India is one of the world’s youngest countries, with the world’s second-largest workforce. The two major driving forces behind the economic growth and social development of any country are skills and knowledge. Globalization, information, and competition have increased the demand for a highly qualified workforce in both developing and developed countries to propel the economy’s development rate upward.
Today, all economies require skilled labor in order to fulfill global quality standards, promote overseas trade, bring sophisticated technologies to local businesses, and accelerate industrial and economic development. Surprisingly, India has the smallest demand-supply gap for Tech talent. According to NASSCOM president Debjani Ghosh, India has the world’s smallest demand-supply gap at 21.2 percent. A shortage of Tech expertise is not unheard of, and India is not the only country experiencing a shortage in this field.
Without a doubt, the Covid-19 pandemic was a watershed moment that profoundly affected both people’s lives and the economy. While the pandemic caused a volcanic eruption in most sectors, the tech industry benefited from the crisis. This storm bought a volcanic shift towards the tech sector for most companies. Consequently, the magnified demand for technology has resulted in greater demand for tech resources. Unfortunately, talent acquisition leaders are seeing a decrease in overall applicant volume as well as an increase in candidates failing to show up for their interview or the first day of work. There lies no single reason for this candidate conundrum.
A myriad of factors such as backlashes from the coronavirus pandemic and availability of the required assistance from the government can be a few reasons for this mismatch in demand-supply in Tech talent. To begin discussing the present demand-supply issue, statistics on active job posts and active job seekers would provide a complete picture of the situation. Unsurprisingly, job postings in numerous industries were down in April 2020. When the economy is in a slump, the number of active job seekers tends to rise. However, many Tech businesses saw a staggering 28.6 percent drop in active job seekers. It is historical to experience a decline in job postings and shooting unemployment. However, it is pretty bizarre to witness such a sturdy decrease in active job seekers.
What is a Great Resignation?
Every year, the tech industry benefits from an influx of new talent. However, more than 4 million workers in the United States alone abandoned their jobs in 2021, a record figure, and this vast migration isn’t limited to the United States. According to Microsoft’s research’s one poll, 41 percent (or 11 out of 15) of global workers were considering leaving in 2021 – a trend that could very well continue in 2022.
Another study found that 39 of the 50 countries surveyed had greater rates of employee resignation. The Great Resignation has wreaked havoc on the Tech industry, and tech organizations are panicking as a result of strong demand and a scarcity of active job hunters. Covid-19 and the new normal, “work from home,” are the major contributors to making pre-pandemic hiring perks and benefits obsolete.
So, what is the cause of this Great Resignation?
Millions of Indians, particularly women, are entirely exiting the labor force because of the frustration of not getting the right kind of job. According to research, people are more likely to quit their employment after experiencing “turnover shock”: a life event that prompts self-reflection regarding one’s job happiness. Shocks can be pleasant, such as admittance to graduate school or the birth of a new child, or bad, such as a divorce or an ill relative.
They can also be worldwide disasters, such as COVID-19, disrupting every facet of daily life. It could also be due to inadequate pay or poor working relationships with coworkers and/or management. Also, don’t forget about work unhappiness! According to research published by LinkedIn, 79 percent of millennials are dissatisfied with their careers.
Employees are looking for better opportunities
Employee in huge numbers is quitting their current jobs in the hunt for cut-above job opportunities. Better job opportunities are not only synonymous with a better salary but also with new challenges. A survey conducted by Amazon India in September 2021 suggested that more than 50 percent of job seekers are on the hunt for opportunities in sectors of industries that welcome candidates with little or no experience.
Due to exhaustion and stagnancy, most job seekers are probing for new challenges. Thanks to the new normal, work from home follows a similar working pattern on a daily basis and has a significant hand in the great resignation in the Tech sector. Another factor fueling resignations is people’s desire to move to more stable work.
Burnout: The driving force behind Great Resignation
In 2019, the World Health Organization (WHO) acknowledged burnout as an occupational problem. Burnout is defined by Mental Health UK as “the state of physical and emotional tiredness experienced by a person in long-term stress in a job or when a person is a part of a physically or emotionally exhausting work environment for an extended period of time.”
Feeling exhausted, useless, detached/alone, having a gloomy attitude, and having self-doubts are all common indicators of burnout. If a company does not provide adequate treatment to employees suffering from chronic burnout, the upshot might be resignation, with departing individuals even urging others to do the same. The pandemic days gave a more precise picture of the employees suffering from burnout.
Can the great resignation be stopped?
The growing number of resignations around the world could pose a serious worry for the global economy and large enterprises. As a result, most companies have begun to pay greater and better benefits to new hires. Employees are looking for more flexibility to work from home, in addition to larger pay packages.
For certain employees, this element may be more important than better pay. As a result, in order to acquire and retain employees, many organizations are modifying their workweek norms to be more flexible and shorter. Above all, most businesses must create a healthy work culture, including making the workplace a more enjoyable place to work by incorporating entertaining events, trips, and happy hours. According to the study, these have a favorable impact on employees’ mindsets and boost coworker connections. Companies should also make a point of recognizing employee efforts and allowing them to progress in an equitable manner within the organization.
Summary:
A supply-demand mismatch could entail a sense of panic in the Tech hiring environment. This mismatch in the Tech talent supply-demand scenario and organizations worldwide are working hard to bridge the gap.
