Six ways to prepare.
The Great Resignation is a hot topic. But what does it mean, and will the Australian employment market be impacted?
The term “The Great Resignation” was coined by Professor Andrew Klotz who predicted that, following the pandemic, more than 40% of the global workforce would start to retire early or resign1.
Whilst some Australian employers are already experiencing a labour shortage, Aon expects more organisations will see the impact of this global trend during the second quarter of 2022. While it’s still unclear how severe the trend may be in Australia, what we anticipate is, at a minimum, a re-framing of the traditional employer-employee relationship.
What’s behind the drive to change jobs or leave the workforce?
According to Aon’s 2021 Global Risk Management Report, attracting and retaining talent is now among the top 5 risks facing Australian employers, rising from 7th place in 2019.
However, the reasons why employees are seeking change can be complicated and nuanced. To start with, COVID-19 has altered how employees view their relationship to work. People are starting to place a higher value on intangible aspects of total reward, such as a supportive culture, flexible work arrangements and projects that align with their personal values. As lockdowns ease, employees who had planned to change jobs before the pandemic are likely to look around again. However, their definition of a ‘good employer’ has probably shifted.
Today, employees expect more than just a good salary. Since COVID-19, non-monetary benefits have become more highly valued, such as an inclusive work environment, health and wellbeing programs, financial education, career guidance and access to learning and development opportunities.
“Everything is on the table for re-negotiation as the employer/employee contract pivots in favour of employees.”
Read the article to learn six steps employers can take to maintain their position in a competitive market.