The Great Resignation has reshaped workplaces worldwide. Between 2021 and 2023, millions of employees voluntarily left their jobs, forcing businesses to rethink how they attract, engage, and retain talent.
In Australia, 1.3 million workers, 1 in 10, changed jobs between February 2021 and February 2022, marking the highest job mobility rate in a decade, according to the Australian Bureau of Statistics. In the UK, a 2022 survey found that nearly one-fifth of workers planned to leave their jobs within a year.
But rather than slowing down, resignations have continued in many industries. A 2024 PwC survey found that 28% of global workers were “very or extremely likely” to leave their current employer, up from 19% in 2022.
For businesses, this ongoing wave of resignations is more than just a short-term challenge, it’s a sign that modern employee expectations have changed for good. Replacing staff isn’t just disruptive; it’s expensive. Companies that fail to adapt risk losing top talent to competitors that offer better workplace experiences, career growth, and flexibility.
So, how did we get here?
In this blog, we’ll discuss:
- What was the Great Resignation?
- What caused it?
- How did it impact businesses and employees?
- What long-term changes has it created in the workforce?
- Strategies to overcome the Great Resignation
What Is the Great Resignation?
The Great Resignation refers to a wave of employees voluntarily leaving their jobs. This phenomenon started back in 2021 and continued in the following years. Coined by Anthony Klotz, a University College London (UCL) professor, the term described a movement driven by the pursuit of better work-life balance, higher salaries, remote work opportunities, and overall job satisfaction. The COVID-19 pandemic accelerated this trend, forcing businesses worldwide to rethink their employee retention strategies.
Since then, resignation rates have declined. In the UK, job-to-job resignations dropped from 442,000 in Q2 2022 to 181,000 in Q3 2024, according to Statista. In Australia, employee turnover peaked at 21.4% in 2022 before falling to 18.6% in 2023 and 10.8% in early 2024.
However, employee mobility remains high, and new trends suggest further shifts ahead. A recent report from The Australian reveals that millions of Australians are considering changing jobs in 2025 due to financial pressures and dissatisfaction with current work conditions. The Guardian has also reported on discussions happening in Europe about a potential “Great Resignation 2.0.”
As workforce dynamics continue to evolve, businesses must remain proactive in their employee retention strategies to adapt to these ongoing changes.
What Caused the Great Resignation?
The Great Resignation was driven by several factors that reshaped employee priorities and workplace expectations.
Burnout and Work-Life Balance Concerns
The pandemic pushed employee burnout to critical levels, with increased workloads, long hours, and blurred boundaries between work and personal life. Many workers reassessed their priorities, leaving roles that negatively impacted their mental health. In Australia, 42% of employees reported experiencing burnout in 2023, contributing to higher turnover rates.
Toxic Workplace Cultures
Toxic workplace environments played a significant role in the Great Resignation, driving employees to leave jobs where they felt undervalued, unsupported, or subjected to poor management.
According to research by the Chartered Management Institute (CMI) and YouGov, one in three UK employees have quit due to a negative work culture. Another study found that 27% of UK employees left their jobs in the past year specifically because of a toxic workplace.
Factors such as poor leadership, lack of inclusivity, and an unsupportive work environment contributed to high turnover rates. Employers that failed to address these issues struggled to retain top talent, as workers increasingly prioritised healthier and more positive workplaces.
Lack of Career Growth Opportunities
Career stagnation was another major driver, with employees feeling stuck in roles that offered little room for advancement. In Australia, 32% of workers who left their jobs in the 12 months leading up to February 2023 did so to pursue better opportunities or simply seek change.
When employees perceive limited growth potential, they are more likely to seek roles that offer skill development, promotions, and higher salaries. Employers that failed to invest in professional development struggled with retention, as workers prioritised career mobility over job security.
Demand for Flexibility
The shift to remote and hybrid work reshaped workplace expectations. Employees who experienced the benefits of flexibility during lockdowns were reluctant to return to rigid office-based roles. The same Guardian report mentioned above also found that 56% of UK workers would quit if forced back into the office full-time.
