Is Your Business Ready for The Return of The Great Resignation in 2025?

By |Last Updated: February 3, 2025|4.1 min read|

This year businesses are facing a familiar challenge: The Great Resignation 2.0. This workplace trend first made headlines in 2021, when we saw millions of employees voluntarily leaving their jobs in search of better opportunities, work-life balance, and job satisfaction. Now, recent studies indicate an even larger wave of resignations on the horizon. Companies must ask themselves: Are they ready for a second wave of mass employee churn and what can they do to retain their experienced and valued talent?

What Was The Great Resignation​?

“The Great Resignation” was coined in 2021. It described a massive shift in the workforce where millions of employees left their roles for other positions. I’ve been in the talent acquisition space for a long time, and I’d never seen anything like it.

Although it followed the COVID-19 pandemic, this talent trend was driven by several factors, including:

  • The search for better work-life balance

  • Higher pay

  • Competitive benefits

  • More fulfilling careers

According to the U.S. Bureau of Labor Statistics, approximately 47 million Americans quit their jobs in 2021. It led to a lot of challenges for businesses across various industries. Companies had to develop enhanced benefits offerings quickly to attract talent in a competitive market and hold onto the employees they had.

Introducing The Great Resignation 2.0

Now, in 2025, we’re on the brink of what many are calling The Great Resignation 2.0. A study by LinkedIn and Microsoft indicated that this time around we can expect even bigger employee turnover. The survey of 31,000 individuals across 31 countries revealed that 46% of employees plan to leave their jobs in the year ahead. This is even more than 2021’s levels, when 40% stated they wanted to leave their jobs.

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What Is Causing The Great Resignation in 2025?

Many of the causes behind The Great Resignation 2.0 can be traced back to companies reconsidering and, in some cases, retracting the generous benefits introduced during the initial wave in 2021.

Some notable examples include:

  • Hybrid, Remote and Flexible Working: The tech sector is leading the charge here, with big names like Amazon mandating employees return to the office for five days a week and removing flexible work policies completely. This decision has left many employees feeling disillusioned, particularly those who appreciated the freedom and work-life balance that remote work provided.

  • Salary Increases: According to Resume Templates, 27% of companies have reduced current employees’ salaries, and 1 in 10 companies aren’t giving raises to any employees this year. This rollback in compensation growth comes as a blow to workers who face rising living costs and inflation.

  • Matching 401(k)s: As part of a general reduction in benefits offerings, 19% of companies will also stop 401(k) matching. This move not only impacts employees’ financial planning for retirement but also sends a negative message about the company’s commitment to its workforce’s long-term wellbeing.

  • Generous Parental Leave: In 2024, the Wall Street Journal suggested that the streaming giant, Netflix, was unofficially reducing its “unlimited” parental leave when it removed information from the workplace culture section on their website.

How to Prepare for The Great Resignation 2.0

As a business leader with over 20 years of experience in business development and talent acquisition, I can confidently say that companies need to remain proactive and adaptable in the face of The Great Resignation 2.0.

Here are practical steps your business can take to prepare for The Great Resignation 2.0 and retain your top talent:

  • Reinforce Flexible Work Policies: Employees have come to value the flexibility that remote and hybrid work arrangements offer. Many even state that they’re more productive when they work in their home environments. Evaluate which roles truly require an in-office presence and offer flexible options where possible.

  • Offer Competitive Compensation: With inflation and cost of living on the rise, it’s essential to offer competitive salaries. Conduct market research to ensure your compensation packages align with industry standards. If you’re unsure of how to approach this research, talent acquisition partners have a lot of resources and insight to help you.

  • Enhance Benefits Packages: Reevaluate your benefits offerings and consider restoring or introducing new perks that support employees’ wellbeing and financial security.

  • Invest in Professional Development: Career growth opportunities have been a major factor in employee retention for years. Offer training, mentorship programs, and clear pathways for advancement. Empower your employees to develop their skills and achieve their career goals within your company. This is such a critical area to reassuring your employees that you’re invested in their long-term position within your company.

The Great Resignation: Preparation Tips

However, my advice will always be to talk to the experts. Working with an organization that specializes in Recruitment Process Outsourcing means you get access to the skills and insight needed to mitigate employee turnover with talent acquisition and retention strategies designed to suit your specific business.

At Pierpoint International, we specialize in providing tailored talent solutions to help businesses navigate these challenging times. Book a call today to discuss your needs.

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Tracey Langford

Tracey Langford brings over 20 years of expertise in talent acquisition, with a focus on building long-term relationships and delivering strategic workforce solutions. Based in Georgia and a UCLA graduate, she creates tailored recruitment solutions that align with organizational goals.

As the Director of Global Talent Solutions at Pierpoint International, Tracey specializes in full and partial RPO, recruiting on demand, and executive search, drawing on her experience in consultative problem-solving, solutions architecture, and sales enablement. Her leadership in shaping innovative talent strategies has made her a trusted voice in the field.

Outside of work, Tracey enjoys tennis, pickleball, and spending time with her family, including her husband, two daughters, and their dog, Sandy Girl.

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2025-02-03T13:53:31-05:00
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