Small and midsize businesses in Australia are displaying optimism in growth amidst the overwhelming impact of the pandemic and the Great Resignation phenomenon.
SAP, in partnership with independent research services provider Dynata Research, has released a study on the impact of the Great Resignation on SMEs in the Asia Pacific and Japan and their strategies to thrive in the post-pandemic world. The report involved key decision-makers or influencers in strategic organizational decisions and technology deployments across eight key countries–Australia, New Zealand, Singapore, Thailand, Indonesia, Japan, India, and Korea.
More than two years into the pandemic, Australian (66%) SMEs/SMBs emerged as one of the most optimistic countries surveyed, stating they have been resilient during these years, weathering the impact of the pandemic and adapting to the new world of work. Despite the pressing workforce challenges spurred by the Great Resignation, the business outlook of SMEs in the country remains upbeat with 84% of respondents forecasting the growth over the next 12 months, with 89% qualifying that the growth forecast will be driven by businesses’ digital transformation strategies.
“Our small and medium-sized businesses are a bellwether for the wider economy, as the nation’s biggest employer. I firmly believe that when SMBs thrive, economies grow, and Australia prospers”, explained Sofiane Ainine, SMB Segment Lead, SAP Australia. “By harnessing this optimism and putting it together with great innovation, a commitment to talent, and a strong partner ecosystem we can chart a course to the next decade of SMB success in Australia.”
Businesses in Australia Weathering the Great Resignation
COVID-19 has revealed unprecedented vulnerabilities not only in the healthcare sector but in almost industries worldwide, including SMEs. Aside from extensively disrupting the global economy, the pandemic egged the Great Resignation phenomenon, also called the Big Quit or the Great Reshuffle, which was first witnessed in the United States in 2021.
According to SAP research, the huge wave of quitting their jobs across industries goes far beyond challenges in talent recruitment and retention. This phenomenon poses long-term impacts on the success of SMEs’ digital transformation and business growth, which are driven by highly-skilled professionals that are hard to replace.
In Australia, 94% of SMEs expressed that the key to their survival over the next year is a robust digital transformation (DX) plan. However, with 48% of the respondents witnessing a marked increase in employee resignations versus 12 months ago and 57% having difficulty coping with the Great Resignation effect, accelerating DX becomes a critical challenge.
Ainine emphasized that the Great Resignation can be seen as an existential threat to many organizations based on the result of the SAP study. He detailed:
“Digital transformation is a fundamental way SMBs not only build resilience but how they create agile, innovative paths to growth. But without the right people, any transformation will struggle. Investment in talent must match investment in innovation to ensure SMBs in Australia both survive – and thrive.”
Investing in Talent Transformation
Recognizing the urgent need to cushion the continuing effect of the Great Resignation, small and midsize businesses in Australia are investing in their workforce by:
- 45% will focus on introducing flexible working arrangements and 39% on improving financial incentives (39%) to boost talent retention
- 36% intend to provide upskilling opportunities to retain key talent
- Of the 55% that acknowledged the urgent need to upskill talent to support DX, 82% will focus on digital training
According to Ainine, the Great Resignation is not just about the narrative of employees pursuing their purpose elsewhere. He said:
“Talent requires the right remuneration, flexibility, and a clearly communicated progression journey. Prioritizing upskilling and career progression, and supporting it with access to the right technology and partners is proven to be a win-win for employees and for SMBs here in Australia.”
In the report, Paul Marriott, President Asia Pacific and Japan, SAP, stressed:
“What we’ve found is a startling focus on training to bolster digital skills for the future – you might call it a Great Education to counter the Great Resignation.”
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