Re-Valuing Labor: Reforms for Workers

Pam Sornson, JD

Corporations aren’t the only entities that are questioning how ‘work’ should be valued in the post-COVID environment. Workers are also revising their relative merit within their employers’ organizations and realizing that they want and need more than just a paycheck from their jobs. Over 48 million Americans left their jobs in 2021, and over 50 million did the same thing in 2022, a development now known as the Great Resignation. Gartner labels the phenomenon driving the exiting workers the ‘Great Reflection,’ as they seek more meaning in how they spend their time; old-style occupational valuation makes them wonder if the ‘nine-to-five’ obligation is still worth their effort. Companies looking to retain their experienced workforce and slow the talent and human resource drain are now also seeking ways to respond to the increasing demand that ‘working’ should also afford ‘meaning.’

The Pandemic’s Short-term Impact on Workforce

The COVID-19 pandemic caused unprecedented changes in how the world works. That global health crisis triggered an equally global re-evaluation of what is truly important in life, as millions of people succumbed to the virus and millions more were compelled to move on in the face of those losses. In response to those revelations, thousands elected to change their work circumstances to better reflect what is truly meaningful to them. Many people are no longer willing to spend precious time working in occupations that provide a paycheck but little more.

Recent research reveals several reasons why there was a mass exodus of workers from every kind of occupation throughout the course of and after the pandemic:

Many felt unappreciated by their employers, who paid them less than they knew they were worth. In a Pew Research survey, 63% of respondents said low pay was a top contributor to their decision to leave.

Many respondents (also 63%) quit because their occupations offered no opportunity to advance their careers. They cited a stagnant job placement with little or no control over when or how they performed their work. That lack of control over work hours was particularly aggravating, especially in cases when the work itself was not time-sensitive. They determined that maintaining that unfulfilling and limiting employment status quo was no longer an option.

Coupled with the low pay was the lack of respect many workers felt while on the job. More than half (57%) of the survey group stated that their employers did not notice or recognize their full slate of talents and skills.

Others left because they felt overworked or underworked by their organization, had challenges obtaining child or family care, or needed benefits that weren’t offered (paid time off or healthcare insurance, for example). Still others decided it was as good a time as any to relocate to a new community better suited to their needs and tastes.

In all cases, workers determined they wanted a better life than their current job could give them and elected to move on despite the risks entailed in that process.

Impact on Industry

The mass resignation phenomenon obviously impacted employers and industries, too. Typically, companies don’t consider the potential problems that might arise if their workforce suddenly shrinks or if key workers elect to go elsewhere. Those that were unprepared often found that they could not respond appropriately to their customer’s needs without an adequate staff, which caused many businesses to fail.

Also, some industries were more affected by the phenomenon than others. Throughout the pandemic, the education, healthcare, retail, hospitality, and transportation industries experienced significant workforce shrinkage. In some cases, jobs just disappeared as public health overseers implemented ‘social distancing’ and other coronavirus safety measures. In other instances, occupations were permanently ‘retired’ as machines took over the labor. And in many circumstances, job openings were left unfilled because no one wanted to do the work. Certainly, today’s current workforce and employment trends are decidedly different than they were just three years ago.

Impact on Workers

Fortunately, the mass resignation episode did not also result in higher unemployment. Instead, many job seekers were able to leverage their skills and talents into positions that better matched their capacities and their preferences. Savvy potential employers, also very aware of the ongoing employment migration, had modified their open positions to facilitate ‘sustainable careers‘ for these new hires. They added benefits and other employee-facing resources that met the candidate’s newly elevated expectations. Additionally, many organizations adjusted the expectations of unfilled job openings to emphasize the ‘soft skills’ that enhance daily activities. This skill set includes analysis, reasoning, and decision-making abilities that extend beyond typical day-to-day duties. Workers who take these hard- and soft-skilled jobs often make better money, have more flexibility in their work conditions, and can actually have an influence on the fortunes of the enterprise. Not surprisingly, these ‘enhanced’ occupations are very attractive to workers who have been asking for what they offer.

The Pandemic’s Long-term Impact on Workforce

New data suggest that the Great Resignation is receding or is over, as the ‘quit rate’ returned to the average rate experienced in 2019. But that doesn’t mean the work world has returned to its former self. Instead, many organizations have embraced the expectations of their workers as the ‘new normal’ and are taking steps to provide a truly ’employee-friendly’ work environment. They are adding to every employee’s hiring package benefits and perks that were previously reserved only for the upper echelon of leadership. And, as workers return to work (both in the office and remotely), they gain substantially better occupational situations than those they left behind. Many companies now offer, as a matter of course:

mental heath support (often in conjunction with better physical health benefits, too),

financial support in the form of enhanced 401(K) plans, coaching, and even tuition reimbursements for upskilling workers and

additional resources for child and family care.

Companies are also reviewing how their work gets done. Hybrid positions where the employee works remotely some of the time are becoming more familiar in occupations where location isn’t important. The candidate pools are changing, too, as leaders look for talent in the diverse communities that had been overlooked in the past. And everyone is adding technology to perform rote and routine tasks and to augment intellectual inputs made by human workers.

From all perspectives, it appears that the COVID-19 pandemic and its fallout forever changed how the world works. Looking forward, the businesses that will achieve the greatest success will also be the ones that give their employees the attention and consideration they seek.