24-02-2025
Aussie bosses warned over 'ticking time bomb' in workplaces: 'Fuse is already lit'
Australian bosses are being warned that the Reserve Bank of Australia's (RBA) decision to cut interest rates could create a wave of resignations. HR tech firm HiBob has found a shocking number of Aussies prepared to leave their jobs the second there are signs that the economy is improving.
While the job market has been tight in the last few years, it's hoped that the RBA's move to reduce the official cash rate to 4.10 per cent could grease the wheels and get the economy moving. But HiBob's Damien Andreasen told Yahoo Finance that this would have an unintended consequence.
"For a lot of Australian employees right now, job stability isn't about loyalty, but survival. When interest rates are high, the cost of living squeezes household budgets, and people are less inclined to take risks," he said.
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"However, interest rate cuts signal stronger economic confidence.
"If people feel a little less financial pressure, they're far more likely to re-evaluate their options and look for jobs that offer better pay and growth, or simply a better work-life balance."
HiBob found that 43 per cent of Aussie workers are ready to pull the pin on their current roles as many feel undervalued, under-recognised, and lacking clear career paths."Businesses shouldn't mistake this short-term stability for long-term commitment, because once their financial conditions shift, talent exodus is inevitable," Andreasen said.
"The fuse is already lit; people are just waiting for the right moment to move.
"Regardless of when we start seeing this exodus, the window to act is closing fast as the sentiment to change jobs is already here. If companies don't step up now, they'll be left scrambling to fill vacancies while their competitors snap up top talent."
Andreasen urged businesses to start showing their staff how much they care about them.
But he warned that you can't just throw money at the problem - although that can't hurt.
"Salary alone won't keep people if they feel stuck at work," he said.
"Employees want to see a future for themselves if they were to keep their position long-term, which means clearer career pathways, meaningful feedback and real recognition.
"If companies continue to link career growth to overtime or assume people will stick around just because times are tough, they're, frankly, delusional — and will be blindsided when their best talent walks out the door."
He said the best course of action is to sit down with staff and ask them what's missing in their day-to-day lives and work out how to fulfil that.
There is a big debate about how long workers will be able to continue enjoying work-from-home (WFH) arrangements.
There has been a wave of big companies like Coles, Woolworths, Amazon and the public sector ordering staff back to the office.
Some believe this trend will continue in 2025, while others feel it will hit a watershed moment.
"I'm predicting that if the market starts to pick up and recruitment picks up, those top performers that are being forced to go back to the office have a choice, and I suspect we'll see an increase in resignations," Natasha Hawker, managing director for HR and recruitment company Employee Matters, told Yahoo Finance.
"We recruit across multiple industries, and I have to say, from a candidate perspective, they do not want to return to the office."
Randstad Australia found that 52 per cent of white-collar workers now view WFH as a fundamental right and fear it is being unjustifiably taken away.
The research also discovered that 24 per cent of Aussies would actively search for a new hybrid role if they had to go back to the office full-time, while 6 per cent would resign without another job lined up.
