The last several months have seen a sharp spike in resignations in Australia and around the world, in what has widely been dubbed ‘The Great Resignation‘. Research has revealed that 31 percent of Australian workers are looking to move jobs within the next six months, spurred on by the strong labour market conditions. 

As these high attrition rates show no sign of waning, it will become increasingly important for employers to focus on their methods of retention in order to keep their trained employees on board.   

The first steps are to identify the major reasons why employees are leaving in the first place. From here, employers can create a retention strategy that addresses those issues and create compelling reasons for them to stay. 

Here are the four main reasons why Australian workers are looking to move jobs in the next six months according to data from SEEK, and what employers can do about it. 

1. Career progression 

According to a study of 2000 employees, 43 percent said their career paths have either stalled or slowed to a crawl, and 47 percent said they are currently looking for a new job that provides growth opportunities. This is particularly true of younger employees, with 38 percent of the Gen-Z workforce looking for jobs with greater transparency around job path and development.     

The pandemic has created restless employees who crave a meaningful professional path, and employers can improve retention by creating a sense of forward momentum. Managers and HR teams should be encouraged to regularly sit down with individuals to develop professional growth plans, uncovering where employees want to develop – whether it’s taking on more responsibilities or moving into a different role. Having clear communication and transparency around an employees’ future within a company gives them a greater sense of purpose, belonging and feeling valued. 

2. Better remuneration and rewards 

According to the Reserve Bank of Australia, more Australians are quitting their jobs for higher paying ones, as wage growth improves to roughly pre-pandemic levels. While remuneration and rewards (which includes fixed pay, alongside other financial incentives like bonuses and lifestyle benefits) have always ranked highly as a factor linked to job satisfaction, the pandemic has put job and financial security at the forefront of people’s minds. 

Many employees have come from a sustained period of working extremely hard through difficult conditions during the pandemic. They may have been required to pick up additional workload to cover vacant positions or take on new tasks due to a pivot in their role. Adding to this, there have likely been fewer opportunities for recognition throughout this time. For many employees, an increase in pay would be the clearest and most tangible marker as to how they feel they’re valued. 

With increasing transparency expected around historically sensitive information like pay, coupled with the knowledge that employers are paying more to secure candidates for certain roles, it will be important for employers to ensure that remuneration and rewards are market competitive. 

3. Burnout or lack of work-life balance 

According to SEEK’s data, 36 percent of Australian employees identified burnout, or a lack of work-life balance as one of their top reasons for leaving a job. 

A recent survey of 14,800 office-based workers across 25 countries found that Australian office workers are the most burnt out in the world following the second round of lockdowns in 2021. More than half of the Australian respondents said they suffered from burnout in the last 12 months, with 52 percent admitting they’ve taken time off due to mental health concerns during pandemic lockdowns.   

During the pandemic, many employees’ work and home life became blurred, seeing the creation of new mental health pressures and prologued periods of fatigue and despondency.   

As such, organisations should place an emphasis on creating structured wellbeing and support programs, and continuously reviewing their efforts in bettering employee wellbeing. This means fostering a sense of social connection, creating a psychologically safe working environment, enabling greater flexibility and providing access to support services. 

4. Poor leadership or culture in their current workplace

It’s no surprise that employees feel their workplace culture has been diluted during the pandemic, and that they’re feeling increasingly disconnected from their team. It’s also understandable that managers may have struggled to lead in the best possible way while being forced to contend with a hybrid workforce, a pivoting organisation and additional responsibilities. 

Research shows that our ability to connect meaningfully to others is less satisfying when we’re not physically present, but this doesn’t mean it’s impossible to generate culture and connection when working from home. Managers will need to be more cognisant of moving social events online, encouraging social interaction and regularly checking in with those working from home.   

Furthermore, as we move into our third year of the pandemic, it’s plain to see that the hybrid model of work is here to stay. Moving forward, learning how to effectively manage hybrid teams will need to become an important part of leaders’ training, so they are equipped with the skills to create a positive working culture. 

How people experience their role, including the organisational culture, relationships, diversity, team spirit and the energy of colleagues, all have a significant impact on an individual’s desire to stay within that workplace. Organisations that fail to recognise this stand to see staff walk away. 

If you require assistance in finding staff, contact Bayside Group today and speak to one of our consultants.