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Earlier this week, the Reserve Bank decided to cut interest rates for the first time since November 2020. This is good news for mortgage holders and businesses nationwide – but new research has revealed that many Aussie workers are poised for a mass exodus if their employers fail to address key issues.
After heavy anticipation, the board of the Reserve Bank of Australia has decided to cut the cash rate by 25 basis points, from 4.35 per cent to 4.1 per cent. In a recent statement, the board said: “Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance.
“In the December quarter, underlying inflation was 3.2 per cent, which suggests inflationary pressures are easing a little more quickly than expected. There has also been continued subdued growth in private demand, and wage pressures have eased.
“These factors give the board more confidence that inflation is moving sustainably towards the midpoint of the 2–3 per cent target range.”
Findings from HiBob have discovered that as the economy begins to heal, nearly half of Australian workers (43 per cent) are ready to jump ship. According to the data, while three in four (74 per cent) plan to remain with their current employment – half are doing so due to the current economic situation rather than the genuine happiness of their work.
“Australian businesses are sitting on a talent time bomb. While employees may appear content now, they’re biding their time until the economy improves. But when that happens, it won’t necessarily be good news for employers,” said Damien Andreasen, vice president of APJ at HiBob.
According to Andreasen, the research uncovers a growing disconnect between employees and employers.
“Unless companies proactively address the underlying drivers of dissatisfaction – from a disconnect between hard work and actual career progression to poor guidance and feedback – a mass exodus is inevitable. The moment employees feel empowered to move – they will, leaving businesses scrambling to replace critical talent,” said Andreasen.
A focal point for the disconnect between workers and employers is between the aspirations of employees and the lack of support from employers. For employees, career progression is a top priority – yet many feel unsupported, with only half (52 per cent) receiving meaningful feedback in their last performance review.
Despite the relief surrounding the RBA news, employers may soon be faced with a wide array of challenges based on their own lack of action. The data shows that more than one in three (36 per cent) Aussies have seriously considered starting their own business in the last year – yearning for better control over their careers compared to their current situation.
“Australian workers have spoken. They’re stuck in career limbo, waiting for the right moment to move. Businesses that listen and respond to their call for clear career paths, meaningful feedback and improved work/life balance will proactively shape the inevitable talent shift instead of scrambling to react when it’s too late,” said Andreasen.
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
