Find Out Why 1 In 3 Australian Workers Are Resigning

With burnout running rampant and the cost-of-living crisis continuing to effect everyday Aussies, will this start taking a toll on Australian businesses?

According to a recent survey conducted by the National Australian Bank (NAB), a jaw-dropping 24% of Australian workers are planning to resign from their current positions in the upcoming quarter. This marks a significant 3% increase from the previous quarter, indicating a concerning trend for businesses across the country. The survey also revealed that 8% of Aussie workers have already changed careers, and a whopping 1 in 3 have opted for a career change within the last two years alone. These statistics suggest that a significant proportion of the Australian workforce is experiencing a period of unprecedented flux and uncertainty.

But where is this coming from? What are businesses in Australian doing so wrong to cause such a rapid increase of resignation?

As reported by NAB, the cost-of-living crisis and stagnate salaries were the most important factor for resignation for 7 out of 10 workers. Where half of those interviewed reported that stability and flexible working schedules were prominent reasons for resigning.

NAB Group Executive of People and Culture, Susan Ferrier, has commented on this issue in a recent report by NAB News , highlighting the need to prioritise employee wellbeing in the current economic climate:

“As we see pressures of inflation hitting many Australians, I think employee wellbeing will need a very sharp focus. This is a workforce that has just lived through the many challenges of the pandemic,”

But according to a recent report from the University of Melbourne “2023 State Of The Future Of Work” the cracks were starting to appear well before Covid. Professor Leah Ruppanner, a co-author of the study said

“Work wasn’t working for many people pre-pandemic. People want more flexibility in how they work, but that should be moving beyond just ‘working from home’ and ‘working from the office’ – that’s an oversimplification.”

In February 2023, the Australian Bureau of Statistics (ABS) released a report indicating a significant rise in the number of employees leaving their jobs for greener pastures. The report showed a 14,200 increase in the number of workers resigning for “a better job” or “wanting a change,” totalling 343,200 people. This trend was prevalent in several industries, with the utilities sector registering the highest number of workers intending to leave at 44%, followed by manufacturing and agribusiness at 35%, hospitality at 33%, and government at 30%.

For business owners already facing nationwide labour shortages, this is a concerning statistic. The importance of appreciating and empowering employees has never been more crucial. By providing your employees with the flexibility they need to thrive and providing salary increases they deserve, avoiding resignations could be possible.

To find out more about the power of empowering your employees read our latest article.