Article published 11 March 2022
Back in 2021, software giant Microsoft predicted ‘The Great Resignation’1. It was based on research that suggested 41% of the global workforce was likely to consider leaving their current employer within the next year.
It was a bold prediction. But many employees are rethinking their options. Closer to home, a NAB survey found over 1 in 5 Australians changed jobs in the last 12 months, and almost 1 in 4 are considering it2.
That’s a worry for employers because right now, businesses can find it hard to attract skilled labour.
The latest data from Seek shows job ads nationally were up 35% in February 2021 – and 41% higher compared to the same month in 20193. On the flipside, the number of job applicants was down by almost 40% in January 2022 compared to the start of 2019.
Recruitment firm Robert Half sums up the situation, saying the national labour shortage coupled with strong hiring activity, has created the ideal conditions for Australian workers looking to move on4.
How your business can compete
Loss of staff and the rehiring process can be disruptive and costly for a business. So, it may be more cost effective to embrace strategies that encourage staff retention.
Offer fair pay
A good starting point to hold onto your best people is to pay market salaries. The NAB study found that among those planning to change jobs this year, 27% cited poor pay and benefits as a reason for leaving.
A number of the large recruitment firms publish annual salary guides that show the market pay for various roles across industries and locations. They can help you understand if your business pays competitive wages.
Rethink your workspace
Having enjoyed the flexibility of working from home, not all Australians are keen on a return to full-time office life.
That’s according to a report by PwC5, which suggests businesses need to make their employees’ commute back to the formal workplace worthwhile by providing “stimulating and inspiring spaces” that are designed to help employees do their best work.
It may also help to keep flexible working options on the table. The NAB report found being unable to work from home (10%) or a lack of other flexible working arrangements (12%), were among the drivers that see employees hand in their notice.
Provide opportunities to upskill
For some employees, opportunities to upskill and grow professionally can be the key to job loyalty.
A study by RMIT and Deloitte found over half the respondents surveyed would choose additional training worth $1,000 over free lunches at work, and one in five would choose it over a pay increase of $50 per week6.
Business funding can make a difference
Offering all, or some, of these benefits can help to retain staff. But it can come at a cost.
No matter whether it’s redesigning your workplace to make it more engaging; investing in technology to allow flexible work options; or providing a pay uptick or access to training opportunities, businesses may face new expenses – and that means parting with valuable cash.
Will the cost be worth it? The answer could be ‘yes’. One recruitment firm estimates the total cost of replacing an employee to be anything from 30% to 150% of their salary depending on the size of your business7.
Fast, flexible business finance
The good news is that your Mortgage Choice broker can offer fast, efficient access to business finance, and give you a clear idea of the cost, letting you make an informed decision about the return on your investment.
Even better, your broker will do all the leg work organising funding, so you can focus on growing your business.
If you’re exploring new initiatives to hold onto your best people, it’s worth a call to your Mortgage Choice broker to discover ways of funding it all.