The Great Resignation 2.0 - Why People Are Leaving Jobs Again?
The Resignation Trend Returns
The original Great Resignation began during the COVID-19 pandemic in 2020, and now in 2025, it has returned with new drivers. Experts forecast that 46% of employees plan to quit in the next year, signaling a rising trend that companies cannot ignore. While this may seem alarming, it offers organizations an opportunity to rethink outdated retention strategies before recruitment and rehiring costs consume a significant portion of their budgets.
Today, resignations are no longer driven solely by pay or remote work options. Employees are increasingly seeking purpose, growth, wellness, and psychological safety in their roles. Retaining top talent now requires understanding not just compensation, but also the alignment of work with individual values and meaning.
In this article, we’ll explore the depth of this new wave of resignations, examining why employees are leaving, the impact on organizations, and what leaders can do to retain their most valuable people. By the end, you’ll gain practical insights into how career coaching, retention strategies, and leadership development can help your organization thrive even amidst ongoing workforce shifts.
What’s Different in 2025 — New Drivers of Resignation
Although 2020 wasn’t long ago, employee expectations have shifted dramatically. Increasingly, Gen Z and Millennial employees are leaving roles that offer competitive salaries and remote work, leaving managers puzzled. This trend stems from a deeper evaluation of the meaning and value of their work, rather than traditional incentives alone.
The key drivers of the 2025 resignation wave include:
Lack of purpose or misalignment with company values – Employees want to see the impact of their work beyond KPIs.
Burnout and mental fatigue – High workloads, constant communication, and multitasking drain focus and energy.
Poor leadership or gaps in psychological safety – Employees need leaders who listen, empower, and provide safe spaces to share ideas.
Insufficient growth or career development opportunities – Without learning paths, mentoring, and skill advancement, employees feel stuck.
Practical examples illustrate the impact:
Companies that offer no growth in responsibility or role progression within a few years risk losing employees.
Expectations of overtime and 24/7 availability often lead to burnout.
Leadership styles based on punishment or fear increase turnover.
Employees who don’t understand the value or impact of their work disengage and leave.
These trends highlight a shift toward purpose-driven work, where engagement and alignment outweigh salary or perks. Leaders must recognize these motivators to prevent losing their most talented employees.
The Human Cost and Organizational Consequences
High turnover has tangible and intangible costs for organizations. Beyond the obvious financial impact of recruitment, onboarding, and training, turnover disrupts team dynamics and erodes institutional knowledge. Leaders often find themselves trapped in reactive mode, trying to fill gaps instead of focusing on strategic initiatives.
Employees also face a human toll. Stress, disengagement, and mental fatigue increase when people feel undervalued or stuck. Productivity declines, creativity wanes, and innovation slows. Teams lose cohesion, and the risk of mistakes rises.
Consider this scenario: A team leader notices several high performers leaving within months. Despite full calendars, productivity is low, and team morale is dipping. The organization’s long-term projects start to stall, and remaining employees feel anxious about their workload and career future.
Recent data highlights the urgency: approximately 35–36% of employees are actively considering leaving their roles, and 63% of voluntary turnover stems from poor leadership or toxic workplace culture.
To mitigate these costs, organizations need proactive strategies focused on engagement, purpose, and leadership development. Leaders who understand the emotional and practical consequences of turnover can design interventions that retain talent and improve overall organizational health.
How Leaders Can Respond — Coaching & Development
Leaders have a central role in reversing resignation trends. Implementing leadership development and coaching programs can significantly reduce turnover and improve engagement.
Career coaching supports employees in identifying clear growth paths, aligning daily work with long-term goals, and building confidence in their abilities. Retention coaching focuses on engagement, purpose, and alignment with organizational values, while psychological safety initiatives create environments where people feel safe sharing ideas, taking risks, and asking for help.
Practical strategies leaders can implement include:
Mentorship programs: Pairing junior staff with experienced mentors for guidance and support.
Regular check-ins: Scheduled conversations to review career development and workload balance.
Transparent career ladders: Clear paths for progression, skill growth, and internal mobility.
Recognition of purpose and impact: Ensuring employees understand how their work contributes to the organization’s mission.
Coaching also supports leaders themselves, helping them reflect on their management style, enhance empathy, and create alignment between organizational objectives and employee expectations. By combining individual coaching with team-focused development, organizations can foster a resilient, engaged, and purpose-driven workforce.
Lessons from Data — What the Research Shows
Multiple studies highlight why the Great Resignation 2.0 is happening:
LinkedIn 2025 Workforce Report: 46% of employees plan to quit in the next year, with Gen Z and Millennials leading the trend.
Universum 2025 Global Talent Survey: Top reasons for leaving include lack of purpose, career growth, and psychological safety, ranking higher than salary.
iHire & PwC Studies: Over 60% of knowledge workers spend more time on communication than meaningful work, contributing to burnout.
Cengage Career Development Insights 2025: Employees who perceive a misalignment between personal values and company culture are twice as likely to leave within a year.
Key insights for leaders:
Employees value purpose and alignment more than monetary incentives.
Career growth and mentorship reduce voluntary turnover significantly.
Psychological safety and trust are crucial for retention.
Integrating these insights into leadership strategies allows organizations to proactively address retention risks. Career coaching, structured growth plans, and purpose-driven leadership are now more important than ever for retaining top talent.
Conclusion + Call to Action
The Great Resignation 2.0 reminds us that people, not perks, drive retention. Resignation patterns have shifted: employees seek meaning, growth, wellness, and safety. Leaders who ignore these drivers risk losing top talent, incurring high recruitment costs, and diminishing organizational performance.
Reflect on your organization: Are you meeting your employees’ needs for purpose, development, and psychological safety? Small, strategic changes today can prevent turnover tomorrow.
