How to Navigate ‘The Great Resignation’ and What it Means for Your Business
The term ‘The Great Resignation’ is being thrown around a lot these days. We are hearing of how this phenomenon is sweeping the US and UK, so what does it mean for businesses down here in Australia?
With our Australian international borders being closed for nearly two years and our states in and out of lockdown, Australian businesses have significantly suffered from a lack of skilled migrants and lack of employees to meet consumer demands.
For the first time, in a long time, Australian professionals have a significant advantage.
With this and the burnout suffering that has accompanied it, the pandemic has allowed employees to reassess their working conditions and work-life balance resulting in a flood of voluntary resignations.
It is estimated that 48% of Australian workers are planning on seeking new employment within the next 12-months. All the data and research indicate that employers have a rough road to navigate ahead, so what can they do to retain current and attract new workers?
The current themes are pointing towards flexibility, wellbeing, employee development and salary.
Wellbeing & Flexibility:
With an increased workload from the talent shortage and unrealistic expectations, there is a significant need for a greater balance between employees work and personal life. Remote working has been popular during the pandemic, with greater flexibility around work and family commitments. It has also highlighted the need for more mental and wellbeing support.
How are you, as an employer demonstrating your commitment to your employee’s overall health and wellbeing?
Conducting regular check-ins with your team is a start. How are they feeling? Do they have work-life balance habits in place? Are they adopting healthy practices? If not, how can you as an employer help?
At check-ins, it is also critical to ask regarding their personal and professional development. Are they being challenged? If they are not, they will likely be unmotivated and lose interest in their current role. A lack of development opportunities and no clear career path with their current employer will encourage professionals to look elsewhere, especially if they are confident in their abilities to find new employment in the current market.
Development plans, feedback and coaching are all tools’ businesses can implement in order to appeal to applicants and satisfy current employees’ aspirations.
Australian employees and job applicants are in great positions to negotiate their salaries, with the alternative to risk losing them and their skills. Before agreeing to their demands and grossly overpaying, it is important to understand the market median. Salary benchmarking is a useful tool to better understand a fair and reasonable salary and to help employers navigate demands and requests. With the current talent shortage, it’s to be expected that employers will have to pay above the market median to retain and seek talent, but it is important that this is justified by current statistics and market trends. Reviewing your overall remuneration strategy and total package rewards is the best option to create attractive pay packages that match market and include incentives that drive and rewards the behaviours and outcomes the business needs.
Employee development, coaching and salary benchmarking is a start, these topics can often be overwhelming as employers are navigating unchartered territory. The team at TalentCode HR are always here to assist you and provide you with advice to get you started in the right direction. Feel free to call our team on 1300 559 585 for a discussion on how to retain and attract talent during ‘The Great Resignation’.