The past two years have ushered in a period of unprecedented upheaval, transforming global economies, organizational structures, and individual perceptions of work. The ongoing pandemic has served as a massive, rapid-paced experiment, forcing a fundamental re-evaluation of traditional workplace norms and accelerating shifts that were, in some cases, already nascent. This transformative era has brought forth a complex interplay of emerging trends, categorized broadly into ‘Purpose,’ ‘People,’ ‘Process & Policy,’ and ‘Polarisation & Activism.’ This article, part of a comprehensive series exploring these shifts, delves specifically into the critical ‘People’ trends, examining how the balance of power has shifted towards employees and the profound implications for talent attraction, retention, and the broader agenda of Diversity, Equity, and Inclusion (DEI).
The Pandemic as a Catalyst for Workforce Transformation
Before the arrival of COVID-19, the global labor market was already experiencing gradual shifts, driven by technological advancements, demographic changes, and evolving employee expectations. However, the pandemic acted as an unparalleled accelerant, compressing years of potential evolution into a matter of months. Lockdowns, health crises, and the sudden shift to remote work models forced individuals to reconsider their priorities, their relationship with their employers, and the very meaning of "work." For organizations, it necessitated an urgent pivot to new operational paradigms, with talent management quickly emerging as a central strategic concern. As economies, organizations, and individuals worldwide grapple with the aftermath and ongoing challenges of the pandemic, the centrality of talent has never been more apparent. Employees, armed with new perspectives and often facing a tight labor market, now find themselves in a significantly stronger position to articulate their demands regarding what will attract them to and retain them within an organization. This newfound leverage marks a significant power shift, moving away from a purely employer-driven market towards one where employee voices carry substantial weight.
The Genesis of the Great Resignation: A Global Phenomenon
One of the most defining "People" trends of the pandemic era has been "The Great Resignation," a term coined to describe the surge in employees voluntarily leaving their jobs. While the concept gained widespread attention in 2021, researchers have noted that a building trend of increased resignations predated the pandemic. Factors such as stagnant wages, lack of career progression, and dissatisfaction with workplace culture had already begun to erode employee loyalty in certain sectors. However, the unique circumstances of the pandemic—including widespread remote work, increased introspection, and a re-evaluation of work-life balance—amplified these underlying sentiments, turning a simmering discontent into a full-blown exodus.
A global survey released by Microsoft in March 2021 provided early indications of this brewing storm, revealing that over 40% of the global workforce was considering departing from their current employers within the year. While intent to resign does not always translate into actual resignations, this data point signaled a significant shift in employee sentiment and a looming talent challenge for businesses worldwide.
The ensuing months brought concrete evidence of this trend. In the United States, August 2021 saw an unprecedented 4.3 million Americans voluntarily quit their jobs, according to data from the Bureau of Labor Statistics (BLS). This mass exodus coincided with a staggering 10.4 million open job vacancies during the same month, creating a severe imbalance between labor supply and demand. Across the Atlantic, the United Kingdom experienced a similar phenomenon, with the Office for National Statistics (ONS) reporting a record high of over 1 million open job positions during the same period. The implications extended to continental Europe, where German company leaders, in the EU’s largest economy, reported an 11% jump in their concerns about the lack of skilled employees within just three months, reaching 34.6% by July 2021, as noted by the Ifo Institute. These statistics underscore a global talent concern that the pandemic undeniably accelerated, transforming it from a localized issue into a pervasive economic challenge.
Looking ahead, these talent gaps are projected to persist. A Willis Towers Watson survey in August 2021 found that 70% of U.S. employers expected difficulties in hiring and retaining workers to continue into the following year, with 61% explicitly reporting struggles with employee retention. This signals a long-term structural shift in the labor market rather than a temporary anomaly.
Demographics and Sectoral Impacts: Who is Leaving?
Analysis of "The Great Resignation" reveals distinct patterns in who is choosing to leave and from which sectors. Mid-career professionals, typically those with 3-5 years of experience, have shown a notably higher propensity to resign, with rates increasing by as much as 20% from pre-pandemic levels. This demographic often finds itself at a crossroads, having accumulated sufficient experience to be marketable while also being young enough to pivot careers or seek environments that better align with their evolving values. They are often burdened with increasing family responsibilities, making work-life balance a critical factor, and may also be at a stage where they feel overlooked for promotion or lack clear career progression.
Spatially, the tech and healthcare sectors experienced particularly high resignation rates. Both industries faced immense demand and pressure during the pandemic—tech due to the sudden reliance on digital tools for remote work and communication, and healthcare due to the direct strain of the global health crisis. The intense workload, burnout, and often inadequate recognition contributed to significant employee turnover in these critical areas. For instance, healthcare workers, already facing high-stress environments, grappled with unprecedented patient loads, PPE shortages, and emotional trauma, leading many to re-evaluate their careers. Similarly, tech professionals, while benefiting from remote work, often faced "always-on" cultures and increased demands for digital transformation, leading to burnout.
