What is the ‘great wave of resignation’ where millions of employees leave their jobs, especially in the US and European countries? Why did this not happen in a concrete way in Turkey? While answering these questions, we consulted an expert, and the answers we received revealed a larger problem.
The United States and European countries have been going through a very difficult period in the business world in recent months. Data shared by the US Department of Labor, in the US In November alone, 4.5 million employees left their jobs voluntarily.i.e. it was revealed that he had resigned. While this number is the peak of the last 20 years, it is also 2.9% of the US workforce It showed that he quit his job in a month.
‘Great wave of resignations’ Many researches and surveys have been made about this situation, which is called as Surveys about the wave of resignations, especially in the USA, showed that people here generally left their jobs for similar reasons: Especially after the coronavirus pandemic, many people He wanted to ‘breathe’.
Why is the big wave of resignations happening?
There are many reasons behind the great wave of resignations. But a few of these reasons have been found in all studies. were associated with each other and were seen at high rates. According to the US Secretary of Labor, people were leaving their jobs to look for a new job with better wages and opportunities, to take care of their children, and because of COVID-19 concerns. If it is the main common point that appears in all surveys better wages and opportunities, that is, better working conditions.
Ross Sychell, Human Resources Unit Manager of the human resources services company Personio, said in a statement that employees “What did this company that I work for do for my health and happiness in this process?He stated that they could not find an answer to the question. As a result, employeesI’m going to a place where I’m valuable.“He said he had the thought.
One of the reasons behind the search for better working conditions was actually revealed by some studies: The pandemic had opened people’s eyes. According to a survey by Indeed, 92% of the 1,000 resignations have come with the pandemic.that life is too short to do a job they don’t like‘ she began to feel. In İktisatbank’s Daily Market and Analysis Commentary on January 10, 2022, “Employees’ moods were so badly affected during the pandemic that people realized they needed a breather and a break.” statements were included.
On the other hand, some of the posts made by the resigned people on social media are also shared by these people. how they were able to resign with relative ease was showing. Those who work in countries where the wave of resignation is seen concretely, they managed to save some money with the support of the state and their own means.. In the same comment of İktisatbank, it was stated that the employees could afford to be unemployed for a while with the assurance of this accumulation. In other words, the majority of those who resigned had enough savings to live without being unemployed for a while.
What will be the consequences of the wave of resignations?
While the main reason for millions of resignations in the USA in a month is the search for improvement of working conditions, this is of course. increased the burden on the employer. So much so that companies use their employees to prevent resignation waves. to increase their wages and benefits started. Of course, this meant that the cost of workers increased. This has the potential to create a chain effect: Increase in product and service prices.
Harvard Economics Professor Elizabeth Allison said in a statement that the combination of improving economies and high inflation will increase pressures on employers to increase wages. According to data shared by Oxford Economics, the annual cost of replacing a former employee with a new employee is due to training and hiring bonuses brought/increased by this wave. increased to 122% of the former employee’s annual salary.
Aneta Markowska, chief economist of investment bank Jefferies, said in a statement on this subject that the need for labor will increase in an unprecedented way with the structural decline in labor supply and delayed demand. will tighten labor markets in ways not seen in decades. expressed.
Well, did the wave of resignation take place in Turkey? What was the reason for not experiencing such a wave in Turkey? We consulted an expert for answers to these questions.
Kaspersky’s report ‘Securing the Future of Work’ dated March 22, 2021, 23% of employees in Turkey are considering moving to a new job within the next 12 months was revealing. There were three reasons why employees in Turkey had such an opinion:
- Better salary expectation (50% of employees)
- Better work-life balance (46% of employees)
- Need for a more valuable and meaningful role (29% of employees)
But There was no event so big that it could be called a ‘wave of resignation’ in Turkey. So what was the reason for this? Although employees want a better working environment, why don’t they quit their job and look for a better work environment or risk being away from work for a while? Here are the answers to these questions From Europap Tezol Kağıt to Human Resources Specialist Gamze Değirmenci we consulted.
- Before moving on to the answers, let’s briefly summarize the situation abroad: Employees resign from their jobs asking for a better salary and working environment or just to breathe for a while, and they can live on their savings for a while until they find a new job. Employers who want to prevent this wave are also making improvements in the working conditions of their employees.
When we asked why the employees in Turkey did not follow a similar path, we actually got an answer based on desperation:
“A lot of businesses are closing right now during the pandemic, and we even expect many layoffs with the new minimum wage. People do not want to leave their place in this uncertainty and anxiety about the future. For example, I am demanding higher right now or I am demanding a better working environment, as soon as I leave here, there is a lot of work force that he can find for me, with much less pay.”
Stating that there is always a different employee alternative because the unemployment rate is very high, Değirmenci emphasized that a new employee can be replaced with a lower wage. In fact, some companies directly use this alternative. laying off an old employee and hiring a new employee at a lower wage He also stated that he applied through
Does an employee with savings prefer to leave his job and be unemployed for a while in search of a new job? The answer to the question was as follows:
“The person who has the investment wants the investment to stay on the shore. People are in limbo right now and don’t want to do anything with that stranded money.”
To what extent can employers resort to increasing the conditions of their employees? Unfortunately, the answer to this question is not very positive, because TL is losing value:
“The depreciation of TL also affects businesses a lot. We operate in the toilet paper industry, we are one of the least affected companies, even with the pandemic, sales have increased. However, the cost has increased too much. As the cost increases, employers also They cannot provide a better working environment.”
Qualified workforce in Turkey is also adversely affected by all these situations:
The depreciation of the TL and the increase in inflation negatively affect the qualified workforce in Turkey. Qualified employees seeking better working conditions and wages tend to companies abroad or companies of foreign origin in Turkey. In fact, the ‘work migration’ situation that we have been living through for a very long time, By reducing the number of qualified employees in Turkey, it pushes the capabilities of companies further back. Since the employers in Turkey cannot improve their working conditions due to the increase in costs, and even prefer lower paid and unqualified employees, we do not have a clear path ahead.
On the other hand, the depreciation of TL is also true for companies originating abroad. It offers great advantages in Turkey. The low value of TL against foreign currency means that the cost of foreign companies in Turkey will be less. Although this will encourage foreign companies to invest in Turkey and may make the working environment in these companies more desirable, there is an obstacle to this, according to Değirmenci:
“If foreign origin companies improve their conditions there, they can go to the point of improving their conditions here as well. The improvement he makes here will have almost no impact on him in terms of cost. If you look at the dollar and euro rate right now We are at a level to receive a lot of foreign investment. You are a foreign investor, your labor cost is very low here. But the foreign investor is also currently due to lack of trust from the government cannot invest here. There are also many foreign companies that have withdrawn from Turkey.”
As a result..
employees in Turkey, Since they do not have savings, they cannot even make savings. They can’t afford to lose their jobs. employers, unable to improve conditions due to rising costs. Qualified employees, who find a better working environment, flee abroad or to companies of foreign origin. In other words, the wave of resignation cannot be experienced due to the conditions in Turkey, on the contrary, the loss of qualified workforce that has been going on for a long time is increasing.
The statements made by Gamze Değirmenci for Turkey and the results of the resignation wave abroad point to another negative picture for Turkey: The rising costs of products and services, and the resulting increased prices, will drive prices higher in our importing country and all over the world. . The depreciation of TL will also be ‘foam’ on top of this price increase.