The Great Resignation – Predictions, Reality, and Ongoing Challenges

(This article was first published in the Critical Path, the monthly newsletter of PMI Sydney Chapter publish in August 2024)

Burnout The Great Resignation, a term coined in 2021 by Anthony Klotz, predicted a mass exodus of employees from their jobs, driven by pandemic-induced burnout, a re-evaluation of career goals, and a desire for better work-life balance. Experts anticipated this trend would last for several years, significantly impacting employers and shifting power dynamics in favour of employees. Businesses were expected to face challenges in retaining and attracting talent, leading to increased automation and a greater emphasis on employee well-being and flexible working conditions.

Fast forward to mid-2023, and the Great Resignation has largely subsided, with resignation rates returning to pre-pandemic levels. However, the underlying issues that fuelled this phenomenon persist, and employee dissatisfaction remains a significant problem. Despite the normalisation of resignation rates, many workers continue to grapple with stress, inadequate compensation, poor workplace culture, and limited career growth opportunities. This ongoing dissatisfaction has great implications for various professions, particularly project management.

The Impact on Project Managers and Projects

Project managers have felt the brunt of the Great Resignation and the continuing wave of employee dissatisfaction. The challenges they face are multifaceted and deeply intertwined with the broader issues affecting the workforce.

  1. Increased Workload and Stress: Talent shortages and high turnover rates have made it difficult for project managers to assemble and maintain effective teams. This often results in increased workloads and stress as they strive to fill gaps and keep projects on track.
  2. Shift in Management Practices: The demand for flexible working arrangements has led project managers to adopt more adaptable project management practices. This includes accommodating remote work and adjusting project timelines to better suit team members’ needs.
  3. Focus on Employee Well-being: Recognising the importance of mental health and well-being, project managers are prioritising the creation of supportive environments and promoting work-life balance. This shift is essential for maintaining team morale and productivity.
  4. Enhanced Communication Skills: Effective communication has become even more critical in managing remote and hybrid teams. Project managers must ensure clear, transparent, and frequent communication to keep their teams aligned and motivated.
  5. Leadership Development: There is a growing emphasis on developing leadership skills among project managers. Training in empathy, conflict resolution, and team-building is crucial for supporting and retaining project managers and team members.

The Persistent Challenge of Employee Dissatisfaction

Despite advancements in project management techniques and frameworks, employee dissatisfaction remains a significant hurdle. Technical skills alone are insufficient to guarantee project success. The human element—how team members feel about their work, their environment, and their leaders—plays a crucial role in determining project outcomes.

Employee dissatisfaction can lead to disengagement, reduced productivity, and higher turnover rates, all of which can derail projects. Project managers must navigate these challenges by fostering a positive and supportive work environment, even if the broader organisational practices are lacking.

Practical Tips for Project Managers

To improve team satisfaction and enhance project outcomes, project managers can implement the following strategies:

  1. Prioritise Mental Health: Provide access to mental health resources and create a supportive environment where team members feel comfortable discussing their challenges. Encourage regular breaks and promote a healthy work-life balance.
  2. Offer Flexibility: Accommodate flexible working arrangements, such as remote work and flexible hours. This can help team members manage their personal and professional responsibilities more effectively.
  3. Recognise and Reward: Regularly acknowledge and reward team members’ efforts and achievements. This can boost morale and job satisfaction. Recognition can be in the form of verbal praise, bonuses, or other incentives.
  4. Foster Open Communication: Maintain clear and transparent communication channels. Encourage team members to voice their concerns and provide regular feedback. This helps build trust and ensures everyone is on the same page.
  5. Invest in Professional Development: Provide opportunities for training and career advancement. This shows a commitment to team members’ growth and can increase their engagement and satisfaction.
  6. Create a Positive Work Environment: Promote a culture of respect, inclusion, and collaboration. Address conflicts promptly and fairly; and ensure that all team members feel valued and supported.

By focusing on these areas, project managers can create a more engaged, motivated, and satisfied workforce, ultimately leading to better project outcomes. While the broader organisational practices may take time to evolve, these practical steps can make a significant difference in the day-to-day experiences of team members.

The Great Resignation may have subsided, but the challenges it highlighted remain. Project managers must navigate these ongoing issues with empathy, flexibility, and a focus on well-being to ensure their teams thrive and projects succeed.

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