While sectors like service and hospitality have historically experienced high turnover, the pandemic shed new light on the often-poor working conditions within these industries. What shifted was not necessarily the rate of resignations, but rather the public’s awareness and empathy towards the challenges faced by these essential workers. This increased scrutiny contributed to a broader societal conversation about fair labor practices and the value of frontline employees. Furthermore, across various sectors, there has been a rise in what has been termed "Rage Quitting"—spontaneous, on-the-spot resignations by workers who can no longer tolerate negative or toxic work environments. This phenomenon highlights a stark realization among employees that they have options and are increasingly unwilling to compromise their well-being for unfulfilling or disrespectful employment.
The Great Divergence: An Unequal Recovery and Global Employment Crisis
While "The Great Resignation" often conjures images of empowered employees proactively seeking better opportunities, it is crucial to acknowledge "The Great Divergence"—the stark inequalities embedded within the current economic recovery. Not all pandemic-era employment changes were voluntary resignations; a significant portion constituted unwanted job losses, further exacerbating the global employment crisis. This divergence underscores the need for an inclusive recovery that addresses the multifaceted impacts of the pandemic on different segments of the workforce.
According to the Organisation for Economic Co-operation and Development (OECD), there are now 20 million fewer people in work in OECD countries compared to the start of the pandemic, with over 110 million fewer jobs worldwide. The International Labour Organization (ILO) further estimates that global hours worked in 2021 were 4.3% below pre-pandemic levels, equating to a loss of 125 million full-time jobs. Critically, the OECD highlighted that the reduction in working hours disproportionately affected low-paid jobs, deepening existing economic disparities. These were often frontline workers in sectors like retail, hospitality, and informal economies who lacked the safety nets or the ability to work remotely. While global unemployment rates showed a slight decline as of May 2021, they remained higher than before the pandemic, indicating a persistent deficit in full employment and a structural challenge in matching available talent with suitable opportunities.
This context transforms the discussion from merely managing voluntary departures to actively engineering an inclusive approach to talent and employment. It demands a holistic strategy that not only addresses the motivations behind "The Great Resignation" but also mitigates the fallout from "The Great Divergence," ensuring that the recovery is equitable and reaches those who suffered involuntary job losses or faced reduced working hours. Policymakers and businesses must collaborate on initiatives for reskilling and upskilling programs targeting displaced workers, particularly those from vulnerable populations, to prevent long-term unemployment and widening societal gaps.
Shifting Power Dynamics and the Employee Imperative
The pandemic has irrevocably sharpened organizational attention on the imperative to value employees and cultivate truly inclusive workplaces characterized by fair labor practices and supportive policies. The era of uncertainty, while stressful for many, has also served as a powerful catalyst for introspection and change. For some, it has prompted a profound rethinking of their current situations, leading them to actively pursue new opportunities that better align with their personal and professional aspirations. The act of quitting has become a powerful statement, an assertion that "we can do better"—a collective demand for more meaningful work, better conditions, and greater respect.
No organization can now afford to ignore the undeniable impact of workplace culture and employee experience on its ability to attract and retain top talent. These factors are no longer secondary considerations but fundamental drivers of organizational success and, by extension, societal economic growth. The call for "people-centred" work cultures has resonated through global dialogues, forming a cornerstone of initiatives like "The Great Reset" and various "build back better" programs as the world emerges from the pandemic’s immediate grip. These movements recognize that sustainable recovery and future prosperity are inextricably linked to creating work environments where individuals feel valued, supported, and empowered.
This shift has prompted various reactions from related parties. Business leaders, initially caught off guard, are now increasingly vocal about the need for adaptive HR strategies, investment in employee well-being, and a focus on corporate social responsibility. Unions and labor advocacy groups have seized the moment to push for stronger protections, fairer wages, and improved working conditions, particularly for essential workers. Governments are exploring new social safety nets, retraining programs, and policies to support hybrid work models and address mental health in the workplace. The consensus is growing that a return to pre-pandemic norms is neither feasible nor desirable, and a proactive, collaborative approach is essential.
Redefining Talent Strategy and DEI in the New Era
The dual forces of "The Great Resignation" and "The Great Divergence" present both challenges and unparalleled opportunities for organizations to embed Diversity, Equity, and Inclusion (DEI) at the heart of their talent strategies. An inclusive recovery is not merely an ethical ideal but a strategic necessity. Companies must move beyond superficial DEI initiatives to implement systemic changes that address historical inequities and build genuinely inclusive cultures.
This involves:
- Re-evaluating Compensation and Benefits: Ensuring fair pay, comprehensive health and wellness benefits, and robust support for work-life integration. This includes reviewing pay equity, offering mental health services, and flexible benefits packages that cater to diverse employee needs.
- Prioritizing Employee Well-being and Mental Health: Acknowledging the profound toll of the pandemic and implementing proactive measures to support employees’ psychological safety and resilience. This can range from providing access to therapy and counseling to promoting a culture that destigmatizes mental health discussions and encourages boundaries between work and personal life.
