The Great Resignation in the US job market sent shockwaves across the world
As the echoes from across the Pacific sound closer than ever, the Great Resignation see to have finally arrived at the shores of the Australian job market. But for one Australian Insurtech, the focus has turned inward towards a mantra of retention backed by strong initiatives and employee well-being.
As employees begin to shop around for a better deal, it’s up to employers to be proactive in their approach to retain talent before they leave in droves.
“For us, retention is essential no matter the environment, as we invest in our employees both short and long term” says Olivia Barsby, P&C Business Partner at BizCover – a business insurance technology company located in Sydney. “Creating a welcoming and supportive environment that allows our employees to grow and succeed is always our top priority as this will lead us to attract and retain talented individuals who are right for our organisation.”
Lessons from America
While the alarm bells have sounded for the Great Resignation for a while now, Australia has not actually experienced a mass exodus in the job market.
As explained by Professor Martin Edwards in The Conversation, the hysteria has been largely borrowed from the United States where quit rates peaked in 2021 with 47 million Americans quitting their jobs.
During the same period, the proportion of Australians switching jobs dropped to its lowest point in 50 years, meaning people were sticking with their current jobs more than ever.
That is until now, where ABS data released in May shows there has been a significant increase in the proportion of employed Australians who recently changed jobs.
This was the highest amount since 2012 – a post-GFC period heavily influenced by a mining boom.
The recent findings have coincided with a fall in unemployment through the pandemic, reaching its lowest level since 1976 (494,000 people in May 2022).
Meanwhile, job vacancies have skyrocketed largely due to a chronic labour shortage in multiple industries, resulting in nearly the same number of unemployed people as there are vacant jobs (480,000).
Add a bit of wage growth in the mix and the conditions are set for the Great Resignation: Down Under.
What can employers do about the Great Resignation?
With the arrival of the Great Resignation on our shores, employers must figure out their next move fast. Looking back, the US may be the canary in the coal mine when it comes to strategies for retaining staff.
Factors like poor work-life balance, lack of recognition, and low salary were common reasons for people to leave, according to US business publication Entrepreneur. Many felt disrespected at work while others quit due to a lack of flexibility.
So, what can employers do now that it’s Australia’s turn?
“Embrace the Great Retention,” says Barsby. “Focusing on strategies like a flexible and supportive work environment, and an employee-centred culture will help retain employees and hopefully lead us to avoid this new phenomenon.”
Recently named a Top Insurance Employer for the second year in a row, BizCover has been leading its industry when it comes to promoting a diverse and flexible culture.
The company has posted a turnover rate in FY2021 close to half of its industry average (8.25 per cent compared to 16 per cent across Financial and Insurance Services) and has continued these strong results well into 2022.
The win of the Top Insurance Employer is no mean feat either: selected in part by an anonymous employee feedback survey, which scored the company across a variety of metrics, including benefits, compensation, culture, employee development, and commitment to diversity and inclusion.
These metrics may be the cornerstone on how a company can achieve strong staff retention and engagement rates going forward.
But knowing the key metrics and delivering strong results are two different things. To reduce turnover and in hopes of avoiding the Great Resignation in the coming months, Barsby says employers should, above others, consider the following two points if they are to embrace the Great Retention:
Promote a healthy work-life balance
“A positive work-life balance has become synonymous with the expectations workers have in the new normal we live in,” says Barsby. “To help our employees achieve this much needed balance, we have adopted the hybrid work model Five days a week commutes are a thing of the past – especially when there are so many other aspects of life to prioritise other than work.”
The stats back this up, with a recent survey showing 80 per cent of workers said that they would be more loyal to their employers if they had flexible work options.
A total of 31 per cent of the BizCover team permanently work remotely because of this approach, with staff employed in every Australian state and territory.
“I’d encourage employers to not only think about the big-picture in ter of whether they want their staff in-office, working-from-home, or a combination of the two, but to listen to their workers and understand their ways of working both individually and as a team.”
Embrace diversity
“One thing that has hugely contributed to our success at BizCover – is embracing the diversity of our BizHumans ,” says Barsby. “Diversity and inclusivity are intertwined into the very fabric of what it means to work at BizCover. Our BizHumans’ differing backgrounds, experiences and perspectives lead to a range of talent and skills and creates our unique culture, which is the secret to our success at BizCover
Countless studies have shown the benefits inclusion and diverse opinion can bring to the workplace. But importantly companies that embrace diversity are shown to reduce turnover and increase retention rates.
From supporting the LGBTQI+ community with its Boss Meets Boss initiative to achieving gender parity within the executive team, BizCover has championed diversity across the company – including recently launching its own BizEDI (Equality, Diversity, and Inclusion) program.
Barsby says this initiative is dedicated to ensuring that BizCover provides a safe, respectful, and supportive work environment for their employees.
“Companies with rigid strategies and unsupportive cultures will quickly be found out in the coming months as they will fall prey to the Great Resignation– with so many opportunities out there, workers will simply not stand for it anymore,” says Barsby. “Employers should consider seeking external help if needed to address this problem as no one should be made to feel stuck or undervalued in the workplace.”
The bottom line
The conditions are set in Australia for workers to shop around and quit their jobs for greener pastures.
But while the idea of the Great Resignation may strike fear into the hearts of employers around the country, others can take the proactive approach and solidify their retention strategies.
“There will always be turnover but creating an environment that allows our team to bring their true and best selves to work and that fosters personal and professional development will help to reduce that” says Barsby. “Those are the ones who will avoid the Great Resignation.”
