In May 2021 Anthony Klotz, a psychologist at Texas A&M (Agriculture and Mechanical) University, coined the term ‘the great resignation’ as a way of naming what occurred the month before in America i.e. a record number of resignations in the US workforce.
In New Zealand a lot of media picked up on the term; but it was difficult to understand the concept as the country was experiencing unemployment levels dropping to record lows, and surely a resignation is an outcome to an earlier action or decision.
Then, just last month, along came Bharat Ramamurti, the US National Economic Council Deputy Director, coining a new term ‘the great upgrade’.
And suddenly it all made sense to me, I could understand the reasons why I was receiving five times the usual number of applicants for jobs when there was now unemployment close to 3%:
And the result is ‘the great upgrade’.
Encouraged to believe there is a candidate short employment market businesses now feel they are being forced to consider candidates who feel bold enough to apply for jobs that pay more and offer a better job title but in reality may be at a level above their true capability.
For my clients I am suggesting they may need to find inventive ways to ‘hand-cuff’ their good employees and when recruiting realise that they may need to pay more in salary and benefits than they expected, and/or hire at a lower level and invest in training.
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