High staff turnover can have huge implications for your business, which is why you need to understand why your staff stay and what motivates them to leave.
why staff stay
The 2015 Randstad Award employer branding research shows that the top three reasons Australian staff remain in a job is because they have:
- A good work-life balance (54%)
- Flexible working arrangements (39%)
- A competitive salary (28%)
why staff leave
people leave their jobs for two main reasons:
- They are either pulled by a better job or a change in their circumstances.
- They are pushed by dissatisfaction with their current job or employer, typically by lack of career or training opportunities, and often by personal work factors.
the impact of employee turnover on organisations includes:
- A loss of knowledge
- A decline in productivity
- Extensive cost of hiring and training a new employee
developing a retention strategy
While there is no magic bullet to prevent your staff from leaving, developing an employee retention strategy is sensible insurance. An effective strategy should be flexible and responsive, involve short- and long-term planning and be properly resourced.
the strategy should include:
From the start of the recruitment process, provide prospective employees with a realistic job preview to avoid false expectations. Immerse new employees in an appropriate induction and onboarding program to minimise departures during the first six months.
Communicate with your workforce about organisational goals and progress. The Randstad World of Work Report 2014 showed that for nearly half of workers, the two biggest reasons to perform well and stay in their jobs were being appreciated and understanding how their role contributes to the organisation’s goals.
giving employees a voice
Conduct surveys, appraisals, focus groups and exit interviews.
Focus on managing and developing people with potential. Include on-the-job training, coaching or in-house development such as internal knowledge-sharing, networking events, leadership coaching and mentoring.
line manager accountability
Employees join companies but leave managers. Treat everyone fairly, as even a perception of favouritism can lead to resignation.
Where possible, be flexible with hours and allow staff to work from home.
If promotion is not possible, a sideways move can boost skills and self-esteem. Assist employees to set objectives and personal development plans, and provide career information, advice, counselling, workshops and developmental assignments.
While improving pay and benefits is obvious, offering a more flexible benefits package is a low or no-cost option.
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