The Great Resignation: What Your Need to Know
Covid-19 caused the global transformation. Large-scale disruptions in various industries pushed many people to reassess what is most important to them. Employees have reexamined their professions and career paths as a result of that period of reflection and introspection. Anthony Klotz’s term “The Great Resignation” better describes this workplace revolution.
The major issue that needs an answer is whether The Great Resignation Australia is taking place or not? Let’s first delve into the basics of it;
What is the Great Resignation?
People experienced different modes of work during COVID-19, such as remote or hybrid work. Numerous workers realised they weren’t happy with their workplaces across a variety of job markets.
The Great Resignation 2022 is not just a hypothetical concept. It is an actual economic movement supported by data from the U.S. Bureau of Labour Statistics.
Over 47 million Americans willingly left their jobs in 2021, according to the U.S. Bureau of Labor Statistics. This unprecedented mass exit of employees from the job market, sparked by Covid-19, is now referred to as the Great Resignation.
Why Great Resignation Happened?
A few major causes drove it, but employees evaluating everything from flexible working, mental wellness, working hours, and work-life balance caused such an acceleration. Employers and job seekers are becoming more knowledgeable about mental health benefits.
According to a study by Harvard Business Review, employees are 23% more likely to suffer from mental health problems if their managers don’t communicate well with them.
However, is Covid-19 all to be blamed for this trend? The Great Resignation of 2021 was sparked by Covid-19. However, the current job market situation goes beyond the short-term difficulties caused by the pandemic. Instead, the rising quit rates have been a trend for more than a decade.
One in five workers throughout the world wants to leave their jobs in 2022, suggesting that the transformation in the workplace is progressing quickly.
With Covid, discussions about mental wellness and work-life boundaries have been on the rise. Resultantly, the majority of businesses are revisiting the employee value proposition and including employee well-being programs to survive in the job market.
Understanding the Great Resignation Australia- – Is it happening?
Australians are reevaluating their professional and lifestyle options due to periodic lockdowns and greater workloads caused by a lack of labour in the country. They have also had time to reflect about work-life balance given the significant changes in working patterns brought about by Covid-19.
PwC Australia surveyed more than 1,800 Australians. Its purpose was to help companies understand what workers want as the job market evolves.
According to the PwC report, What Workers Want: How to Win the War on Talent, 38% of Australian workers plan to leave their present company within the next year, and 61% of those who left an organisation in the previous year intend to do the same.
However, 55% of Australian employees anticipate remaining with their current workplace for at least five more years, indicating that either people will quit quickly or stay for a very long time.
Additionally, 93% of Australian workers say they feel trustworthy, and 77% say they are engaged in their work, all of which are necessary for the effectiveness of the hybrid work mode.
This may reassure employers, especially after the difficult years of Covid-19, but it does not always encourage loyalty.
According to Dr Ben Hamer, Future of Work Lead at PwC Australia, “Australia is on the brink of the Great Resignation.”
It’s crucial to remember that the resignation drive also has some positive features. It gives employers and employees a chance to review and start over. The workplace has a better environment, and the company will grow when both employers and employees can be open and honest.
How to Minimise the Impact of the Great Resignation and Retain Your Talent?
It has put pressure on businesses to retain their best employees and quickly rehire as people keep resigning. This has also made the HR department job more difficult. However, you can use HR technology in the methods listed below to maintain employee retention.
1. Keep in Touch with Your Team
The dynamics between businesses and employees have shifted over the past three years. As a result, HR departments must work to manage employees using digital communication channels.
The preferred applications now include VoIP calls or live chat programmes, calendar planning programmes, and real-time file-sharing programmes.
2. Performance Evaluation
Your company needs to highlight the advantages of the employee’s position and encourage them to make improvements.
By using performance evaluation tools, employers will be encouraged to recognise their capabilities and work toward further development. The best tools like EmployeeConnect will offer standards, benchmarks, and objectives to strive for.
3. Reward your Best Employees
The idea of meritocracy is essential to running a business. The businesses with the greatest people retention and recruitment strategies will continue to have an advantage in the competitive job market.
4. Encourage Feedback from Employees
The idea of feedback is crucial to improvement. Employees have the opportunity to share fresh ideas as well as express concerns. HR teams will benefit from a more productive and content team if they put in extra effort to listen.
5. Work on the Onboarding Process
The onboarding step of the employment cycle is the most crucial phase. Employees will form their initial opinions of your company, its procedures, and its culture at this phase. In the long term, taking extra caution here will undoubtedly pay off.
The employee now holds a stronger position than the employer. Talent demand is rising more than ever, and those who can’t adapt will not be able to survive in the job market.
Companies need to understand what employees actually want in order to reinvent their employee value proposition. Resultantly, they can insulate themselves from the full impact of The Great Resignation and attract the right talents.
EmployeeConnect has your back to review the HR operations and support your company’s strategies to combat this trend. Let’s give it a shot!
If you need a HR software to not only increase your HR departments communication throughout the entire organisation but also improve employee engagement, workplace collaboration, employee onboarding and many more tools and benefits sign up for an EmployeeConnect demo.