Navigating the Post-Great Resignation Landscape

HR in 2025

The aftershocks of the Great Resignation continue to ripple through Australia's employment landscape. While the initial wave of mass resignations during the Covid period has passed, the long-term effects on recruitment, retention, and overall workforce expectations still linger. This evolving environment poses challenges and opportunities for HR professionals as they adjust strategies to suit a changed labour market.

The great resignation: A catalyst for change

The great resignation of the early 2020s saw millions of workers re-evaluate their careers worldwide, with Australia no exception. According to recent surveys, Australia experienced significant job mobility, with 1.1 million workers changing jobs by February 2024, reflecting an 8% mobility rate. Although this rate was lower than the previous year's peak of 9.6%, the demand for new opportunities and flexibility fundamentally reshaped employer-employee dynamics.

By 2025, the conversation has shifted from mass resignations to strategic retention and recruitment. The factors that initially drove employees to leave—such as work-life balance, remote work, and career growth—remain top priorities. With 28% of employees considering switching jobs within the next 12 months, the lessons of the Great Resignation continue to inform HR policies across sectors.

Recruitment and retention strategies for 2025

Despite a cooling labour market in early 2024, recruitment challenges persist for many Australian employers. The Australian HR Institute (AHRI) reports that while recruitment difficulties eased in 2024, they remain a concern for 38% of employers. This decline in recruitment challenges suggests that organisations are adjusting. Still, a shortage of skilled workers puts pressure on HR teams.

Retention strategies have become increasingly important as organisations seek to stabilise their workforces. Flexible working arrangements, learning and development opportunities, and enhanced support for employee well-being are some of the most effective tactics. With nearly 40% of Australian workers returning to the office full-time by 2024, employers must continue to balance in-office work with flexible policies to meet the needs of a workforce that now prioritises autonomy.

The future: preparing for a hybrid workforce

As we look to 2025, the Australian workplace is solidifying into a hybrid model. The push for flexibility, spurred by the pandemic and the Great Resignation, is now an embedded feature of many businesses. The AHRI's reports show that flexible working arrangements remain among the top retention tools, with many organisations continuing to invest in hybrid models.

The integration of AI and automation into recruitment and HR practices will further influence the workplace. AI-powered recruitment tools, such as CV screening and candidate sourcing, are widely used and will become more sophisticated. For HR leaders, staying ahead of these technological changes while ensuring human-centric 

approaches to work culture and employee engagement will be critical to long-term success.

Conclusion

The HR landscape in Australia for 2025 reflects the lessons learned from the Great Resignation. Employee expectations around flexibility, pay, career development, and culture will continue to shape recruitment and retention strategies. Organisations that adapt to these expectations while leveraging new technologies and maintaining a focus on employee well-being will be best positioned to thrive in this new era.

Sources

1. AHRI Work Outlook Report 2024
2. https://www.abs.gov.au/statistics/labour/jobs/job-mobility/latest-release#:~:text=1.1%20million%20people%20changed%20jobs,the%20year%20ending%20February%202023
3. https://thesector.com.au/2024/06/13/three-quarters-of-australian-workers-think-now-is-a-good-time-to-change-jobs-this-is-what-managers-can-do-better-to-keep-them/#:~:text=This%20resulted%20in%20better%20employee,than%20triple%20the%20global%20average
4. https://ia.acs.org.au/article/2024/39--of-workers-would-quit-if-flexible-working-axed.html#:~:text=%E2%80%9CWhile%20it%27s%20difficult%20to%20predict,20%20per%20cent%20in%202023
5. https://www.linkedin.com/pulse/great-resignation-australia-passing-fad-career365-0amic/
   

Disclaimer

The information provided in this article does not constitute advice. The information is of a general nature only and does not take into account your individual financial situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.