Employee

movement and
retention report
September 2021
1 | Employee Movement and Retention Report
Contents
Introduction 5

Part One: Retention 6

Prepare for movement on a massive scale 9

What are the main reasons for job-seeking? 10

Out of Office: Working Overseas 12

What could encourage staff to stay? 15

Small budgets. Big impacts. 16

Are you people-first? 17

Part Two: Recruitment 18

Great (but achievable) expectations 20

An EVP is key 22

Embrace the side-steppers 24

Become a master of recruitment 27

Whether you’re recruiting or retaining, hear this. 28

Survey Demographics and Methodology 30

About Employment Hero 32

Disclaimer

The information in this report is relevant as at 21 September 2021, and has been prepared by Employment
Hero Pty Ltd ABN (11 160 047 709) (Employment Hero). The views expressed herein are general
information only and are provided in good faith to assist employers and their employees. The Information
is based on data supplied by third parties. While such data is believed to be accurate, it has not been
independently verified and no warranties are given that it is complete, accurate, up to date or fit for the
purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy
in such data. To the maximum extent permitted by law, Employment Hero will not be liable to any party
in contract, tort (including for negligence) or otherwise for any loss or damage arising either directly
or indirectly as a result of reliance on, use of or inability to use any information provided in this report.
Where liability cannot be excluded by law then, to the extent permissible by law, liability is limited
to
2 |the resupply
Employee of the information
Movement or the
and Retention reasonable cost of having the information re-supplied.
Report
 Introduction
Have you heard about the
‘Great Resignation’?
It’s a recent buzz term that’s got a lot
of people feeling excited or concerned,
depending on what perspective you’re
looking at it from. The phrase comes
from the World Economic Forum and
their shocking statistic; 41% of employees
worldwide plan to leave their jobs this
year. This isn’t only totally unprecedented,
for many employers and HR managers,
it’s beyond comprehension.
While Europe and the US are starting to
see the shock waves of mass turnover
already, Australia’s somewhat delayed
experience due to the Delta variant,
means that our movement hasn’t started
yet. But be warned – it’s coming.
Innovation expert at Gartner, Aaron
McEwan suggests that, based on current
trends, we have about six months to
prepare for the mass movement. “When
we hit March in 2022, we will see the
great resignation in Australia,” he told
the ABC. “It will be a movement of talent
that I think we are unprepared for.”
What’s fuelling this incoming exodus?
On a macro level, we can assume there
has been a shift in thinking due to the
pandemic, or there will be movement
once border restrictions are eased. But
we’re not half as interested in assumptions
as we are in practical, helpful advice for
small to medium-sized businesses.
4 | Employee Movement and Retention Report
That’s why we surveyed 1,000 workers
from around Australia between the 30th
of August and the 7th of September, 2021.
We asked them about their plans for job
movement, their career objectives, what
would attract them to a business, what
would make them stay in their current
role, and so much more. It’s a complete
snapshot of the current talent sentiment,
split into key risk and opportunity groups.
Employers know that their people are
everything to their business. Without a
great, stable team, it’s impossible to achieve
success. That’s why it’s Employment Hero’s
mission to make employment easier and
more rewarding for everyone. If employment
is fulfilling and inspiring, you attract and
retain the best the world has to offer.
If you’re going to build the teams you
want, now is the time to get organised.
Whether you’re looking to retain your
current staff or recruit new team members,
get ready for the Great Resignation.
Armed with these essential insights, you
can put in the groundwork now to make
sure that this major event works for you.
Wishing you and your team all the best,
Ben Thompson
CEO & Founder of Employment Hero
Part 1:
Retention
Retention should always be a key priority
for employers. A high turnover rate is not
only damaging to a business’ bottom line,
it can also be representative of a wider
discontent within. Consistent turnover
can conceal low levels of employee
engagement, a toxic work environment
or an issue with management.

In terms of cost to a business, the

Work Institute suggests that the cost of
an employee’s turnover is about 33% of
their annual salary. Along with productivity
costs, time spent to fill the role and training
periods for the new employee; it all adds up.

