The Great Resignation

Discussion Paper
The expected impacts and implications for Transport for 2022

People & Culture – November 2020

1
What is “The Great Resignation”?
Context
In late 2020 Anthony Klotz from Texas A&M University coined the term “The Great
Resignation” in response to his observations about growing resignation rates in the US Attrition comparison rates
coupled with a general workforce trend that saw employee rethinking their work-life balance.
Transport 6.75%
By August 2021 the monthly resignation rate in the US had climbed to 2.9% - the highest
ever recorded. NSW Public Sector 1 8.6%

Also earlier this year the 2021 Work Trend Index conducted by Microsoft across 31 National Average 2
15.2%
countries found over 40 percent of the global workforce considering leaving their employer
this year. • “Attrition” includes redundancies as part of Evolution of Transport. Full
impacts of reform are still yet to take effect.
McKinsey had similar results. Surveying five countries (Australia, Canada, Singapore, the
United Kingdom, and the United States) they found a consistent trend – 53% of the • “Voluntary Attrition” excludes separations due to redundancy and so is a
employers said that they are experiencing greater voluntary turnover than they had in better indicator of “The Great Resignation”.
previous years and 40% of employees stated that they are at least somewhat likely to leave • Transport’s Voluntary Attrition is currently 4.7%. Currently there is data
their current job in the next 3–6 months. integrity issues impacting our ability to report on Voluntary attrition
We are not seeing the same trends in Australia …yet
In Australia the rate of workers changing jobs has been
steadily declining for decades. In the year to February 1
PSC: Workforce Profile 2020
2
AHRI: Turnover Report 2018
2021, the proportion of Australia workers moving jobs fell
to an all time low of 7.6%.
Switching jobs 7.6%
Our attrition rate in Transport is even lower – currently
6.75% and is lower than the NSW Public Sector. Proportion of employed Australians who
changes jobs during the year
Although we may not yet have seen the full impact of the
1975 2000 2020
market correction.
Source: ABS
Why are people resigning?
The pandemic has accelerated and existing trend for people expecting more from their work

More than half of desk workers

Most employees halted say flexibility would impact More than 6 in 10
their job search in 2020. their decision to stay at a job1. prospective jobseekers said
Now, with a strong they were primarily
labour market motivated to leave by a lack
employees are confident Demand for of career and
to resume their search1. flexibility compensation growth2.
Market Career
correction development
Higher productivity is
masking an exhausted Employees between 30 and 45 years
Employee Generational old have had the greatest increase in
workforce and burnout
has become the number burnout differences resignation rates3 likely due to
one reason for increased stress, caring demands and
resignation4. career progression
Leadership Meaning of
disconnect work

Employees are feeling Employees now looking for

1
Gartner: “Benchmarking Employee Turnover Trends
and Mitigation Strategies With HR Leaders”
undervalued. People are more likely more meaningful social and 2
Business Insider: “Great Resignation Australia”
to resign before having career interpersonal connections.
3
Harvard Business Review: “Who is driving the Great
Resignation?”
conversations with their leaders1. 4
Microsoft: “Work Trend Index” 2021
Why do people stay?
What the research tells us about why people stay

CULTURE &
CAREER WAYS OF WORKING LEADERSHIP REMUNERATION
ENGAGEMENT

People are looking for People value Flexibility and People want leaders Remuneration and
meaningful careers wellbeing highly2. remote working and organisations that reward number one
and the potential for should be the norm2. make them feel Employer Value
They are looking for a
advancement1. People are placing valued1. Proposition (EVP) lever
sense of belonging
greater value on valued by workers2.
They want investment with a positive work They wanted to feel
work/life balance3.
in their skills atmosphere3. supported during the Remuneration likely to
development2. They want to pandemic3. be exacerbated by
maintain our accelerated labour
networks have time market1.
for innovation2.

Retaining our talent is our greatest opportunity

1
McKinsey: “Great Resignation or the Great Attraction” 2021
2
PWC: “Future of Work” 2021
3
Ranstad: “Employer Brand Research 2021”
PMES data suggests we are in a good position
We have seen improvements in most areas that matter to our people. The
PMES survey results indicate overall intentions to resign have gone down in Comparison
2021. to 2020
Our overall job satisfaction rates have remained
stable and satisfaction with career development and Flexibility
access to flexible work has increased. 71% +4%
Intention to leave Career
Only 7% indicated they intend to leave Transport in
the next 12 months
51% +3%
Job Satisfaction
Transport 7%
71% -1%
Public Sector 8%
Leadership
Australia 1
40% 57% +1%
US 2
40%
Inclusion & Diversity
Percentage of people intending to leave in the next 12 months
82% +2%
1
Business Insider: “Great Resignation Australia”
2
Microsoft: “Work Trend Index” 2021
 Employee burnout is still a high risk
Employee wellbeing is declining

Such unprecedented upheaval has led to 85% of workers reporting their wellbeing had declined through the
various lockdowns1. This impact on their mental health impacts employees focus and motivation to work. Burnout
as currently being the number one reason for resignation 2.
At Transport, we have an added pressure of restructures and potential redundancy, whilst continuing to deliver at a
rapid pace.