Seeking Better Opportunities
Higher salaries, improved benefits, and more fulfilling roles attracted employees to new opportunities. Competitive job markets in the UK and Australia gave workers more bargaining power, leading many to switch jobs for better pay and conditions. In 2024, 1 in 4 UK employees still planned to change jobs in search of better prospects.
How Did the Great Resignation Impact Businesses and Employees?
Challenges Businesses Faced
High resignation rates led to labour shortages and skills gaps, increasing hiring costs and causing a loss of institutional knowledge. Many businesses struggled to fill vacancies, particularly in specialised roles, forcing them to offer higher salaries, improve benefits, or invest in upskilling and reskilling programs to remain competitive.
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Workers gained more bargaining power, prioritising work-life balance, flexibility, and professional growth over job security alone. Companies that failed to offer career development, hybrid work options, or supportive work environments saw higher turnover rates.
Long-Term Workforce Shifts
- Flexibility: Hybrid and remote work became the norm rather than a perk.
- Career Growth: Employees increasingly value continuous learning and progression opportunities.
- Workplace Culture: A shift towards healthier, more inclusive environments emerged as a key retention factor.
10 Strategies to Overcome the Challenges of the Great Resignation
1. Improve Employee Experience And Workplace Culture
A strong corporate culture is one of the most effective ways to retain employees. Toxic environments and poor employee experiences were key drivers of the Great Resignation. To address this:
- Conduct an employee experience audit to evaluate pain points in recruitment, employee onboarding, and day-to-day work
- Foster a culture of employee recognition and belonging by celebrating their achievements and contributions
- Appoint an Employee Experience Officer or champion within HR to ensure ongoing improvements
2. Enhance Leadership And Communication
Poor leadership, communication gap, and a lack of transparency contribute to employee dissatisfaction.
To improve leadership and workplace communication:
- Encourage open dialogue through regular one-on-one check-ins and company-wide updates.
- Train managers in emotional intelligence and people management, ensuring they support employee well-being.
- Provide clear direction on company goals and employee roles, ensuring alignment between leadership and staff
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Rigid work structures are a thing of the past. Employees, particularly younger employees, now expect greater control over their schedules. To meet these expectations:
- Offer hybrid or fully remote work options where possible
- Implement flexible start and finish times to accommodate individual needs
- Encourage work-life balance by discouraging an always-on culture and setting boundaries for after-hours work
4. Strengthen Career Development Opportunities
Career stagnation is a major reason employees leave jobs. If employees don’t see a future with your company, they’ll seek one elsewhere. To prevent this:
- Develop clear career progression pathways so employees understand their growth potential
- Implement mentorship programs to help employees learn from senior staff and develop new skills
- Provide continuous learning opportunities, including job shadowing, leadership training, and specialised courses
5. Invest In Employee Training and Upskilling
With skills shortages affecting industries like healthcare, technology, and aged care, investing in upskilling is essential. Businesses can:
- Offer industry-recognised training to help employees build valuable skills
- Implement digital learning platforms so frontline and deskless workers can train on the go
- Encourage employees to gain micro-credentials to stay competitive in evolving industries
6. Use Data and Analytics To Predict Workforce Needs
HR teams must take a data-driven approach to strategic workforce planning. Businesses can:
- Use predictive analytics to identify trends in employee turnover and satisfaction
- Monitor employee engagement surveys to address concerns before they escalate
- Analyse hiring and retention patterns to improve recruitment strategies
7. Develop Strong Offboarding And Rehiring Strategies
Many employees who left during the Great Resignation are open to returning—if they had a positive exit experience. To create a strong offboarding process:
- Conduct exit interviews to understand why employees are leaving and gather feedback
- Maintain relationships with former employees through LinkedIn alumni groups or company newsletters
- Ensure the departure process is professional and respectful, leaving the door open for rehires
8. Strengthen Employer Branding To Attract Top Talent
A company’s reputation directly impacts its ability to attract and retain talent. Strengthening employer branding includes:
- Showcasing employee success stories to highlight valued employees and a positive work environment
- Ensuring online reviews on sites like Glassdoor reflect company improvements
- Demonstrating a commitment to DEI (Diversity, Equity, and Inclusion) and employee well-being
9. Adapt To AI And Automation In The Workplace
The rise of AI in the workplace is transforming how businesses operate, enhancing efficiency without replacing human employees. When implemented strategically, AI and automation can improve productivity, streamline workflows, and support employee development. Businesses can:
- Use AI tools to automate repetitive tasks, allowing employees to focus on higher-value, strategic work.
