What Is The Great Resignation in the Tech Industry?
While the tech industry is one of the world’s most innovative and rapidly growing industries, it’s not without its challenges. Even before the pandemic hit, the industry struggled with several issues, from a shortage of qualified workers to a lack of diversity.
Now, another challenge is on the horizon: the Great Resignation. This term describes the mass exodus of employees from the tech industry as they leave in search of greener pastures. We’ve even seen a number of high-profile executives resigning from major tech companies, such as the recent departure of WhatsApp founder Brian Acton, Danielle Brown as Google’s head of diversity, and Travis Kalanick, the former CEO of Uber.
However, this phenomenon is not only happening in the tech industry. In fact, according to the U.S. Bureau of Labor Statistics, in 2021 alone, over 47 million workers quit their jobs in various sectors, including healthcare, retail, and manufacturing.
So what is this so-called “great resignation”? What are the factors driving this trend? And what’s the impact of this on the tech industry?
Read on to learn more.
The Great Resignation
The term great resignation was mentioned in an article in Bloomberg Businessweek in May 2021, which quoted Anthony Klotz, a management professor at London’s UCL School of Management, who predicted that Covid-19 would lead to pent-up resignations.
Great resignation is a “principle” or “unwritten rule” that suggests employees are more likely to quit their jobs in mass after a crisis as they reassess their priorities and decide whether their current job is still the right fit. And right now, there’s no doubt that Covid-19 has profoundly impacted how we work and has forced many employees to reassess their priorities.
Factors Contributing to Great Resignation in the Tech Industry
While it’s impossible to know precisely why each tech worker has decided to leave their job, some common themes seem to be driving these decisions.
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A Desire for More Work-Life Balance
The tech industry is notorious for its long hours and grueling workdays. While this may have been tolerated (or even desired) in the past, workers now crave a more balanced lifestyle and happy life.
This is especially true for employees who have started families or who have other responsibilities outside of work. While many companies offer PTOs for different employees, they’re simply unwilling to sacrifice their personal lives for their job anymore. Additionally, the pandemic has forced many to re-evaluate what’s important to them. For some, that means spending more time with family or pursuing hobbies outside work.
High Demand for Tech workers
With the ever-growing popularity of technology and artificial intelligence, there is no shortage of companies looking to hire talented tech workers, meaning workers have a lot of options. They can afford to be more selective about the types of projects to work on and the company culture they want to be a part of.
As a result, workers, especially younger ones, are less likely to tolerate poor working conditions or a lack of career growth opportunities. They have little loyalty to one company and are more likely to job-hop until they find the right fit.
In addition to the high demand for tech workers, many are simply unhappy with their current job despite companies’ solid employee retention strategies. This is likely due to several factors, such as long hours, unrealistic deadlines, and a lack of work-life balance.
Furthermore, with the rise of remote work, many tech workers feel isolated and disconnected from their colleagues, leading to burnout and a desire to find a more fulfilling job.
Increasing Cost of Living
Another factor is the increasing cost of living in major tech hubs, such as San Francisco and Silicon Valley. The high cost of living makes it difficult for workers to maintain a good quality of life, particularly those just starting their careers.
Many workers find that they can’t afford to live in the city where they work and are forced to commute long distances, which adds a lot of stress to their lives and make it challenging to maintain a work-life balance. The combination of these factors is causing many employees to reevaluate their career choices and look for jobs outside the tech industry.
Frustration with the Industry
There’s also a growing feeling of frustration with the tech industry, particularly among workers who don’t feel that their companies are doing enough to address the industry’s diversity and inclusion issues.
Despite the industry’s efforts to improve diversity, the number of women and minorities in tech remains low. And many workers feel that their companies need to do more to create an inclusive environment or provide opportunities for career growth.
Lack of Trust in Leadership
This is perhaps the most significant factor driving employees away from their jobs. In today’s environment of constant change and uncertainty, workers are looking for leaders they can trust to steer the ship. When that trust is lacking, it creates a feeling of unease and insecurity.
According to a study by Edelman, only 37% of employees worldwide trust their company’s leadership. This lack of trust has a direct impact on employee engagement and motivation. Furthermore, employees who don’t trust their leaders are more likely to look for other opportunities.
Growing Rift between Workers and Management
There’s a growing rift between workers and management in the tech industry. Employees feel they are not being listened to or valued, and their input is not being used to make decisions about the company’s direction.
This disconnection is causing a lot of employees to become disengaged and disgruntled with their jobs which can cause them to leave the company.
Whatever the reasons, it’s clear that the great resignation is a real challenge that the tech industry will need to address in the years to come. Otherwise, it risks losing some of its best and brightest employees to other industries.
Impact of the Great Resignation on the Tech Industry
The great resignation from the tech industry has profoundly affected the economy. Thousands of highly skilled workers have left their jobs in search of greener pastures, and the resulting brain drain has severely damaged the tech sector’s competitiveness.
Aside from that, the exodus has also put immense pressure on remaining employees, who are now forced to work longer hours and take on greater responsibility. The situation has been exacerbated by the fact that many who have quit are taking their knowledge and expertise with them, making it difficult for companies to replace them.
However, the Great Resignation is not without its silver lining. The departure of many workers has created opportunities for others to step up and fill the void. Additionally, the crisis has forced companies to re-evaluate their operations and become more efficient. In the long run, this may be a positive development for the tech industry.
The tech industry is in a state of flux. The Great Resignation is having a major impact on the sector, but it’s also an opportunity for companies to improve their workplace culture and make their employees feel valued. If they can do this, they’ll be able to retain their employees and keep up with the latest trends and technologies.