Newsletter #96 - The Great Resignation in Asia

Great Resignation crunches tech sector, but boosts freelance industry

Relatively low wages, stressful jobs and poor work-life balance. It’s for some of these reasons that many employees around the world are quitting their jobs in droves to find better prospects, resulting in what economists are calling the “Great Resignation”.

How should businesses and employees respond to the talent crunch, and are there any positive outcomes to be had from this crisis?

Well, it turns out that businesses are turning to freelancers for talent, and many employees are embracing the Great Resignation as a chance to rethink their careers and reinvent themselves.

Always finding new ways to grow,
Team NC

💼 What the Great Resignation means for us

#TRENDS

The Great Resignation goes global [Washington Post]

How is the Western economy faring? - Many resignations worldwide, a phenomenon dubbed as the “Great Resignation,” are taking place as employees want to opt-out of difficult, low-wage jobs. In the US the number of people quitting jobs is picking up speed, where a record 4.3 million workers had quit their jobs in August.

In Western Europe, a stronger safety net has led to somewhat less disruption in the workforce. But similar trends are at play. For example, a survey found that a third of companies in Germany reported a dearth in skilled workers.

Meanwhile in China - Younger workers are disenchanted by their prospects and turned off by the relatively low wages in the manufacturing centres that powered China’s economic rise. A growing shortage of skilled workers in its crucial tech industry poses a challenge for China’s leadership as it tries to steer the national economy toward more skilled sectors. And as global demand picks up after the fallow months of the pandemic, China’s factories are feeling the pinch of labour shortages.

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#TECH

Is tech to blame for the Great Resignation? [Computerworld]

Employee experience matters - Pundits point to many causes for the Great Resignation trend, from government stimulus checks to the rise of remote work and pandemic-driven stress. But some believe it’s also due to the growing incompatibility between the reality and the expectation of the employee experience—from frustrations with tech tools that don’t work well to lack of work-life balance and declining mental health, and limited growth opportunities.

How can tech help? - While businesses are scratching their heads and trying to figure this out, the truth is that our technology products and how they’re used, plus our culture around management and employee interaction, is exactly what’s driving people out the door.

The good news is that better technology is a big part of the solution. And to start retaining and attracting employees, we can begin by using user-friendly collaboration tools to foster connection and culture, avoid employee surveillance, and embrace transparency, authenticity and empathy.

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#BUSINESS

The Great Resignation, an opportunity to serve freelance entrepreneurs [Crunchbase]

A massive talent and economic opportunity - When we think about freelance work, we might conjure up images of laptops in coffee shops and time-consuming self-assessment tax filing. Yet few realise that the solopreneur or professional freelance industry is not much smaller than the enterprise sector–and twice the size of India’s GDP—but it has yet to see its own SAPs or Oracles.

This is rapidly changing, however, as the freelance-tech industry is attracting strong interest from venture capital, who are pouring their cash into a future where freelancing and contracting is the next “new normal.” According to a recent survey by McKinsey, 70% of businesses plan to increase their dependence on on-site freelancers, and 22% plan greater hiring of remote freelancers.

Why should businesses tap into freelancers? - A greater use of freelancers and contractors means businesses can tap into needed skills and experience, keeping overall staff headcount lean, and with it, reduced employee costs around pensions, insurance, taxes and different types of paid leave. That approach to a leaner, dynamic workforce frees up cash to invest elsewhere in a business, and will be seen favorably by current and potential investors.

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