What’s Causing this Exodus?
Lockdown was (or still is depending on where you are in Australia) many things for people. It was a time of great struggle with 1 in 5 Australians reporting high levels of psychological distress and more fortunate people were able to get through lockdown fairly unscathed, perhaps picking up a few new hobbies along the way.
But for many, lockdown was a period of reflection and a time to evaluate career choices and consider a different path. This has resulted in many people deciding to change things up and make the move – once out of lockdown of course.
Why are People Leaving?
Looking at the data surrounding the Great Resignation in the US, the stats are fairly clear on the reasons employees are moving on and what they are looking for from their new employer.
38% would leave their job due to a lack of growth and 26% are leaving due to a lack of training and development opportunities. 56% want employers to offer more career development opportunities in 2022.
An it’s not just the currently employed. 90% of new talent also said when searching for a new job that it’s very important a company offers a strong training and upskilling program. This was even higher for tech-specific workers, where 97% of these employees echoed this notion.
Remote work is still in demand, it is not in the top three demands for workers in 2022. 35% of respondents said they want remote work options from their existing employers (tech workers were lower with 20%). This trailed other areas like health and wellness (61%), training and development (56%) and CSR efforts like diversity and sustainability. This could potentially be partly contributed to the fact that remote work still has its fair of challenges. 38% (and 60% of tech respondents) claimed they need better support from their employer with remote solutions, including reliable connectivity. 33% worry they’ll have fewer opportunities for training and reskilling, or that they’ll disappear completely with the rise remote work. Check out this report by amdocs for further info.
When is it Hitting Australia?
Our research has shown that Australia will most likely see similar month-on-month exoduses to the US. Predictions state that with lockdowns ending and vaccine targets being reached, Australia will likely be really feeling the effects at the beginning of 2022 and continue throughout the year.
However, many would argue that the phenomenon has already begun with 1 in 4 (25%) Australians job hunting according to a Gartner survey of more than 1,500 Australians. Hays’ 2021 salary guide puts this number even higher, with nearly 40% of Australians seeking a different job this financial year.
In a recent interview with Yahoo Finance, Hays Australia managing director Nick Deligiannis stated; “There are signs that there could be a ‘Great Resignation’ in Australia soon, too. The pandemic has been a rude intrusion to many Australians’ career plans. They have put their career plans on hold to help their organisation through the crisis and recover. Now, they are focused on their career again and are prioritising advancement. But while career progression is valued, just 16% of employees expect to receive a promotion in the next 12 months.”
The reason for this shift is not just down to employees evaluating what they want from their career. The reasons behind this shift includes lack of promotion opportunities, followed by non-competitive salaries, and poor management style or even toxic workplace cultures. Our recent Employee Engagement Guide covers a number of these topics and how to manage them.
Many employees simply do not like how they have been treated by their employers during the pandemic. Whether this is the lack of support, building work pressures while tackling home schooling or that their employer failed to provide any career opportunities during lockdown.
What can you do to prepare?
One thing for sure is that the Great Resignation is coming our way. We can’t prevent it, but we can prepare and perhaps slow down the effects within our businesses.
Employee Engagement & Retention
In our recent Employee Engagement Guide, we breakdown the Employee Engagement drivers and understand what an employee is looking for and what an organisation should provide employees.
It’s important when we define employee engagement that we understand the drivers that make up an engaged employee and an employer that is ready to attract and retain engaged employees.
The drivers below have been split into Employee and Employer alignment. The Employee drivers show what employees are looking for and the Employer drivers demonstrate what an employer should provide the employee. Culture sits in the middle, as all these drivers contribute to creating a positive culture.