That Great Resignation Thing is Real, Says Aon

There is lots of talk about the Great Resignation post-Covid, but is it real? The answer is that it probably depends upon your job function and salary. In these inflatinary times, many people at lower levels are only too happy to move and get an extra £2000 a year to cope with rising bills. If you are already well up the ladder on £65,000 plus and plugged into the management loop, then why would you leave, unless you were poached by a rival?

Here’s some data from Aon;

Aon plc (NYSE: AON) reported a 41 percent spike in voluntary employee departures last year amid the “Great Resignation” in the United States, according to data from the firm’s Salary Increase and Turnover Study. Aon, a leading global professional services firm, reported 21.8 percent of U.S. employees left their jobs in 2021, of which 17.2 percent departed voluntarily. In 2020, 19.7 percent left employers, of which 11.9 percent departed voluntarily.

“The spike we’ve seen in voluntary departures quantifies the challenges employers face during this period we call the ‘Great Resignation,'” said Michael Burke, CEO for Human Capital Solutions at Aon. “Employers must look to the underlying root cause and not merely treat the symptoms. They will need to review total rewards strategies and look at resilience, agility, wellbeing and purpose in order to retain and attract top talent in their respective industries. A tight labor market will continue to challenge employers in the near term.”

Figures come from Aon’s Human Capital Solutions bi-annual Salary Increase and Turnover Study, which is a global survey of nearly 2,000 employers. The report provides insights on salary increases and employee retention powered by industry-leading data and analytics that reflects how broader economic circumstances impact the talent landscape.

The study also shows:

• Average budgeted salary increases in 2022 reached 5.2 percent, up from 4.5 percent last year in the U.S. This includes merit raises and promotions.
• Forty percent of U.S. employers say they will hire aggressively in 2022, while 46 percent plan to hire at a normal pace, 13 percent will be very selective and 1 percent will freeze hiring.
• Energy (10.6 percent), construction (15 percent) and financial services (15.6 percent) had the lowest voluntary departure rates among industries measured.

The report includes measurable data samples from 10 industries, which include business consulting, construction/real estate, energy, entertainment, financial services, life sciences, manufacturing, retail/hospitality, technology and transportation.

“We use these data insights to provide advice and solutions that give employers from an array of industries the clarity and confidence needed to make better decisions to protect and grow their business,” said Michael Deeks, global head of the data business for Human Capital Solutions at Aon.

“It’s a hot job market out there and as a result, we are seeing turnover grow and many companies allocate more money in their salary budgets.”

To learn more about the report, click here.