The ‘Great Resignation’
In the past two years there have been many changes in the Employment space.
As we shift towards living with COVID-19, businesses are now facing with a new problem; “the “Great Resignation.” A concept that was coined in America and is expected to hit Australia in early 2022.
The “Great Resignation” as the name suggests is effectively that, a large number of resignations. Experts are proposing many employees will resign. This is made up of several reasons, as outlined below:
Reasons for the ‘Great Resignation’
Holding Back
With an unstable economy over recent times many employees have held off submitting their letter of resignation due to the uncertainty of securing alternative stable and suitable employment. There are employees who have been unhappy in their current employment through 2021/22, however due to the impact of COVID-19 on many workplaces they have sat tight in their current employment.
New opportunities for employees
Businesses are now able to think about the future, plan and focus on growth. This creates opportunities for Employees looking to leave their current employment either via newly created roles or roles that are now available due to resignations, restructures and career progression.
Flexibility
The last two years have seen many businesses forced to work from home due to Government mandated restrictions. With the easing of restrictions Employers have the option to request Employees return to the physical workplace. For some this is a win and for others it is a real deterrent.
Creating the perfect balance is key. Some Employers will want everyone back in the office and other Employers will be happy for their Employees to keep working from home or a mixture of both. So what happens when the Employer and Employee viewpoints do not align? The parties will go their separate way to find their preferred working conditions.
Living in the shadow of COVID
All in all with the economy opening back up, the country is learning to live with COVID-19. Businesses can no longer afford to wait to act upon their retention strategy. They need to be proactive in looking for ways to retain their Employees. Employees are no longer scared to go after exactly what it is they want.
Being an Employer is challenging at the best of times, and having a strong and committed team around you makes it all the more easier. Our advice is to be open and aware of what may come.
Be prepared to negotiate and understand exactly what it is your Employees are seeking and whether that is achievable for your business. Acting now on ways to stop Employee resignations will help minimise the effect it has on your business.
Stay tuned for Part 2 of our ‘Great Resignation’ article focusing on strategies to consider and implement to avoid the impact of the pending “Great Resignation.”
If you have any questions, or need expert advice in preventing the Great Resignation from happening at your firm, contact our team now.
