What Is The Great Resignation?
The Great Resignation, a term coined by Anthony Klotz (Stark, 2021), refers to the growing trend of staff quitting their current roles in search of flexible working practices, better remuneration and opportunities to broaden their skillset, rather than the traditional approach of committing to an organisation for life. The trend started with employees re-examining their careers and goals as a result of ongoing and sustained COVID-19 restrictions, and economic and social impacts.
The severity of the Great Resignation can be quantitatively proven by the Job Mobility percentage, which highlights the percentage of employees that changed jobs within the last year. The Persons Job Mobility rate from 2021 (Australian Bureau of Statistics, 2022) shows a percentage point increase from 7.5% in 2021 to 9.5% in 2022, and is the highest increase seen since 2012.
The effects of the Great Resignation have been felt across different sectors as well as businesses of varying sizes. Regardless of the business the results of the trend include higher recruitment and training costs in the replacement of staff, and the loss of vital experience and corporate knowledge as employees exit.
(Australian Bureau Of Statistics , 2022)
What Can You Do?
After reviewing these figures, you might be feeling a little bit hopeless, however do not stress! There are opportunities to increase retention of staff and ensure recruitment efforts are effective in the replacement of staff. These include:
- Fostering a Positive Culture
Achieving a positive workplace culture is far easier said than done. However, by ensuring you’re bringing people with the right fit into the company and continuously working to develop the culture with existing employees it’s possible to foster a clear and tangible culture across the organisation.
Company Values and Vision statements are key in achieving a positive culture as well as providing a connection for staff to the purpose of their roles and responsibilities. TMS Consulting has found that staff with a clear connection to the purpose of the organisation are likely to be more engaged, committed and energised.
- Embracing Hybrid Working Practices
With an increase in online or hybrid working practices there are opportunities for increased flexibility for employees in different working practices, and employers can decrease fixed costs of office spacing (TMS Consulting, 2021). This move away from the idea of ‘logging your 8 hours a day’ also provides flexibility for working parents, students, and those with personal commitments to still contribute and feel valued for their work without the guilt of not being ‘online’ at normal working hours.
The major concern with flexible working is that staff aren’t committed to getting their work done without a manager sitting behind or opposite them. This can be mitigated through the clear setting of goals and key outputs that are required of employees and a shift in mindset from time contribution as a sign of work completed to action completion being a measure of progress or success.
- Providing Competitive Compensation
With the cost of living on the rise, employees are seeking competitive compensation for their efforts and in a lucrative job market employers are required to be increasingly conscious of these requirements and match expectations accordingly.
In addition to monetary compensation and attainable bonus structure, non-monetary compensations including the flexible working arrangements mentioned above and clear future career path opportunities are key to attracting and retaining quality employees and remaining competitive in the current market (Payscale, 2022).
The three tips above can form the basis of your organisation’s strategy for attracting and retaining quality employees and navigating your way through The Great Resignation. If you or your organisation would like TMS Consulting to support you in employee engagement or culture activities, please contact us at solutions@tmsconsulting.com.au.
References
Australian Bureau Of Statistics (2022, September 06). Australian Bureau Of Statistics. Retrieved from Job mobility: https://www.abs.gov.au/statistics/labour/jobs/job-mobility/latest-release#:~:text=1.3%20million%20people%20(or%209.5,of%20those%20who%20changed%20jobs
Payscale (2022, July 21). Competitive Compensation: What It Is and Why It’s Important. Retrieved from Payscale: https://www.payscale.com/compensation-trends/competitive-compensation/
Stark, A. (2021). Anthony Klotz on the Great Resignation. OH: Society for Industrial and Organizational Psychology.
Tips of Leading a Hybrid Team – TMS Consulting (2021, September 20). Retrieved from TMS Consulting: https://www.tmsconsulting.com.au/blog/tips-for-leading-a-hybrid-team/