To reduce turnover, we want to optimise our

employees’ work experience. We want them
to feel valued and appreciated. If they are
feeling satisfied within their roles, they’re
less likely to seek fulfilment elsewhere.

So let’s take a lay of the land.

How concerned do we have to be
about employee movement?

6 | Employee Movement and Retention Report

Prepare for movement
on a massive scale
To be honest, we should be very concerned.
An unprecedented 48% of workers are
Do you plan on looking for a new role? planning on looking for a new role, within
or outside their organisation in the next
year. What’s even more concerning is
that 40% - the vast majority - of these
of workers plan on looking for of workers are not currently
a new role within the next year planning on looking for a new role are planning on looking in the next six
months. 15% are looking right now.
Of those who are not currently looking to
move roles, 77% said that was because they
Our older generations are more likely
to want to stay put at least for the next
12 months, with 77% of those aged 55+
saying they had no plans to move roles.
Unhappy at the top
You don’t often see big shifts at senior
levels of a business. But, when this does
occur, it can be extremely difficult to
find someone of the same standing and

48%
I am looking for
a new role now
I will be looking for a role
in the next 3 months
I will be looking for a role
in the next 6 months
I will be looking for a role
in the next year 9%
8%
I will be looking for a role in
the next 2 years 10%
52%
were happy where they are. 20%, however,
said that it was because they believe it
is risky to try and change jobs right now
due to uncertainty from the pandemic. As
lockdowns and restrictions continue to lift
over the next few months, they’re likely to
join the pool of job seekers.
15% There are some clearly defined groups that
seem more ready to jump ship than others.
13% The age of discontent
Younger people seem to be more ready to
12% move on from their current workplaces, with
large numbers of movement possible for
people under the age of 45. 66% of those
aged 18-24 were planning on changing roles
within the year, as are 64% of those aged
25-34, and 56% of those aged 34-44.
capability to replace them. It’s cause for
concern, then, that 55% of managers and
senior executives are intending to move
within the next 12 months. Professional or
non-manager employees were less likely.
The state of dissatisfaction
Yes, we have one highly unsatisfied state
among us! Employees in Victoria are 14%
more likely than other states to want to
change roles within the year. As the state
most severely impacted by Covid-19
restrictions - with well over 200 days
spent in lockdown - this could have had
an influence over a sense of discontent.

Those in a younger age bracket were

I do not plan on looking
for a new role 42% also likely to be more active in their
job search; 38% of 18-24 year olds and
35% of 25-34 year olds have spoken
to a recruiter in the last 6 months.

8 | Employee Movement and Retention Report

What are the main reasons
for job-seeking?

What are your top three reasons for seeking

a new role in a different organisation?

Lack of career
opportunities
31%
No pay rise
30%
Lack of appreciation
or recognition
26%

Of those who wanted to leave their Culture and Company

organisation, we asked them to identify the
Top 3 reasons that fuelled their discontent. Poor company culture was the fourth most
The top reason overall was a lack of career common overall reason that people cited
at 21%. Employees of large businesses (with
opportunities, with 31% selecting this.
over 200 employees), were 49% more likely
Generational Divides to select this. It was also common amongst
government employees who were 98%
For our younger respondents, it seems there more likely to state this as their top reason.
may not be enough opportunities on offer to
get them excited about their future careers
with an organisation. Those aged 25-34
were 26% more likely to select ‘lack of career
opportunities’ as their top reason. ‘Lack of
appreciation or recognition’, on the other
hand, was most common in the 45-54 age
group with 39% of respondents within this
age group choosing this as their top reason.

10 | Employee Movement and Retention Report

Out of office
It’s common knowledge that Aussies love
to travel, and we’ve been absolutely starved
of it for the last two years. For employers,
this could not only cause a massive rush
of holiday leave requests, it could also see
your team make up for lost travel time
by seeking international employment.
A whopping 2 in 5 of Australian workers
would consider taking a job overseas,
with the big motivator being to travel.
12 | Employee Movement and Retention Report
While it’s not applicable for every
role or industry, the remote working Are you considering/would you consider
revolution that’s been fuelled by seeking a job overseas?
the pandemic could be significantly
helpful here. Remote working is
Yes No
not only incredibly beneficial for
Australian-based employees.
Our 2021 Remote Working Report
42% 58%
found that 91% of us want to work
remotely at least one day a week
on a permanent basis, and this can
help to retain those employees who
want to take a working holiday.
For long-term international
employment, consider using a service
like Global Teams. We take the hard If yes, why are you considering a job overseas?
work out of local employment and
compliance in over 54 countries.
I want to travel 46%
I feel there are better
opportunities overseas
29%
I’m bored with my
current location 28%
I could earn
more overseas
25%
I want to move with
my spouse/partner 24%
 What else could encourage
job-seekers to stay?

