The Great Resignation is the term coined to describe the record-breaking number of people leaving their jobs. Although the trend started in 2019, experts predict that the wave of resignation is not yet over. An industry survey revealed that one in five workers globally plans to quit in 2022, and 71% of the respondents cited that pay is one of their main reasons for leaving or changing jobs.
However, adequate remuneration is no longer sufficient to retain qualified workers. Companies now need to direct their efforts on engaging their employees and making jobs fulfilling. Individuals will be more likely to stay at their current jobs if employers focus on engaging and fulfilling their employees and opening opportunities for them to learn and grow. Moreover, individuals want to feel more fulfilled by the work they do and the contributions they make to the organization. The Great Resignation not only changed the way employees perceive their careers but also changed how employers can best attract and retain top talents.
Even if the Great Resignation is most evident in countries like the US, it doesn’t mean that this is not happening in other countries. One of the countries impacted by this phenomenon is Brazil.
The Great Resignation in Brazil
In 2022 alone, a labor agency report in Brazil showed that the number of voluntary layoffs in the country reached 2.9 million. These numbers are a 32.5% increase from the previous year and are the highest level of recorded dismissal since 2005. Authorities believe that the preference for new types of work and the globalization of the labor market are one of the reasons for this trend.
But unlike in the US, the majority of the voluntary layoffs in Brazil are more restricted to a small group of young people with higher levels of education, such as college graduates and doctors. Only 25.4% of the people who left their jobs come from the group with incomplete elementary education. Moreover, professionals working in technology, such as computer applications engineers, systems development analysts, information security administrators, etc., have seen more voluntary layoffs than in any other industry sector.
As a result, only 49.5% of the country’s workforce is working, making it the lowest number of employed people recorded since the measurement began in 2012. Apart from voluntary dismissals, workers who lost their jobs due to the crisis have also contributed to the increase in unemployment rates. Instead of applying for traditional office work, most people today who lost their jobs are now working in the informal sector or the gig economy. Since employment in the gig economy recovered faster than formal jobs, it has been one of the sources of income that individuals can rely on as they find a permanent career that suits their needs.
What Can Companies Do?
The internet and social media are indispensable tools for sharing information, which also makes it one of the places where employers can attract the best talent wherever they are in the world. That’s why it’s no wonder that most companies in Latin America are increasing their investments in digital marketing strategies to 60% and by 85% in the next five years. By posting job vacancies on social networking sites like Facebook and LinkedIn, recruiters have a wider talent pool and can hire the best candidates for the job.
Besides investing in digital marketing, companies can solve staffing issues by investing in strategies that enable their employees to learn and grow at work. A study on employees in the technology industry discovered that learning opportunities in their organizations are one of the reasons why 48% of workers stay at their jobs. Flexibility and professional growth are the other factors why employees remain at work, with 33% and 12%, respectively.