- Fostering Inclusive Leadership: Training leaders to be empathetic, transparent, and adept at managing diverse teams in hybrid or remote settings. Inclusive leaders actively seek out diverse perspectives, challenge their own biases, and create environments where all employees feel heard and respected.
- Creating Pathways for Growth and Development: Offering clear career progression, reskilling, and upskilling opportunities to retain talent and address skill gaps. This is particularly crucial for supporting internal mobility and providing opportunities for individuals from underrepresented groups to advance.
- Enhancing Workplace Flexibility: Moving beyond a one-size-fits-all approach to work arrangements, embracing hybrid models, and trusting employees to manage their work effectively. True flexibility encompasses not just where people work, but also how and when, accommodating diverse life circumstances.
- Addressing Systemic Bias: Proactively identifying and dismantling biases in hiring, promotion, performance management, and daily interactions to ensure equitable opportunities for all. This requires data-driven analysis of HR processes and the implementation of nudges and interventions designed to mitigate unconscious bias.
The call for a "fairer to all people" approach to talent and employment is a direct response to the pandemic’s illumination of pre-existing vulnerabilities and inequalities. It demands a proactive stance from employers, policymakers, and societal leaders to reset the foundations of work. This is the moment to make profound changes, leveraging the current flux to build more resilient, equitable, and human-centric workplaces.
The Path Forward: Towards an Inclusive and Resilient Workforce
The journey through the pandemic has been a stark reminder that the world of work is not static but a dynamic ecosystem shaped by global events, technological advancements, and human aspirations. The "People" trends observed—from the empowered individual seeking purpose and better conditions to the vulnerable populations facing job losses—collectively underscore the urgency of an inclusive approach to recovery and future planning.
Organizations that embrace this paradigm shift will be those that thrive. They will attract the best talent by demonstrating genuine commitment to employee well-being, fostering cultures of belonging, and providing opportunities for meaningful work. Conversely, those that cling to outdated models risk further attrition and diminished competitiveness. The broader impact extends to national economies, where a robust, inclusive workforce is fundamental for sustained growth and innovation.
For leaders and DEI change-makers, the current landscape offers a unique opportunity for reflection and strategic action. The critical questions to consider revolve around how these profound shifts manifest within specific organizational contexts and what targeted interventions are needed to foster an inclusive environment. This includes examining: How can we ensure equitable access to flexible work arrangements? Are our talent acquisition strategies reaching diverse pools of candidates, particularly those displaced by the "Great Divergence"? How are we measuring and addressing employee burnout and mental health needs across different demographics? Are our leaders equipped to lead inclusively in a hybrid world? What mechanisms are in place to solicit and act upon employee feedback regarding culture and experience?
The insights from this pandemic era necessitate a fundamental rethinking of how we design work, lead teams, and cultivate organizational cultures. It is a moment for courageous leadership, empathetic policy-making, and a collective commitment to building a future of work that is truly inclusive, equitable, and sustainable for all.
Acknowledgements and Resources
The insights presented in this series draw upon extensive research and discussions with experts in the field. We extend our gratitude to Barry Phillips for inviting Lisa to deliver an HR Master Class as part of Legal Island’s initiative to support DEI change-makers. Her September 2021 session provided a valuable platform for discussing these pandemic-era research trends and their implications for DEI.
We trust this summary of emerging workplace trends has stimulated new areas for reflection as organizations continue to prioritize DEI and inclusive leadership. For advisory consulting, coaching, and speaking engagements on these critical topics, please reach out to us at [email protected].
To further support reflection and action, several Inclusion Nudges from our guidebooks are particularly relevant for navigating these ‘People’ trends:
- Retention with an Alternative Future Vision in The Inclusion Nudges Guidebook
- Talent Readiness & Mobility in Colours & Shapes in The Inclusion Nudges Guidebook
- Colour Code People to Ensure Meritocracy in The Inclusion Nudges Guidebook and Inclusion Nudges for Leaders
- Social Shuffle to Include Others in The Inclusion Nudges Guidebook and Inclusion Nudges for Leaders
- Ask Flip Questions to Change Your Perceptions in the Moment in The Inclusion Nudges Guidebook, Inclusion Nudges for Leaders, Inclusion Nudges for Motivating Allies, & Inclusion Nudges for Talent Selection
For those interested in exploring the broader context of pandemic-era shifts, the other articles in this series are available on the Inclusion Nudges blog: PROCESS & POLICY, POLARISATION & ACTIVISM, and PURPOSE, along with the FULL ARTICLE. Additional blog posts such as "Ally by Actions – Not by Posting on Social Media," "Ally Through Empathic Perspective Taking," and "Ask Lisa & Tinna: How Can We Ensure Intersectionality is Best Reflected in KPIs" offer further insights into fostering inclusive environments.
