Ryan Silberman | Group CEO | Webfluential | Member | YPO Africa | mail me |
New research by International Workplace Group (IWG) reveals that hybrid working is the most sought-after benefit for job seekers and as important as financial benefits.
The term ‘Great Resignation’, coined in May 2021 by Anthony Klotz, a professor of management at Mays Business School, describes a swell of voluntary resignations amid the COVID-19 pandemic.
Reasons for mass resignations
The reasons for this season of mass resignations are varied but generally relate to the newfound freedom of remote work and flexible schedules, coupled with pre-existing job dissatisfaction, particularly among Millennials and Generation Z.
But the industries hardest hit by quits in the US aren’t the same sectors that are seeing resignations in South Africa. Similarly, the reasons for leaving employment in South Africa differ significantly from those provided by new job seekers abroad, where evidence of the Great Resignation is stronger.
While a beat or two behind, South Africa is starting to see signs that point to the same phenomenon.
South Africa’s unemployment rate reached its highest levels of 35.3% at the end of 2021. And an abundance of unskilled labour in low-wage positions means the majority of employed South Africans won’t be looking to quit abruptly anytime soon, and the Great Resignation will look different.
The emerging gig economy
A large factor in South Africa’s growing resignations is the emerging gig economy and that people leaving their jobs were doing so out of desire rather than a necessity to make ends meet.
South Africa is a good example of this phenomenon, we’re finding that it’s typically highly skilled people who are migrating away from salaried jobs, not those living on the breadline. Anecdotally, and specifically across the creative industry, we’re increasingly seeing these top performers leave their jobs to work for themselves and consult back to their previous employer, on their own terms.
Many skilled South Africans are leaving their jobs for opportunities abroad. This is not a new phenomenon but is more worrying for South Africa within the context of the Great Resignation, whereby employment opportunities abroad, specifically for skilled workers, have increased dramatically.
Given the demand for highly skilled jobs in South Africa, the scarcity of talent for these highly skilled jobs, and the fact that we have highly skilled South Africans landing jobs in countries all over the world, I would expect more job-hopping and resignations in SA, even with our high unemployment rate.
Hybrid working
Job seekers now view hybrid working as a pre-requisite for new roles, with a new study revealing it is now as important as other financial benefits including health insurance, life insurance and group income protection.
“We’re right at the start of the biggest transformation in the way we work that we’ve ever witnessed. The biggest danger for firms is thinking that we’re the end of the change; we’re just at the start and companies need to prepare themselves.“
– Bruce Daisley, best-selling Author of The Joy of Work and former EMEA Vice-President of Twitter
With a buoyant job market after a challenging couple of years, workers are demanding more of their employers and their roles.
“Gone are the days when salary was the only factor when considering a job offer, and nothing better demonstrates this than the rise of hybrid working. Daily commuting is an expensive and unnecessary practice, and it’s clear to see that workers are keen to take back control of this time. Employers who don’t offer hybrid working are going to miss out on the best talent. Not only do employees benefit from a dramatically improved work-life balance, but by switching to a hybrid model, they save money, all while minimising their carbon foot print.”
– Joanne Bushell, MD of IWG, South Africa
The number of employees visiting IWG’s network across South Africa steadily increased over the past few months, demonstrating an increasing demand for hybrid work solutions. In 2021 alone, IWG added over two million new customers to its global network of flexible workspaces.