Which of the following initiatives would encourage

you to stay in your current role?

A salary increase 47%

A promotion 25%
More rewards
and recognition 22%
More training and
development 21%
A bonus, or the
introduction of 20%
a bonus structure

A change of management 19%

Introduction of more
flexible working options
e.g. flexible location or hours
19%

Respondents chose 3 options

While we can work to remedy why Lacklustre managers, be warned. In the

our employees want to leave our
workplaces, what initiatives would
encourage them to stay? Unsurprisingly,
a salary increase is at the top of the
list. But money isn’t the whole story.
high-stress context of the pandemic, some
managers came to the table with employee
understanding and care, but some fell
short under pressure. This is especially
true for our respondents working for large
companies, who were 30% more likely to
select ‘a change of management’ as the
leading initiative to stay in their current role.

14 | Employee Movement and Retention Report

Small budgets. Big impacts.
If you can afford to give your workers a
salary increase but have been holding out
for whatever reason, now is the time to
take action. Handing out significant pay
rises, however, is not always feasible for
business owners. This is especially true for
small to medium-sized business owners.
In this environment of employee choice,
employers need to pivot their thinking to be
people-first. The good news is that you can
do this on a dime. Let’s talk budget-friendly
versions of our top retention initiatives.
The power of small tokens
Riddle us this, would you rather have a
small salary increase or nothing at all?
There comes a time of year when everyone
is expecting salary reviews, it’s not ideal to
have nothing to offer your team; especially
your high-performing team members.
Take stock of your finances, is there
anything that you could offer your staff? If
it’s possible to reallocate a small amount
of funds from elsewhere in the business
to bolster your team’s salaries, it’s worth
considering. Small salary increases might
be preferable to spending cash on a lavish
Christmas party or waiting to do larger
salary top-ups next year. Small wins can
keep your team motivated and feeling loyal.
16 | Employee Movement and Retention Report
As we mentioned before, the cost of
turnover is generally high for businesses.
Better to shuffle funds now to stay in
line with industry standards than to
cop the costs later. This is especially
true for the 30% of workers whose
pay has not been reinstated after
receiving a pandemic pay-cut.
A pathway to greatness
Most people want a promotion, but you
may not currently have the means or
structure available to warrant this.
Instead of promising a promotion at an
unspecified later date, set up a career
development pathway for your staff. Work
with them to make a plan for where they
would like their career to go and outline
how you can help them get there; whether
that be with additional training, internal
mentorship or a change of responsibilities.
28% of workers currently feel that their
next step is within a different industry to
what they’re in now. For many, this also
means moving to another organisation.
But that doesn’t necessarily have to be
the case. It may be possible for you to
help your staff member pivot to a new
role within your organisation. Be open
to these kinds of conversations.
Doing this will take investment from
managers, but it is well worth it in helping
your employees visualise a future for
themselves within your business.
A rewarding experience
Appreciation and recognition doesn’t
have to come in the form of large bonuses
or frequent promotions; small shows of
appreciation can be powerful. In fact, you
may find that your team actually benefits
more from regular reinforcement, rather
than waiting for yearly monetary displays.
Remember, 26% of people who were
seeking new roles were doing so because
they felt underappreciated. If you don’t
have a culture of recognition at your
workplace, this should be high on your
agenda over the next critical six months.
Our tip
In Employment Hero, your team
can use our ‘Shout-Outs’ feature to
highlight each other’s achievements.
You can also use our ‘Recognition’
feature to reward your staff with small
payments of ‘HeroDollars’ which
they can spend on everyday items.
Are you people first?
It’s a big question, especially in a year
that has demanded business owners
be so focused on just staying afloat.
But it’s important to note that as we
enter this time of growth and recovery,
it’s critical to keep our people on-side.
While there will always be employee
movement within your business, a large
turnover hit could have a serious impact
on your businesses operations.
Our employees have worked so hard
throughout the pandemic, and they have
experienced the same uncertainty, stress
and unease as business owners. The
anxiety around job security, however, is
falling away. Employees are aware that job
vacancies are growing as the economy
strengthens once again and that more
choice is becoming available to them.
The pandemic has been a miserable
time for many, but it has also created a
shift in thinking. Employees are asking
themselves some big questions right
now; Do we live to work? Do we want to
go to the office every day? Do we feel
appreciated for our hard work and loyalty?
Would we be happier elsewhere?
Part 2:
Recruitment
Recruitment! It can be one of the most
difficult things on an employer’s to-
do list, but it can also be the most
rewarding. Whether you love it or hate
it, getting talent acquisition right is
critical to achieving business success.

