The Great R**********

Your business is doomed...

40% of your staff are going to resign. You won’t be able to hire good people ever again. There is no talent on the market. The talent you have will leave you. The end is near as the Great Resignation, the Great Rehire, and the Great Retention are all upon us.

Right?

Well, not really. While these phenomena are part of the current global employment market, there is a lot of misinformation around. It’s true that some employers have recently faced real recruitment and retention issues. However, the impact of what I call the 3 Great Rs on your business depends on your geography, industry, and many other factors. Here is what we really know about the Australian market and businesses.

The Great Resignation

The Great Resignation is a term coined by Management Professor Anthony Klotz. Also known as the Great Reshuffle or the Big Quit, it refers to a post-pandemic economic trend where employees resign from their jobs voluntarily. Also, Microsoft research in 2021 predicted a staggering 41% short-term attrition.

It’s undeniable that many of us re-evaluated our priorities because of the pandemic shock.

In turn, some candidates and employees have new requirements and expectations from employers. However, it’s not all doom and gloom.

Each region is different

The Great Resignation is a term describing the US market. While it may also apply to other parts of the world, the numbers are not the same. According to research by the National Australian Bank, approximately 20% of Australia-based employees switched jobs last year with 25% more considering a move in the future.

While these statistics might show that the Great Resignation is real, it may in fact not be as dramatic as sometimes described.

Then, research from the Pew Research Center, a US-based think tank, shows that employees who resign do so due to being underpaid, not having growth opportunities, or being disrespected at work. These have always been potential resignation reasons, so it may be that the workforce has just become a bit more sensitive.

However, this should only be a concern for businesses whose employee value proposition (EVP) is sub-par. If you pay market average as a minimum, provide quality training and development opportunities, and also offer a strong employee experience, then you don’t have to fear. Culminating a strong culture, offering equal opportunities, and being a good corporate citizen can also be key.

The Great Resignation won’t last forever. According to Anthony Klotz, the same person who coined the phrase, quitting is likely to decrease in 2022 and beyond. So, while you should consider this phenomenon when designing your HR strategy, keep in mind that a big part of it has already happened.

The Great Rehire

Some of your employees recently resigned and some more will do so soon. At the same time, the economy has partly recovered from the pandemic and is currently going strong. This is also reflected by Australian unemployment and underemployment figures, which are at healthy low levels. Enter, the Great Rehire, a term referring to employer’s mass recruiting talent. This seems to hold true in Australia, with SEEK reporting the highest number of job vacancies in their 25 year history. However, is this a problem for you as an employer? Not necessarily.

Facts

The higher job supply may mean that some employers find it harder to hire top talent. However, this depends a lot on your industry, employer brand, vacancies, even the location of the job. For example, according to recent REED data, Hospitality businesses are in desperate need of talent. They are advertising and hiring as aggressively as possible as the talent shortage is so prevalent.

SEEK: "highest number of job adverts in 25-year history"

All these additional jobs on SEEK shouldn't pose a problem, as the majority of them are being filled. No one shares that data with you. While there are statistically less applicants for every role, it only takes the right ONE candidate to get each role. Therefore, I’m suggesting that quality applicants are still applying, although not the “quantity” that we may have seen before.

Recall what happened in early 2020; everyone held their breath as the pandemic took its grasp across the world. CEO’s and business leaders put on hold every project they had in the pipeline as the unknown unravelled. Every new initiative and all big hiring campaigns were instantly cancelled. And yet, here we are 24 months later, and as the pandemic starts to ease, and as confidence returns to the board room, these new projects are back on the minds of business leaders, and these projects are back on the priority list. The previously cancelled talent required, is suddenly now back in demand.

The Great Retention

Retention or realignment?

Since resignations have increased, employers find it more challenging to retain their talent. The term “Great Retention” describes the efforts companies make to maintain their workforce.

While this is an important part of any HR agenda in 2022, some employers have got it wrong.

It’s true that an employee experience that is not on par with your competitors won’t cut it anymore, as we operate in a candidate-driven market. I don't need to tell you about that. So, if you feel you should invest more resources in the fundamentals - such as your EVP, employer branding, culture, flexibility, compensation, and career growth, you are probably right. Call this your Great Realignment if you like.

EVP is everything

But you should have already identified this in your business, acted and already be poised for the rest of 2022 and beyond.

If you haven't, then I'd question if you've been reading too much about the other two Great R’s for the past 24 months.

If you already have a sophisticated HR function who has adapted, and you have an agile, articulate, and educated Talent Acquisition team, all you need to do is be reactive to market changes.

Attract the talent you already have

Look inside your own business for talent that already exists. Have an internal mobility plan to help your own people grow within roles where you can teach them the skills they need. “Keep people on the bus - just find them the right seat”. For more insights on mobilising your internal talent, read a great article HERE.

Final thoughts

Each generation has different requirements and expectations based on major events. While COVID has shaken things, it’s not the first time it happens in business history. Employers, including your business, have successfully adapted to new circumstances in the past and can do the same now.

The Great Resignation, the Great Rehire, and the Great Retention are here.

But only in certain degrees and not all at once. Depending on your circumstances, they may have made things a bit more challenging when it comes to attracting, hiring, and retaining talent. However, this is not a reason to panic. Rather, it’s another reminder to keep refining your recruitment approach.

Firstly, make sure you have access to the talent acquisition expertise you need. Then, understand the needs of your people, design relevant solutions, and execute them in alignment with your needs. Concentrating on all these factors will pay-off in the long-run as you start to win in the war for talent.

What are your experiences of any of the Great R's? Have you been impacted as much as the stories proclaim? Do you have initiatives and actions to combat them? Have you looked inside your own business for the answer - or have you just read the theory? I'd love to hear your comments.