AIM has released a new report revealing staff retention is a growing concern for businesses.
The 2016 Staff Retention Report found more than half of businesses (54.6 per cent) across Australia were concerned about staff retention, up from 48.8 per cent last year.
The report was based on findings from the National Salary Survey, released earlier this year, which revealed four in five Australians are unhappy at work
It found a high staff turnover could threaten a business, with organisations reporting increased stress, reduced staff morale and loss of corporate intelligence affecting the remaining workforce.
A high staff turnover could also lead to reduced customer service, satisfaction and productivity, in addition to the cost of recruiting and training new staff.
The report found employees were leaving jobs to look for a new challenge, better training and development opportunities, or to seek improved recognition in a role - all of which were more important than financial reward.
AIM Chief Executive Officer, David Pich, said retaining staff was not easy, but there were strategies businesses could consider to reduce their resignation rates.
He encouraged businesses to reassess their current pay models and create a positive and inspiring workplace culture.
“Employees can become restless in roles that have limited career advancements or where they don’t enjoy their time at work,” Mr Pich said.
“To motivate and engage staff, managers and leaders need to understand the motivations of their employees and implement strong tactics to keep valuable team members.”
The most significant decrease in resignation rates in 2016, compared to 2015, were recorded in the wholesale machinery/auto industry (decreasing from 13.9 per cent to 10.6 per cent), while the business and professional services industry recorded the highest resignation rates, at 15.4 per cent.
When broken down by financial turnover, companies with an annual turnover of more than $200 million recorded the most significant decrease in resignation rates – a drop from 13.7 per cent in 2015 to 11.3 per cent in 2016.
Organisations with an annual turnover of $5 million to $10 million, recorded the highest resignation rates in 2016, at 12.6 per cent.
Mr Pich said about a third of our work-age lives were spent doing just that - working.
“It is vital our experiences in the workplace are positive as they impact on our overall well-being and on society as a whole,” he said.
High staff turnover can:
- Be a threat to business in terms of reduced staff morale, loss of corporate intelligence, reduced customer service and the cost of recruiting and training new staff.
- Be addressed through HR strategies like Corporate Social Responsibility (CSR) policies. The report found the average resignation rate is lower in organisations with formal CSR polices.