As we mentioned in our retention section;

almost half of employees are looking
to take on a new role in the next year.
If you’re trying to retain staff, this is a
chilling statistic. But if you’re trying to
recruit, it’s one hell of an opportunity.

If you’re looking to grow quickly following

the pandemic - and wouldn’t it be nice
to return with a bang - start getting
prepared now! You have six months before
Australia’s projected ‘Great Resignation’
to plan your ‘Great Recruitment Rush’.

18 | Employee Movement and Retention Report

Great (but achievable) expectations
So what do those who are seeking, or those Victorian employees, who we earlier
open to the right offer, want from their identified as one of our most active job-
next role? We’ve asked the tricky questions seeking groups, were most likely to expect What are your pay expectations for your next role?
so you don’t have to. As there’s nothing a 20% pay increase - with 31% in the state
more taboo than money, let’s start there. selecting this. Those located in NSW and
the ACT were 41% more likely to expect
Desire for a big salary jump was mostly
On par with
my current role 21%
a 30% or more pay increase - feeling the
aligned with age. 18-24 year olds
housing market or lifestyle pinch perhaps?
were most likely to be satisfied with a 10% pay increase 34%
10% pay increase for a new position, But it’s not all about the money for job
whereas those aged 35-44 were most seekers and switchers. When thinking 20% pay increase 23%
likely to want a 30% pay increase. about their next role, the prospect of
doing a job that they find enjoyable 30% pay increase 10%
trumps salary for Australian employees.
40% or more
pay increase 5%
I am moving
industries so I expect 6%
my pay to decrease

Thinking about your next role, what are your top

priorities if you were to look for another job?

It’s a job that I enjoy/

something that I like doing 41%
A salary increase 39%
The company offers flexible
working options; e.g.
flexible location and hours
28%
The work location is
close to home, there’s
easy commuting
28%
A company with a
good culture/friendly 24%
people/has social events

