.2 million, above the prior record of 4.4 million reached in September, the Labor Department said Tuesday. That means 3% of workers voluntarily left their positions, matching September's record high.
Employers posted 10.6 million job openings, down from a near-record 11 million the previous month and just below July’s all-time high, Labor said in its Job Openings and Labor Turnover Survey. Openings have topped 10 million for six straight months.
The decline was fueled by a drop of 261,000 openings in restaurants and hotels. Even as vacancies in that industry have fallen from their July peak, quitting and hiring have stayed strong, "suggesting that some of the hiring difficulties might be easing," says Nick Bunker, director of research for Indeed, a leading job site.
Virtual Assistants and the "Great Resignation"
Okay my Virtual Assistant brothers and sisters! It's our time to shine! So lets break out those laptop, desktops, cellphones and start networking. It's our time to shine (yes, bright like a diamond, thank you Rihanna).
With so many people opting to become self employed, work remote only or work a hybrid schedule, many employers are searching for ways to attract new employees. Employers are needing ways to save their businesses.
Per Yahoo Money (https://money.yahoo.com/great-resignation-breaks-records-4-173040318.html), "If you’re on the hunt, Money has plenty of tips for getting a career glow-up in 2022. In fact, you don’t even have to leave the house to find a new job. Side hustles have gone digital: Virtual assistants, pet nannies and play-to-earn gamers are among some of the hottest gigs available online today. And with the help of salary transparency laws — especially in Colorado — you can determine whether a job’s pay fits into your savings goals."
Never Fear, a VA Is Here!
Ok, so that was a little corny. But you get the understanding. With Virtual Assistants being so diverse in their career fields, we are definitely in the right place at the right time.
Many businesses are feeling the financial affects of Covid and many employees quitting. VA's need to remind the businesses hiring a VA could possibly save their business. Point out the positive outcomes of hiring a VA:
No overhead costs (we are remote)
Lower labor costs
Flexibility (whether 100% remote or hybrid, VA's can schedule their days/ times around the business needs)
Payroll reduction: since VAs are not employees, businesses don't need to offer medical/ dental/ 401K, etc
Increased productivity: Virtual assistants can complete assignments in half the time an 8 hour full time employee can do. Why? Because there are no distractions of an office environment, VAs are able to focus and dedicate their time to getting tasks done.
These are just a handful of reasons how/ why businesses are turning to VAs.