Corn as the “great comeback” looms for employees who have spent months working from home, their attitude toward in-person work, compensation, and changing jobs may underwent a similar metamorphosis.
As more people are looking for a new job when they are already employed, negotiated wages increase, according to the Chicago Fed, which fuels wage inflation and, to some extent, headline inflation.
Will the “great resignation” take on even greater proportions?
It is impossible to say whether Wage pressures and high job mobility will persist through 2022 and beyond the pandemic, Chicago Fed economists said. For now, the jury is still out.
Julia Pollak, chief economist at ZipRecruiter, predicts that many people who must return to the office full-time will leave for jobs with greater flexibility.
“March 1 is the new back-to-office date for many companies. Those that force employees back into the office five days a week are facing a bigger backlash than they anticipated, so much so that the big resignation may accelerate in the coming months,” Pollak told CNN Business in an email.
Ultimately, the market will determine what it takes for companies to win in the war for talent amid a labor shortage, Pollak added.
If going back to the office really dissuades workers from changing jobs, it could also ease some of the inflationary pressures caused by higher wages.
In their efforts to retain talent, some employers offer extra time off, pet sitting, or other creative perks. Many are also considering hybrid work schedules that include days in the office and days worked remotely to appease workers and their newfound flexibility.
–Jeanne Sahadi of CNN Business contributed to this report