In 2021, the second
year of the pandemic also brought about an unusual, if not unexpected,
phenomenon on the labor market – a massive number of resignations. Seen as the
great resignation in the USA, the phenomenon turned global, also affecting
Romania. A recent survey attests to the existence of the phenomenon. Raluca
Dumitra, a communication manager with an online recruiting agency told us more:
Candidates are more willing
to compromise. At the start of the year, we conducted a survey among
job-seekers and it turned out 21% of employees would quit their current job,
even if they don’t have a backup plan. It’s a rather high percentage which I
think should worry employers, all the more so as restrictions were lifted on
March 9. This means employers will want to get people back to work, considering
workers want to remain flexible. A return in block to the workplace would also
possibly prompt employees to resign. Another interesting fact is that right now
candidates are extremely optimistic. Around 75% of Romanians believe they might
find a job within three months. It’s a high rate of optimism considering the
reality on the market. Most industries and sectors are facing a significant
labor shortage, which means highly qualified experts might actually find a job
in less than three months right now.
Petru Păcuraru, the
director of a company that specializes in human resources has confirmed this
phenomenon, also identifying its causes:
One reason would be
that 2020 was a year of uncertainty. People stopped switching jobs, meaning
there were less people who resigned in search of a better workplace, but the
situation changed radically in 2021. 2020 will be the year with the highest job
retention rate in the history of mankind, as mobility was affected. Another
reason is that, businesses have started moving back offline bit by bit. And
then, part of the people who got used to working online will have a hard time
doing their job, and for them this is a criterion when looking for a new job.
And thirdly, I might add, despite economic difficulties, we see people continue
to invest in luxury goods. And one reason is that, in times of crises, people
are thinking about what matters to them most. And those who were about to
compromise, thinking they would keep their job until they find something better
for themselves, found themselves in a bad spot and realized the tradeoff wasn’t
worth it, and they mustered up their courage to look for something better.
At the same time,
people who dare resign without any safety net have a financial and professional
status above average, Petru Păcuraru told us:
If we look at
demographic and income indicators, we will certainly notice people over the age
of 30 or 35 taking this decision, as well as those whose education and income
levels are above average. However, resigning is not always followed by an
immediate reemployment solution. An example are those working in highly
volatile sectors who face high stress levels that can lead to burnout. The
decision to stop working is not determined by finding a new job, but merely by
the will to stay alive.
Although resigning
without a backup plan might seem a decision stimulated by an exaggerated sense
of optimism at first, the latest developments on the labor market do justice to
those who believe a new job, one that is better-suited for them, will sooner or
later appear. Raluca Dumitra told us more:
For instance, last
month we had 38 thousand new jobs listed on our platform, which is tantamount
to the war in Ukraine. If we look at the previous month, we will notice a 13%
increase, considering this is a difficult context we’re talking about, meaning
people continue to switch jobs. Candidates continue to apply and we have some
900 applications every month. Therefore, people continue to resign and are
prompted by jobseekers’ desire to find a better job. In terms of the number of
applications, they are down compared to the same period last year, but that’s
not a surprise, since last year came with record-high numbers of applications.
This time last year, the market did not favor job applicants. Last year,
employers were in a position of power. Another important aspect is that 8 out
of 10 Romanians for whom switching jobs was a priority have already started
looking for a job. And this is also reflected in the high number of job
applications we continue to receive.
Of course, there are
sectors where the demand of workforce is higher, such as retail, transport,
hospitality, call-centers and IT&C. Therefore, the market will continue to
change, Raluca Dumitra argues.
We cannot compare to
the wave of resignations in the US, and I don’t believe Romania will get to
that point, simply because we are talking about a different culture and
mentality. Yet it is worth noting that Romanians are growing increasingly aware
of the context and the fact that there are many jobs available, even in times
of pandemic or war. This makes them feel more confident, even though they don’t
have backup plans. The high number of jobs will definitely favor the wave of
resignations over the coming period. All that must be analyzed in a
geopolitical context, of course, but once a ceasefire is reached, the labor
market will continue its current course and we’ll be seeing more resignations.
(VP)
