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The Great Resignation and what it could mean for you

 

One of 2021's biggest business trends, 'The Great Resignation' is a phrase that has been bouncing around the blocks. If you haven’t heard about it yet you may have been living under a rock.  Welcome back to reality.

To give you a quick download, the trend has been characterised by an enormous spike in the number of employees leaving their jobs in the face of the pandemic.  If we go back to the start of 2020, a certain number of people were going to resign and start new jobs over the course of the year.  This is what we would normally expect and people move for a variety of reasons. There would have been employees in every organisation planning that change before BANG. COVID-19 hit, and plans (along with the rest of the world) changed.

This meant 2020 was a strange year for job seekers.  AugmentX consultant, Jesse Whitehouse, reported that during this time candidates were hesitant to move unless it led to a significant improvement in their situation.  This was driven by the uncertainty that was being felt in the job market as organisations stopped hiring and redundancies occurred. Seek reported job numbers dropped to less than 50% of pre COVID levels.

 

WHAT HAS CHANGED IN 2021?

At the start of 2021 as we would expect, a certain number of people were going to resign and start new jobs over the course of the year, the difference is that the people who would have left in 2020 were still there, and they were still thinking of moving.

 

Essentially the Great Resignation is 2 years’ worth of resignations occurring in a short period of time 

 

2021 has led to record numbers of jobs to be advertised, Seek NZ reported a 24% increase on 2019.  When you combine this with the lack of access to international talent due to border closures across Australia and New Zealand, this period has led to more opportunities than ever for job seekers, and bigger challenges for employers.

 

WHAT ARE JOB SEEKERS SAYING?

AugmentX consultant Jesse Whitehouse talks to candidates every day - here are some trends that he's noticing:

  • More flexibility:  2020 has changed priorities for employees.  Flexibility and the ability to work from home have become the first things candidates are asking about.  Expectations have changed because we have all proved capable of getting the job done remotely.  The ability to leave early to pick up kids, or attend an after school dance lesson is something people are prioritising in 2021.
  • New challenge: candidates want to be inspired and feel part of something special.  They are less likely to take a job in a company they don’t see as interesting.  The best candidates want a challenge, they want to build something, grow something, and be part of something they feel engaged with and can be passionate about.
  • More money: in the data and technology industry, salaries have rapidly risen in 2021, this is partly driven by supply and demand, but also because often pay increases were deferred in 2020.
  • Emphasis on values: employees have reflected on how they or colleagues were treated, what is now important to them and their families and are making changes that impact both their home and workplace.

 

THE BENEFITS?

  • Job seekers now have lots of opportunities to find a role which is the right fit for them and be well remunerated for it
  • Employees: companies have to be creative or raise the standard of their environment to not only keep their current employees but also appeal to the right people

 

SO WHERE DOES THIS LEAVE YOUR BUSINESS?

The upside is that you have employees who are engaged and want to be there.  You can feel confident that the next person you hire has other options and has chosen you because they feel they can add value, contribute, and grow within your organisation.

If you are struggling to retain talent, some of that is just a factor of the times we live in, but it might give you pause to assess how you are treating your people.  It is not necessarily about an exhaustive list of expensive benefits, but about creating an environment where people can thrive and add value.  Employees want to be treated like adults, visibility over the objectives of the organisation and to understand how their role will affect those objectives.  Employees want to be supported, encouraged, and trusted to do the job you are hiring them for.    

This market will settle down, most people remain in jobs for 2-3 years, so anyone who has recently joined a company is likely to be there for a while, it’s a critical time to train and develop your new hires.

Most organisations have something special they can offer employees, something they are passionate about – why they exist.  Changes may be needed to appeal to that top tier of candidate that you are missing out on.  AugmentX are currently experiencing the best results by directly targeting the right candidates for clients after talking and listening to the client to understand the heart of their business and what makes them unique, creating a profile of what culture fit and skills are required and then reaching out to people in their relevant network, sharing why a fit exists with the client.

 

If you need help looking for, or attracting the right people for the job, get in touch with our consultants at AugmentX for a chat, or if you're after an end to end analytical solution implemented with ongoing support to build your team, reach out to us below. 

 

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