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Highlights
- NAB study reveals that one among five Aussies have changed jobs in the last 12 months.
- The research says that job turnover was highest for general unskilled workers, followed by labourers and other IT and technology workers.
- Strong labour market recovery has given people confidence that they will find a new job if they quit the current one.
Since the onset of COVID-19 pandemic, we have become quite familiar with terms such as layoffs, retrenchments, Great Resignation, job change and a lot more. It would not be wrong to say that COVID-19 has thrown unprecedented challenges towards us and has accustomed us to new normal in our daily lives.
According to a latest study by National Australia Bank (NAB) one among five Australians have changed jobs in the last 12 months following decades of low employee turnover, while almost a quarter is considering leaving their current positions.
Julie Rynski, Executive for NAB Business Bank, is of the opinion that most of the Australians who are considering job change are also looking for a new start, with almost three in 10 planning to change the industry.
As per NAB study, research job turnover was highest for general unskilled workers, with almost 37% suggesting they had changed jobs in the last year, followed by labourers (29%) and other IT and technology workers (28%).
Reasons behind job change:
While there are numerous factors why people are quitting their jobs; however, the main among them is the extra work, especially among frontline 'essential’ workers and a strong rebound in the labour market. The rebound in the labour market has instilled confidence in people that they will get a new job if they leave the current one.
Other reasons which have motivated people to go for a job change include:
- Dearth of personal fulfilment or purpose.
- Lack of career growth.
- Impact of current job on mental health
- Poor pay and benefits.
Besides, poor work-life balance, burnout, and a new start are also crucial factors why people leave their current jobs.
It is to be noted that NAB's study into resignations comes following bizarre low levels of employee turnover in Australia. The most recent data for the year to February 2021 indicates that the country witnessed the lowest employee turnover since the Australian Bureau of Statistics (ABS) began tracking labour mobility in 1972.
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What is Great Resignation?
In 2020, resignation rates plummeted across the US in the wake of fear and uncertainty due to the Coronavirus pandemic. A year later, as the employees faced a collective burnout, people quit their jobs at unprecedented levels, giving birth to the term popularly known as the Great Resignation.
The US Bureau of Labour Statistics revealed that a record number of 4.5 million Americans voluntarily left their jobs in November last year.
Simply speaking, the practice of rising resignations worldwide since 2021, especially in the US, is referred to as the 'Great Resignation'.
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What is the remedy?
In current times, several companies have recognised the importance of keeping their workforce intact. Companies are considering offering their employees better salaries and additional benefits to have an edge over others and hiring the best talents. Recently, Amazon announced that it would more than double the maximum base salary of its employees to US$350,000.
A recent report by the Conference Board revealed that the share of job postings mentioning a starting or sign-on bonus more than doubled between the start of the pandemic (March 2020) and October 2021.
