Wave of year-end resignations

“People in the early stages of their careers are more likely to take risks and leave, especially in a context of rising living costs,” said Alex Beene, a finance lecturer at the University of Tennessee.

Amy Stewart, director of salary research and analysis firm Payscale, says workers are leaving primarily in the health care and education sectors. “They feel overworked, understaffed and underpaid,” Stewart says.

Experts explain that the wave of year-end resignations is due to Gen Z breaking the culture of loyalty to the company while previous generations always valued stability.

“The new currency is loyalty at work,” says Michael Ryan, financial expert and founder ofmichaelryanmoney.com, said. At the same time, young people have seen their parents work hard for decades and still have difficulty retiring. They have formed the mindset that work is a transactional relationship, which needs to be mutually beneficial.

The survey also found that 46% of American workers feel they are being paid fairly in 2024. Meanwhile, Gen Z is the most frustrated generation with 43% saying they are underpaid.

HR expert Driscoll predicts a wave of layoffs will hit as early as 2025. However, workers could face a hiring “loop.”

Specifically, high employee turnover means spending a lot of money on recruiting, training, and integrating employees into the workplace. Companies that want to avoid losing money due to mass absenteeism need to take action. They need to pay fair wages, provide meaningful growth opportunities, and treat their workforce with real benefits.

“Companies that don’t reinvest in their employees will pay the highest price,” he said.