At HR Assured, we understand the difficulties associated with staff retention. We appreciate the strain businesses like yours are put under when key employees resign and you’re left to not only fill an empty desk in the office, but also fill the knowledge gap.
Gone are the days when employees work for the same employer in the same role for a number of years. The current Australian employment landscape sees staff retention rates dropping, with employees chopping and changing roles to suit their lifestyle and career aspirations. In the last financial year, some industries reported staff turnover rates as higher as 40%.
It is widely accepted that tenured employees are of greater value to your business than a constant steam of new employees, weaving their way in and out of the company. Why? Companies with better staff retention rates experience a greater knowledge base, not only of your practices and procedures, but your company values and specialised knowledge of your customers and clients.
But whether it be a promise of flexibility that allows employees to handle personal/carer’s responsibilities, or an ability to offer employees the capability to climb the corporate ladder quickly; there are countless reasons your employees are resigning from your business and heading to one that suits their needs more.
With the increase in technology being used in offices across the country (emphasis being placed on recruitment professionals), it is now more common for your employees to be poached by another employer on platforms such as LinkedIn. A recent study showed that an “active” LinkedIn user with up-to-date profile information receives between 1 and 4 job opportunities/offers per month on the media platform.
Are you spending money on recruiting instead of investing in people and focusing on staff retention?
- Consider the costs of losing an existing employee and then on-boarding someone new:
- Recruitment costs (advertising the role and recruitment consultant fees).
- Other staff member’s time spent in training new employees (this is usually done by a manager with a higher pay rate) Reduced/lost productivity of a new employee as they “learn the ropes”.
- Reduced engagement/morale of existing employees, it is unsettling for current employees to be introduced to new employees combined with the excitement of “someone new” in the office.
- Cost of errors – unfortunately this is inevitable with new and inexperienced employees.
Retaining staff isn’t rocket science, you just need to know where to start and what to focus on.