A company that rewards/

recognises its people 24%

20 | Employee Movement and Retention Report

 An EVP is key
You can use these insights around
priorities to boost your Employer
Value Proposition (EVP).
An EVP is your most valuable tool when it
comes to attracting staff. It clearly defines
and promotes why your company is so
great to work for. It can capture culture,
benefits and workplace vibe. It can be
communicated via your company’s website,
job advertisements, social media content,
and through your teams that are interacting
with candidates. A compelling EVP will set
you apart from your hiring competitors.
So we know that people are looking to
move into something that they enjoy and
that they will find fulfilling. Could you
create an incentive for your employees to
share their experience of work satisfaction
to their LinkedIn networks? In your job
advertisements, could you speak more
to an innovative and excited spirit that
your company brings to an industry?
We know that flexible options are going to
be a part of working futures. The pandemic
has made employers realise that remote
working is not just a viable option, it can
often boost productivity and improve
employee work/life balance (outside of
forced lockdowns, of course). It should
be no surprise that 28% of workers are
seeking this benefit, and a further 28% want
to work somewhere that’s convenient for
them if they do have to attend the office.
22 | Employee Movement and Retention Report
Put yourself in the position of a job-
switching dad who’s been offered positions
at two growing tech businesses. Both What could other employers offer to encourage
are leaders in the space and both are you to consider a role at their organisation?
offering his desired salary. One, however,
demands that their workforce attend the
45%
office everyday; he’ll have to spend over
an hour a day commuting, he won’t be A salary increase
able to do the school pick up and drop off,
and he’ll lose valuable time with his family.
28%
But if he chooses the company that offers
Flexible working options e.g.
flexible working, the opposite is true; he
flexible location or hours
will spend less time commuting, and he
will be able to spend more time with family
and at home. Which would you choose?
24%
Monetary bonuses
Currently 38% of employees stated that or rewards
their organisation offers flexible working
as an additional perk. Companies who do
not adjust to this risk being left behind
in a job-seekers market. Of course,
Rewards and recognition
programs for its people 21%
workers understand that not every
industry can facilitate remote working,
21%
but if you can find a way to share that
A permanent
you respect workers’ personal lives and employment contract
time - this will be an asset to you.
Our tip
How does HR work in a remote working world? It’s simple with the right tools. Employment
Hero can take care of the entire flexible employee experience. From remote onboarding
to feedback, paperless policies and digital timesheets. Our cloud-based platform makes
flexible working not only easy, but rewarding for employers and their employees.
How about capturing those who may not be completely ready to make the jump to a new
business? If you’re ‘cold’ reaching out to great talent that you’d like on your team, you may
need to entice them to give the offer proper consideration. Again, after salary, flexible
working is the hero of workplace benefits.
Embrace the side-steppers
It’s been estimated that the current
generation entering the workforce
will experience about five different
career changes in their lifetimes. It’s
now truly the norm to ‘pivot’ between
industries, and smart employers
will see this as an opportunity.
Our survey found that almost a third of
Australian workers would like their next
role to be in a different organisation,
but also a different industry.
Why is this happening? We can hypothesize
that the pandemic has shaken up
our priorities. Time away from hustle
environments has made us rethink our
priorities and our life’s goals. We’ve had
more time to explore our hobbies and
interests, and may now be considering
these as an alternative career path.
Whatever the reason may be, we’re seeing
more career mobility than ever before. So
how can we capitalise on this growing trend?
When you’re recruiting, be conscious of
transferable skills. Even though the person
may have no demonstrable experience in
what you’re hiring for, they may have abilities
and attributes that are perfect for the role.
Some highly desirable, cross-industry skills
include communication, analytical reasoning,
creative thinking and problem solving.
24 | Employee Movement and Retention Report
We understand that it can be intimidating
to hire someone outside your usual
applicant pool. To get a greater gauge
of this person’s skills in your business’
What are your intentions for your next role?
context, consider setting a small
recruitment task to confirm that they have
an understanding of what’s required.
When you compare the costs of
29%
I would like my next
role to be in my current
additional training vs. lost productivity, organisation
it can be much more cost effective to (e.g. a promotion
or lateral move)
42%
get someone in the role and then invest
in upskilling. The alternative to this is a
costly and lengthy process where you
I would like my next
could be waiting months for someone role to be in a similar
industry, but a
who perfectly fulfills every criteria.
different organisation
We would also suggest applying this logic to
people that are already in your organisation.
28%
If they have the interest in jumping across
departments, upskilling them is a fantastic
alternative to looking for someone new or
I would like my next
worst case, losing them to another company. role to be in a different
organisation and a
different industry
Become a master of recruitment
We’re about to enter a golden moment
of opportunity for recruiters - but that
doesn’t necessarily mean that it will be
easy to get great talent on your team.
Along with the updates, desires of
job seekers and switchers, possible
candidates are looking for the recruitment
experience to be top notch. There’s no
point boosting your EVP, refreshing your
employee benefits and opening your
team to side-steppers if your candidate
experience isn’t up to scratch.
Employment Hero’s ATS keeps
you covered with;
→ Integrations with the world’s
most popular job boards
→ Candidate shortlist management
→ An easy-to-use candidate journey
→ Digital contracts for remote hiring
→ Quick transitions into onboarding
→ Much more!
Don’t let your recruitment efforts fall
into disarray. Implement your ATS
before the predicted hiring boom to
easily keep track of incoming staff.

