The rise of naked resignation: A bold new exit strategy among gen Z and millennials

Jumping without a net. The feeling of breaking ties and ending the routine that suffocates, to seek new projects and undertakings. It sounds great and that seems to be the logic that pushes many employees to quit their jobs, with nothing clear on the horizon regarding their immediate professional future. And although it may sound very poetic, ‘naked resignation’ has its risks, which must be considered when taking the plunge.

The new phenomenon is taking hold among young professionals worldwide, but specially in the huge chinese labour market. The trend of lleaving their jobs without securing a new position first, known as "naked resignation," reflects a growing desire among the youth to break free from the relentless grind of corporate life, even at the risk of financial instability and prolonged unemployment.

While this decision offers immediate relief from job-related stress, it poses significant risks, such as financial instability, difficulty re-entering the job market, and potential red flags for future employers due to gaps in employment history. Despite these risks, the trend is gaining traction as more young professionals seek to prioritize their well-being over their careers.

The term "naked resignation" gained popularity on Chinese social media platforms like Weibo and Xiaohongshu, where users share their experiences and plans post-resignation. It is inspired by the feeling of monotony and overwork prevalent among China’s workforce, encapsulated by the phrase 'Liǎng diǎn yīxiàn' which describes the endless commute between home and work. The term has also been associated with the trend of "loud quitting," where individuals publicly announce their resignations on social media to explore new passions and travel.

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Impact on Lives and Careers

The allure of naked resignation lies in the promise of a break from the relentless corporate grind. Young professionals are using this time to pursue personal interests, learn new skills, and travel. For instance, a viral post on Weibo by a 28-year-old who resigned after receiving a raise highlighted their plans to learn English, get fit, improve cooking skills, and travel. This reflects a broader sentiment among the youth: life is short, and there is no better time to explore and grow than now.

However, the decision to resign without a backup plan is not without its challenges. Financial instability is a primary concern, as is the potential difficulty in finding new employment. Yet, for many, the benefits outweigh the risks. The trend is particularly popular among those in the tech industry, notorious for its "996" work culture—working from 9 a.m. to 9 p.m., six days a week. The demanding nature of such jobs has left many feeling like mere cogs in the corporate machine, leading to disillusionment and burnout.

Changing Attitudes Towards Work and Life

Naked resignation is part of a broader shift in attitudes toward work and life among younger generations. Social media trends like "lying flat," which emphasize freedom, happiness, and health over career achievements, reflect this change. While older generations often view gap years and time off work with suspicion, younger people are increasingly prioritizing self-awareness and self-care.

The economic downturn and the pandemic have further fueled this trend, leading many young professionals to rethink their careers and seek new meaning in their lives. Despite the risks, the desire for a more fulfilling life outside the corporate rat race is compelling an increasing number of young people to embrace naked resignation.

However, it doesn´t look like the best and more secure option. Job hunting while employed provides financial stability, a stronger negotiating position, and a continuous work history, while boosting confidence and access to professional networks. This strategic approach can lead to better job opportunities and career advancement, making it the preferred method for many professionals.

Looking for a job while employed is often considered advantageous for several reasons:

1. Financial Stability

• Steady Income: Having a job ensures a steady income stream, allowing you to cover living expenses and avoid financial stress during your job search.

• Reduced Pressure: Financial stability reduces the urgency to accept the first offer you receive, giving you the flexibility to wait for the right opportunity.

2. Stronger Negotiating Position

• Perceived Value: Employers often perceive currently employed candidates as more desirable and valuable. They may assume that if you are employed, you are likely performing well in your current role.

• Leverage: Being employed gives you more leverage in salary and benefit negotiations. You can negotiate from a position of strength, knowing you have a fallback option if the offer isn’t satisfactory.

3. Confidence and Self-Worth

• Self-Esteem: Being employed can boost your confidence and self-esteem, which can positively impact how you present yourself in interviews.

• Demonstrated Capability: Continuing to work demonstrates your ongoing capability and relevance in your field, reinforcing your qualifications and skills to potential employers.

4. Avoiding Employment Gaps

• No Employment Gaps: Employment gaps on a resume can be a red flag to some employers. Being employed while job hunting helps maintain a continuous work history.

• Less Scrutiny: Without gaps to explain, you face fewer questions about your employment history, making the hiring process smoother.

5. Access to Resources and Networks

• Professional Network: While employed, you have better access to professional networks and industry contacts, which can be valuable for discovering job opportunities and getting referrals.

• Current References: You can more easily obtain up-to-date references and recommendations from colleagues and supervisors.

6. Increased Opportunities

• Employer Bias: There is a bias among some employers that the best candidates are currently employed. Being employed can help you overcome this bias.

• Passive Job Seeking: While employed, you can be a passive job seeker, open to opportunities but not in a rush, which can sometimes attract recruiters looking for top talent.

7. Reduced Desperation

• Better Decision-Making: Without the pressure of needing immediate employment, you can make more thoughtful decisions about job offers and career moves.

• Selective Job Search: You can be more selective about the roles you apply for, ensuring they align with your career goals and values.
  
  Read also: Article: Millenials and Gen Z can engage but demand change (peoplemattersglobal.com)

Risks Involved and Considerations to Bear in Mind

Foremost among the risks of “naked resignation” is financial instability. Without a steady income, individuals may struggle to cover their living expenses, leading to potential financial hardship. Additionally, prolonged unemployment can make re-entering the job market more challenging, as extended gaps in employment history often raise red flags for future employers.

To mitigate these risks, it is advisable to take several proactive steps before resigning. First, financial planning is crucial. Building a savings cushion can provide a safety net during the period of unemployment. Second, strategic networking can help open doors to new job opportunities. Engaging with industry contacts and attending professional events can keep you connected and informed about potential openings.

Making an informed decision about naked resignation involves weighing the immediate benefits against the long-term consequences. By planning financially, networking strategically, and considering alternative options, individuals can face the risks associated with quitting without a job lined up and ensure a more stable transition into the next phase of their career.