The Great Resignation: What is it that workers really want?

Surely, you must have heard or read about 'The Great Resignation' a few months ago. Where we are witnessing "The Great Resignation," a mass exodus of workers from their jobs all over the world. Where millions of people voluntarily quit their jobs, ranging from front-line workers to senior executives.

With the ever changing nature of business, ongoing COVID-19 concerns, and the changing relationship between employers and employees, the industry’s future in Australia, is to put it mildly, precarious.

According to recent Microsoft research, more than 40% of the global workforce is considering leaving their current employers this year. Companies are bracing for a seismic shift in the workforce as a result of the mass exodus, and this trend is likely to extend to Australia.

Believe it or not, there’s a sizable gap between what workers want and what leaders THINK they want.  When it comes to their current workforce, top executives are extremely confident about worker sentiment; none reported their employees were even slightly disengaged. This is consistent with employee perceptions; a study found that employee engagement was high across Australian organisations (at 78%). When we incorporate this sentiment with the high proportion of employees looking to leave their employer, we get a startling result for leaders. A false sense of security may provide comfort to top executives. In today's environment, we can't equate staff morale with intent to stay.

Employees, according to ABC reports and research, do not want to be seen as workers; they want to be seen as human beings with rich, real and full lives. Simply put, they are not just interested in the work experience they can gain. They are curious about what an employer does to improve their life experience. Workers have left their old jobs in search of those that can provide them with a more holistic experience because employers have failed to provide this.

According to reports, 14% of the workforce in Australia is actively engaged and interested in their work, leaving a massive area for improvement and compounding the risk of this workforce shift for businesses.

The outlook of the Australian economy is exacerbating business concerns. China, our largest export market, is actively working to reduce imports, particularly of iron ore, a $133 billion annual industry that engages multiple businesses and employs a large workforce.

In contrast to the previous two decades, the Chinese economy is heading toward the same stagnation that many global economies are experiencing. Without this driving force, there will be unintended consequences that will have a negative impact on the Australian economy.

All of these concerns are surfacing at a time when the economy is attempting to recover from COVID-19, which puts us in a precarious position.

A dissatisfied workforce combined with a highly volatile economy is not a recipe for success and should be a major concern for any business owners with long term plans.

With increased transparency expected around historically sensitive information like pay, most likely via sites like Glassdoor, as well as the social dialogue around fairness and equity, it has never been more important to ensure that the remuneration aspects of your EVP are market-competitive and that variances are justifiable.

One size does not fit all. Talk to us today and let’s figure out how to strike the right balance for your company.