A global pandemic, time in lockdown, change of how we live and potentially a shift in how we work. This has been talked about by many, however a new phenomenon that has hit the USA and parts of Europe is being dubbed the Great Resignation
Individuals are re assessing their lives and coming into spring and out of lockdown making large decisions about work.
The US is about 6 months ahead of Australia here as they eased out of lockdowns earlier in line with spring in the northern hemisphere. What occurred was a wave of people shifting careers. With a large chunk coming from the following groups:
- Front line workers who have had enough of there roles
The front line workers are not just health workers but this includes retail staff, teachers, and some hospitality workers who kept working at the workplace whilst others worked from home
In terms of a local context, we had greater government intervention with the likes of jobkeeper and the aim of keeping employees connected. Will this impact our great resignation or not only time will tell.
- Employees who believe they had been miss treated during lockdowns
Employees are reevaluating what brings them joy and in 2021 it seems to be so much more than money.
How your Organisation treated staff is going to be critical to the impact on your business with regards the great resignation.
- Employees seeking more flexibility and for work from home to be the new norm
I have spoken of this for years with excitement for the future. I truly believe that skilled individuals living in the Hunter will be doing more telecommuting with Sydney. Working for global companies from home in Maitland. Earning greater salaries and a potential for our kids not to have to move to the ‘big smoke’ to get a start.
However, the flip side of this becomes local employers will sooner compete more readily with Sydney and beyond for local talent.
FLEXIBILITY IS NO LONGER AN ATTRACTION IT NEEDS TO BE A GIVEN
Is your business ready to deal with what will be the new normal around flexible workplaces post covid. Do you have the culture to survive?
Another factor from the US experience is, pre covid one of the major areas for a career shift was the opportunity for development and career advancement. Americans are valuing this much less and looking at how they work and how this fits their life with greater importance.
- Supply and demand for staff is seeing sign-on bonuses becoming more frequent in the employment space
In the US the IT sector has been the biggest market to be hit with regards this issue. Tech savvy employees are understanding the dynamics of supply and demand and there is a trend towards lucrative sign on fees and equipment purchases coming with a new employment contract
At HRG we have had one client discuss with us the potential to offer a cash payment upfront to entice trade labour to their workshop.
Supply and demand is a major factor in the current issues I discus with my clients on a daily basis. Is your business ready to wait for the right person? Can you train up staff?
The Great Resignation is a serious consideration for Hunter Valley employers to start to explore in their business. As we exit lockdown and return to some normality at the workplace. How we treat our employees, how we view the employment market along with how we recruit needs to change.
Recruitment is not just about sticking a job ad on seek and picking a person. It has always been so much more complex, but as the great resignation hits and the market forces demand more, how we recruit becomes a different dance.
I think we got a taste of this late last year as we exited jobkeeper. The fear that was driving lower job applications and the security of government payments declined and more candidates hit the market. As we transition back to work, back to life in late 2021 more and more local people will be challenging themselves as to what they want to do in terms of career.
The US experience will be similar here in the Hunter and now is the time to review your employment strategy.
If you would like to have a confidential discussion with me regards my thoughts on local impacts and how HRG can assist you to navigate this period in time. Then start a conversation with HRG today.