- Implement AI-driven training programs to personalise learning experiences and upskill employees efficiently.
- Leverage AI in HR processes, such as recruitment, employee engagement tracking, and workforce planning, to improve decision-making and retention strategies.
10. Build Internal Mobility And Promotion Pathways
Employees are more likely to stay if they see opportunities for advancement and skill mobility within their organisation. When businesses prioritise internal mobility, they retain top talent and reduce hiring costs and strengthen workforce engagement.
To foster career growth and skill mobility, businesses can:
- Encourage lateral moves to help employees explore different roles while developing new skills
- Offer fast-track promotion programs for high-performing employees, ensuring clear progression pathways
- Implement career mapping tools that allow employees to identify skill gaps and plan their long-term growth
The Path Forward for Businesses After the Great Resignation
The Great Resignation reshaped the workforce, making flexibility, career growth, and workplace culture essential for retention. While resignation rates have stabilised, businesses that fail to adapt risk losing top talent.
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Our platform enables organisations to create structured career pathways, making internal mobility a reality and reducing the risk of career stagnation. With accessible digital learning solutions designed for frontline and deskless workers, businesses can close skill gaps, improve retention, and build a more agile workforce.
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The Great Resignation FAQs
Is the Great Resignation Still Happening?
The Great Resignation peaked between 2021 and 2022, but resignation rates have since stabilised. However, Great Resignation statistics from 2023 indicate that workforce mobility remained high in certain sectors, particularly those facing ongoing skills shortages. While mass resignations have slowed, employees continue to prioritise flexibility, career growth, and workplace culture, meaning businesses must adapt to retain talent.
Which Industries Were Most Affected by the Great Resignation?
The industries most impacted by the Great Resignation included healthcare, aged care, hospitality, retail, education, technology, manufacturing, and logistics. While some sectors have stabilised, healthcare and aged care continue to experience workforce shortages.
How Did the Great Resignation Impact Salaries and Job Benefits?
The impact of the Great Resignation in Australia, UK, and other regions led to higher wages, better benefits, and more flexible work options. Many companies introduced wellness programs, mental health support, and professional development opportunities to attract and retain employees. While salary growth has slowed due to economic uncertainty, flexible work arrangements and career development remain key priorities for job seekers.
What is the “Big Stay,” and How Does it Compare to the Great Resignation?
The “Big Stay” refers to the stabilisation of resignation rates as employees choose job security over career moves. Unlike the Great Resignation, which saw mass voluntary exits, the Big Stay suggests employees are staying put unless they receive significant incentives.
How Can Small Businesses Recover From the Effects of the Great Resignation?
Small businesses can adopt the same core strategies outlined in this article but should tailor them to fit their resources and limitations. While large-scale salary increases may not be feasible, focusing on employee development, workplace flexibility, and a strong company culture can still drive retention. Investing in training, career growth opportunities, and recognition programs can make a meaningful difference, even on a smaller budget.
What Role Did Remote Work Play in the Great Resignation?
Remote work was both a driver and a solution. Many employees resigned when forced back into offices, while others sought remote-friendly employers. This shift led to a rise in global hiring, with businesses accessing talent beyond their local markets. Companies that embraced hybrid and remote models benefited from a wider talent pool and higher retention rates. While some organisations are reversing remote policies, flexibility remains a top priority for employees.
Is Another Wave of Mass Resignations Expected in the Future?
While resignation rates have stabilised, the future remains uncertain. Discussions around a “Great Resignation 2.0” suggest that another wave could emerge, but it’s unclear whether it will reach the same scale. Economic conditions, workplace expectations, and advancements in AI in the workplace will continue to shape job mobility. Businesses must stay adaptable by prioritising career growth, skill mobility, and employee engagement to navigate potential workforce shifts.
