The Great Realignment

Predictions by economic leaders all point to the phenomenon known as the great resignation hitting Australian workplaces around march 2022. Smart Aussie leaders are prepared with a strategy: the great realignment.

The ‘Great Resignation’ is a term originally coined by Dr Anthony Klotz from A&M University, Texas, to describe the record ‘quit rates’ in the USA, Europe and UK as a result of the pandemic.

Australian business leaders and HR experts have been following these trends and are ready for the changes that have been sweeping the globe in the wake of the pandemic. These include action plans to meet the Great Resignation, an open mind and a strategy to facilitate the changes required in the post-COVID workplace. There is no doubt the pandemic has created a geographical, emotional and psychological shift, changing the employment landscape forever and creating a ‘new normal’ in the workplace.

The series of lockdowns in Australia over the initial 18 months gave people time to reassess where they are, why they are there, what they’re doing and, most importantly, what is important to them. Returning to a changed workplace, after achieving double vaccination rates in November 2021, created further challenges for both employers and employees.

In the new workplace landscape, the businesses that are truly prepared to listen to their employees, think outside the square and make changes to traditional working conditions will not only survive but thrive, by retaining their top talent and attracting the best in the moving job market.

Changing minds, changing jobs

Australian figures echo the trend in resignations in both the USA and UK. A survey by UK recruitment firm Randstad in which 6,000 employees were asked about their future plans revealed a whopping 69% were planning to change jobs in the next 3 months and 24% were planning on a job change in 6 months. A dramatic upturn considering the norm for change in the UK job market is at 11%. And in the US, a 2021 Gallup Poll confirmed 48% of the working population was actively searching for a new role.

Adapt to thrive

There is no doubt that workplace change is here to stay and employees are on the move! Employee priorities have changed and employers can not stick to prepandemic principals.

Eager to be in a position to manage the Great Resignation and be part of the Great Realignment, savvy employers have been reassessing their employee value proposition (EVP) and hiring or enlisting the help of People & Culture consultants to ensure they pivot their workplace offers to retain their top talent and attract the best of those ‘on the move’.

The average time to fill a vacant role is now 82 days, up from an average of 68 in 2018 – a figure that has doubled since 2010. Businesses need to be preparing for protracted labour shortages during the recruitment process.

Additionally, it takes on average 26 weeks for a new hire to be fully competent in their role, providing great incentive to implement changes that will ensure you hold on to top talent already in your business.

Understanding what workers want

Managing the Great Realignment is not all about providing employees the opportunity to work from home. Employers who are brave enough, or simply care enough to take time to ask the hard questions to understand what employees want and why employees choose to stay or leave, are taking the first step towards creating a truly valuable EVP and are five times more likely to retain and attract top talent. Initiatives taken by leading companies including Finder, CISCO and Amazon to attract and retain top talent include:

• Providing greater flexibility by creating 3 and 4 day working weeks rather than the traditional 5 days.
• Introducing 5 extra days of leave to be taken for breaks-ups, moving house and their child’s first day at school.
• A ‘Day for You’ day in which the employee is encouraged to take a day that is all about them.
• Give Back Days – providing up to 5 days for employees to volunteer in areas of their interest.
• Creating a pet-friendly zone in the workplace – allowing employees to bring their fur babies to work.
• Unlimited leave

Survey to check your leadership model
and expectation gap

The old adage, ‘you join a business, you leave a boss’ has never been more relevant than in the modernday migration of employees. Whether you gather your data using Exit Interviews or Employee Satisfaction Surveys from people currently engaged in your business, a good EVP always comes back to 6 main elements: respect in the workplace (inclusive leadership), competitive compensation, work-life balance (flexibility), open communication, stability and location.

Gathering the information is only the beginning. Insightful employers are willing to actively look at the information gathered and address the ‘Expectation Gap’. This is what employers think employees want and what they really want.

Understanding why employees are leaving

The reasons Aussie workers give for wanting to change their jobs are as varied as the value propositions that attract people to an organisation. The top 4 reasons for quitting roles include:

1. The backlog of people who stuck with jobs they did not really like, but felt they had no option but to stay during uncertain times.
2. The feeling of overwhelming burnout after almost 2 years in lockdowns of one form or another and simply needing a break.
3. A readjustment of proprieties that took place while they were at home more than they were at work, providing the opportunity to focus on family life, hobbies and interests outside of work.
4. Reluctance to travel long distances to work in an office environment, people are choosing roles that offer a work from home options.

Change your thinking about the traditional workplace

There is no doubt that employees are rethinking their lives and their careers as a result of the pandemic.

They are realigning their goals and values and wanting to work for organisations that reflect their passions and can deliver on their needs and wants. While pay will always be a factor in staff retention and attracting new employees, flexible working conditions, solid communication tools and strong workplace relationships now play a much bigger role in employee decisions to stay or go.

There is no better time to be looking closely at your business brand and workplace culture and developing a solid employee value proposition to address employees. It’s time to start thinking and acting; What does your business have to offer your existing team? How do you stand out from your competitors in order to attract and retain new talent?

The companies that accept this change is inevitable, and can adapt to a new way of thinking, will have the competitive advantage and thrive in the post-COVID era. AMP