The Great Resignation and DEI: Essential Updates for Employers

Employers across every industry are feeling the pain of the Great Resignation. Americans have quit their jobs at a record pace in the last couple of years, leaving very tight labor markets everywhere. Per a Pew study, the US had its highest “quit rate” in 20 years in November 2021. The New York Times recently noted that even in blue-collar industries, workers have left their jobs and are becoming more selective than ever about their next roles. (Typically, being so selective about roles is a luxury limited to those of a higher socioeconomic status.) In today’s job market, workers at all levels are demanding better options, including, but not limited to, their work environments, compensation, opportunities for remote work, and a general sense of belonging, among others. One of the most significant contributing factors to these high resignation rates is a lack of diversity, equity, and inclusion (DEI) in workplaces. Here are critical considerations employers need to understand about the connection between DEI and The Great Resignation.

1. A Deloitte study found that nearly 40% of workers say they would leave their position for a more inclusive employer, and 80% mentioned inclusivity as an important factor in selecting a workplace. A report from academic publishing company Wiley shows that 50% of workers between ages 18 and 28 left their jobs due to a company culture that made them feel “unwelcome or uncomfortable.” A high percentage of these respondents were women, Asian, Black, and/or Hispanic. Employers should also note that 68% of respondents said they have been uncomfortable in a tech role specifically due to “their gender/ethnicity/socio-economic background and neurodevelopmental condition.” In a general sense, talent leaders often see their highest employee attrition in new hires from the communities that are underrepresented (including non-heteronormative sexual orientation or gender expression, people of color, people of different national origin, people with veteran status, etc.). Typically, this is related to a lack of support from the organization and its management.

2. People in marginalized groups don’t feel like they belong – and can’t see themselves staying and moving up. Employers are losing their staff because they don’t have enough representation of diversity, especially at the top. Employees from underrepresented backgrounds are leaving in record numbers because they can’t see themselves in peer groups or leadership positions. When employees can’t see people like themselves in management or leadership roles, it’s hard to picture themselves in those positions. This makes it harder to visualize growing within the company and staying for a long time. Though it isn’t likely to be the only reason employees leave, this effect contributes to their decision to move on. As with higher-up roles, employees also feel more comfortable when their peers reflect some diversity. A more diverse pool of coworkers helps everyone to feel more comfortable and accepted, whether their own minorities are represented or not. It’s important to note that as more minority employees leave an organization, chances dwindle for them to attract new and diverse talent. Candidates see that an employer doesn’t have much diversity, then rejects them for other employers that do. Unfortunately, the less an employer embraces diversity, equity, and inclusion, the less these initiatives work. As a result, employers lose more talent– current and prospective.

3. Working remotely has helped many employees from underrepresented groups reevaluate how they’re treated at their current employer. With less time face-to-face with customers, clients, coworkers, and managers, employees are likely to have experienced less judgment or microaggressions due to their minority status. If they’re being asked to return to the office, employees from minority groups are more likely to want to find a new job—one where they can continue to experience less prejudice. Even employees who aren’t being called back to the office are taking advantage of the tight labor market to find an employer that values them fully, allowing them to bring their whole selves to work. During The Great Resignation, employers that have already been implementing DEI initiatives will have a stronger advantage in retaining and attracting talent.

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