For an organization to remain sustainable, it must offer its members four key values: material offerings, growth and development opportunities, connection and community, and meaning and purpose. However, during times of economic slowdown and increasing uncertainty volatility, there is a tendency to reinforce an instinctive bias that focuses on individual and short-term elements. This results in the failure of a 'systemic approach' that integrates various value propositions. Organizations might make easy choices such as eliminating education programs necessary for employee growth and development, or resort to premature layoffs, ultimately incurring higher costs for future recruitment and onboarding. Since the four value elements are interdependent, sacrificing any one of them comes with consequences. Therefore, it is essential to design an attractive value proposition by listening to the needs of employees. This approach is crucial for building a long-term successful organization, even during challenging times when the Great Resignation and Great Layoffs intersect.
Interview: Harvard Business School professor Amy Edmondson
Just a few months ago, "The Great Resignation" was a buzzword in the U.S. and other labor markets around the world. In the wake of the COVID-19 pandemic, a growing number of workers who valued flexibility over job security and were dissatisfied with their traditional work environments were leaving their companies in search of better options. The 'Quite Quitting' craze, where employees leave their jobs psychologically, even if they don't physically leave, and do the minimum amount of work, also spread like wildfire among the Millennials and Generation Z.
However, the atmosphere has completely changed in the past six months. Due to the impact of the U.S. Federal Reserve raising interest rates, concerns about an economic recession have grown, and a wave of layoffs has begun, especially among big tech companies. It has been openly said that we have passed The Great Resignation and entered The Great Layoff. Workers who voluntarily took early retirements and job-hopping opportunities have been replaced by those who fear involuntary termination at the drop of a hat.
This content was translated into English by AI (using DeepL) from an article that was originally written in Korean in the DBR (Donga Business Review). Therefore, please understand that there may be some awkward expressions.
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