PMES and Pulse survey results indicate Intentions to leave peak after 2
employee wellbeing is trending down Excess leave is increasing years of employment
80% 4.5 60%
Jun 19 2020
70% Nov 20 Jul 21 2 < 5 years
4 50% 2021
60%
Jun 21 40%
50% Sept 20 3.5
40% Mar 21 30%
30% 3
Jan 21 20%
20% Mar 20
2.5 10%
10%
PMES Considering a new role: Yes
0% 2 0%

1
Harvard Business review “Beyond Burned Out, Feb 2021
2
Coursea industry skills report 2021
Areas where attrition creates a higher risk
Transport roles with significant skills shortages
National Skills Commission1 provides detailed view on labour shortages and anticipated future demand.
Three fields relevant to Transport are already experiencing significant labour shortages resulting in higher than
average turnover and high labour market risk e.g. high market competition or low supply (skill shortage).
We see this already in our workforce or resource plans typically resulting in lengthy time to fill, high vacancy
rates and high use of labour hire and PSCs.

Number of advertised roles in the labour market increased significantly since June 2020 2

Corporate Services Engineering Technology

4000 3000 9000
3500 8000
Accountants 2500 Software and Application
3000 7000
2000 Electricians 6000 Developers
2500
5000
2000 1500 Civil Engineers 4000
1500 1000 3000
1000 Human Resourcing 2000
500 500
Industrial Engineers 1000
0 0 0

1
National Skills Commission: Skills Priority List 2021
Further information on global and local labour market trends can be found in the Appendix 2
Labour Market Information Portal: Vacancy Report
Where we are on the journey
Organisational Reset
• Evolving Transport has created momentum towards a more Areas of risk
connected and customer-focused organisation.
• I’m Transport connects our people to the value of the role they play
in helping Transport shape NSW. 1. Risk of burnout and change
fatigue through embedding the
new operating model. There is still
progress required to fully realise
Ways of working
new ways of working, hybrid and
• Transport has been quick to promote hybrid working and where we Agile.
can be adaptable.
2. We are still building our
• We have empowered our leaders to lead based on outcomes rather leadership capability in leading
than managing process and activity in a set location or workplace. agile teams and build a culture
that thinks differently about ways
of working.
Supporting Regions
3. The impact of implementing
• Transport commenced work on the Regional Workforce Strategy, COVID Safety Measures may
which has given us a good insight into the challenges and have an as yet unknown impact
opportunities of a decentralised workforce. on attrition.
What we need to do
We have been aware for some time of the growing trend of people reconsidering the role of work in their lives and what they want from their job
and employer. Our people strategy vision of thriving people doing meaningful work speaks to this need for more meaningful careers, greater
autonomy and more enjoyable and engaging work experiences.

We are heading in the right direction and should continue to progress initiatives, and communicate our progress both internally and to the
market, in these areas as a matter of priority:

Development Wellbeing Leadership & culture Flexibility

Career pathing platform
Development and career
conversations
Targeted development for
Future Leaders
Respectful behaviours Leadership and culture Embed and communicate
strategy and roadmap hybrid
Encourage taking leave
Reimagining Performance Regional opportunities
Role clarity
Aligned EVP Frontline/Operational
Work demands
Embedding the operating
model
Targeted actions to mitigate risks

COVID Planning workforce shifts from the implementation of

response COVIDSafe Measures

Talent Develop targeted retention and attraction strategies for

strategy identified high risk areas

Strategic Working with business areas to review current and future

Workforce workforce demands and develop and implement strategies.
planning
Appendix
Global labour market shortage is creating
demand
Surge in demand globally and in Australia Labour shortages are already impacting Transport
• In the United States, the number of job openings surged 33% from for Engineering, Tech and other corporate functions
2019, In Canada, the job vacancy rate hit its highest level since
20151. Engineering occupations
currently in short supply with Early Turnover Intentions: Percentage of employees who intend
• In Australia, in June, 19% of employing businesses reported that to look for a new job with another organization within the next year
strong future demand:
they did not have enough employees compared to 12% in March • Transport engineers IT 22%
2021 and 15% in Dec 20202. • Structural engineers HR 20%
Hospitality 20%
• Electrical engineers
Security 19%
Factors impacting ability to find suitable staff
Creative 19%
Labour supply factors Tech resignations increased Marketing 18%
by 4.5%3. Feedback from Manufactoring 17%
Accounting 17%
Applicants don’t have
International People Partners confirms
border Science 16%
the required skills or
closures
difficulty recruiting IT roles
Sales 16%
Lack of job qualifications 32% including: Admin 16%
applicants • Developers
66% Maintenance 15%
Uncertain External • IT Project Managers Education 14%
74% economic
conditions factors • IT Security Social Services 13%
Type of
employment
22% Operations 13%
Job offered Other corporate functions Health 13%
location 23%
at risk include: Exec 13%
29% Working
Pay days or • Corporate Services Engineering 13%
conditions Other hours Others 12%
18% employment
13% Manager
Job factors conditions
• Accountants Legal 12%
11%
Source: ABS Construction 11%
• Human Resourcing
Source: Gartner Global Labour Market Survey (2Q21)
1
Deloitte Insights: “The Global Labour Market Shortage” 2021 3
Harvard Business Review: “Who is
2
ABS: “Business Conditions and Sentiments” 2021 driving the Great Resignation?”