Understanding the hardest hit sectors can help prepare for hiring needs.
By Marta Chmielowicz
Almost half of Americans expect to look for a new job as the pandemic continues. According to Microsoftâs 2021 Work Trend Index Report, 41% of the global workforce is likely to consider leaving their current employer within the next yearâand that number jumps to 54% when considering Generation Z alone. Similarly, 46% of employees are planning to make a major pivot or career transition.
These alarming figures reveal a harsh new reality for employers: Although millions remain unemployed, workers are reevaluating their options and talking with their feet.
âWeâre seeing that attrition volumes are spiking, and itâs not just those that have been on hold because of COVID. That coupled with the rise in severe labor shortages is concerning,â says Kristin Thomas, head of U.S. at Resource Solutions.
The mass exodus of employees is not hitting every industry equally. Thomas says that the manufacturing, healthcare, retail, and hospitality sectors are seeing high attrition due to fatigue and burnout.
âEmployees in these sectors are deciding to change industries due to burnout,â she explains. âFrontline workers in retail and hospitality donât feel safe in those roles, and many now have more opportunities to work from home. Manufacturing was short staffed to begin with but now thereâs a wage warâpeople are willing to leave for a competitor for a minimal wage or schedule change.â
This is confirmed in the research: Nearly one in five Microsoft survey respondents say their employer doesnât care about their work-life balance, over half (54%) feel overworked, and 39% feel exhausted.
Industries that rely heavily on technology talent, like banking, engineering, and pharma, are also being affected. âIâve never seen such a high demand for tech talent,â Thomas says. “When people started working from home, these organizations had to adapt to a new way of working. Organizations need new technology to keep up with the market, and that has increased the need for tech talent. Those individuals are now able to demand remote work, higher salaries, different benefits packages, and more flexibility.â
To cope with these labor market trends, organizations across industries will need to rethink their employer value propositions or risk losing valuable talent.