A lack of organisation and poor

communication are common deterrents
for possible candidates during a
recruitment process. It pays to make this
process as transparent and streamlined
as possible for everyone involved.

Our solution? Use an applicant tracking

system (ATS), your best friend in hiring.
Employment Hero’s applicant tracking
system automates and streamlines hiring
so that you can create a recruitment
process that will be sure to impress.
Whether you’re recruiting
or retaining, hear this.
Modern businesses don’t fall into one
of two statuses; recruiting or retaining.
We know that this is a dual state that
employers often find themselves in.
There’s no point focusing on recruitment
if you’re not also considering retention, or
vice versa. The two aren’t mutually exclusive.
The better your retention strategy, the
stronger your EVP will be, the easier it will
be to sell your business to great talent.
Turn your attention back to growth, but
with a people-centric perspective. If
people fuel your business, how can you
keep and find the best people who will be
invested in seeing your business scale? It
takes time, effort and consideration, but
the more you invest in your employees,
the more you invest in your business.
We wish you, and your teams, the best of
luck in this new phase of employment.

After the relentless hits of the pandemic, we

know that business owners want to get out
of lockdown and return their focus growth.
But the findings from this report, and the
projections of the ‘Great Resignation’,
suggest taking a different approach.

Pushing for growth while experiencing high

turnover can be disastrous. As retention
drops, pressure intensifies, triggering
more turnover. It can be a vicious cycle,
and it can cost a business thousands.

28 | Employee Movement and Retention Report

Survey Demographics
and Methodology
Methodology

The findings in this report have 18-24 14%

PROFESSIONAL SENIORITY
been determined from a survey

OF RESPONDENTS
organised by Employment Hero.

The 7 minute online quantitative survey was 25-34 21%

AGE OF RESPONDENTS
deployed using the Glow Survey platform,
and survey responses were collected from
the national research panel Dynata.
39% 20% 41%
35-44 21%
To complete the survey respondents A professional,
non-manager employee
An entry level /
junior employee
A manager/
senior executive

had to be employed in any capacity (full

time, part time, casual or freelance) and 45-54 20%
not own the business they worked in.
RESPONDENTS ARE EMPLOYED BY

The survey was deployed using nationally

25%
ORGANISATION SIZE THAT

55+
representative quotas for age, gender and
location, but no active quotas were placed
on the number of completed surveys.

The survey was in field between the 30th of

August 2021 and the 3rd of September 2021. NSW
& ACT
31%
14% 18% 23% 45%
30%
Micro businesses Small businesses Medium businesses Large businesses

Demographics
(2-9 employees) (10-30 employees) (31-200 employees) (201+ employees)
VIC

LOCATION OF RESPONDENTS
1% unspecified 7% casual/freelance
QLD 19%
WORK STATUS OF RESPONDENTS

8%
GENDER OF RESPONDENTS

SA

WA 8%
48% 51% 30% 63%
male female part-time full-time
TAS 3%

NT 1%

30 | Employee Movement and Retention Report

About
Employment Hero
Employment Hero is the smarter way to
manage people, payroll and productivity
for SMEs with big ambitions.
Employment Hero empowers SMEs by
providing automated solutions to help
launch them on the path to success by
powering more productivity every day.
Employment Hero services over 6,000
businesses, collectively managing over
250,000 employees. The core platform
reduces admin time by up to 80 per cent.
Employment Hero is launching
employers toward their goals, powering
more productive teams and taking
employment to rewarding new heights.

Our features include:

Recognition Shout Outs (Peer to peer recognition) Policy templates

Letter templates Applicant tracking system Employee happiness scores

Feedback 1:1s Performance reviews Learning management system (LMS)

OKRs (Objectives and Key Results) Custom surveys And so much more…

For more information

on how we can help
transform your business
book a demo today.
32 | Employee Movement and Rentention Report
WORK
EASY
The smarter
way to manage
people, payroll
and productivity.
For SMEs with
big ambitions.

Book a demo with one of our business specialists.

34 | Employee Movement and Retention Report