The Great Resignation: A New Normal?
Why it's happening, what's on deck, and what you can do about it.
Work dynamics are shifting so fast that it has a name. The Great Resignation. I can feel the effects everywhere I go. In the physical world, it is worker shortages in restaurants and retail. In the digital world, its constant notifications of colleagues changing jobs. It’s tangible. So why is it happening?
Shifting Priorities
The last 20 months have forced companies to adapt to a plethora of changes. Whether it be remote work, supply chain issues, keeping their work environment safe, and on and on and on. The need to deliver valuable products hasn’t changed, but the infrastructure has.
In the face of such a tough environment, employee development can be an early casualty. Managers have the same amount of time in the day, yet a host of new challenges brought on by the pandemic. The result is shortcuts to ensure that they preserve the value of the product. In Charlie Warzel’s piece What If People Don’t Want a Career?, he describes this dynamic.
In this instance, the career is a device that businesses and managers can use as a motivation to get the deference and feigned enthusiasm that they want (and often feel they need) from employees. It’s a great tool, in part because career arcs are real. Perceptions and reputations matter and offices have promotional structures that workers want to move up. But the career concept is also frequently abused and lorded over employees. What is billed as mentorship and training (here’s how we do things/here’s how to get ahead) can quickly turn into intimidation and even a vague threat against a person’s future (don’t cross me or it’ll cost you).
Not exactly a dynamic that employees thrive in. In fact, the incentive of promotion isn’t even near the top of the employee’s priority list. In her book, Promotions Are So Yesterday, Julie Winkle Giulioni performed research studying the 8 dimension of a career. Contribution, Competence, Connection, Confidence, Challenge, Contentment, Choice, & Climb. The research reveals that the corporate climb is last among employee priorities. The other dimensions all scored higher.
What stands out to me in this research is that these remaining dimensions are so much harder to engage. In the face of mounting pressure, managers push the button that resonates the least. The "promise" of promotion. Enter, The Great Resignation.
Web3 is changing the game
My expectation is that this disengagement will continue to speed up. The aftereffects of the last 20 months will impact decades to come. Yet, the largest threat to the status quo is only in its infancy.
The internet as we know it (Web2) promised decentralization. To some degree this happened. But it also mirrored the physical world in many ways. Large corporations such as Facebook and Google won our attention. That attention became a commodity and extracted as revenue.
Web3 promises to further decentralize the internet and change the way we work. Decentralized Finance (DeFi) technology is paving the way for individuals to receive fair compensation for their contributions on independent projects. In Julie's research, contribution was the dimension that resonates most with employees. DeFi has the potential to allow people to tap into their career in a new way with greater resonance.
This writeup is not meant to dig deep into Web3. There is still much to sort out and dangerous speculation is rampant in the space as it currently stands. If you’d like to get a broad overview, check out Tim Ferris’ recent podcast with Chris Dixon and Naval Ravinkat. The disclaimer’s about the risks involved near the end of the episode are some of the most important.
One inevitable outcome of Web3 is the shift to a decentralized model for part of the workforce. Corporations will need to be agile in this changing dynamic. The last 20 months has been a dress rehearsal for what is to come.
What’s next for you?
So what does this mean for you? Regardless of your interest in Web3, it most likely will have an impact on your work environment. A few ways you could be affected:
higher levels of employee turnover
more pressure to deliver value as new technologies enter the marketplace
opportunities for promotion as colleagues join Web3
In a changing landscape, opportunity is greatest for those in a strong financial position. The best wealth builders decouple their finances from their job. They see money first as opportunity. If the last 20 months has left you frustrated with your career, then it’s time to take control. Get right with your money, so that you can get right with your career.