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A recent report has revealed that C-suite employees across Australia are considering new job roles, with high turnover becoming a real issue.
According to a recent Gartner survey, more than half (56 per cent) of CxOs – senior executives reporting to the CEO, excluding CHROs – are likely or extremely likely to leave their current role within the next two years. The survey of 200 CxOs also found that 27 per cent are considering an exit within the next six months.
The research highlights a growing challenge for Australian organisations, as executives report an increased workload compared to two years ago:
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Sixty-seven per cent said they are being asked to take on more responsibilities.
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Fifty-six said their organisation relies more heavily on their function or business unit.
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Forty-four per cent said they are experiencing greater stress due to work demands.
High turnover at the C-suite level can disrupt organisational performance:
“Heightened executive turnover is a challenge for organisations, as a less tenured executive team typically results in lower enterprise growth,” said Alexander Kirss, senior principal in Gartner’s HR practice.
“Further compounding the issue, more experienced executives are more likely to leave within the next two years than those who are newer in their roles.”
While HR leaders among organisations play a pivotal role in reducing the turnover, several obstacles have been identified, which include:
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Less than one in four CxOs believe their chief HR officer (CHRO) effectively strengthens C-suite cohesion.
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Only 23 per cent of CxOs feel their CHRO is successful in managing tensions among executive team members.
Regarding these challenges, Gartner argues that CHROs can take a proactive approach to addressing executive retention through the following strategies:
1. Take on the role of executive career coach
“CHROs can step in as executive career coaches for CxOs and collaborate with CEOs on workforce development and succession plans for the C-suite. With a better understanding of the value of leadership skills and ownership over learning and development, CHROs are best positioned to connect CxOs to both internal and external development resources, and to do so in a way that is tailored to CxOs’ unique needs.”
2. Build trust and strengthen CEO relationships
“CHROs can help CxOs build trust with the CEO by ensuring executives understand the CEO’s priorities and regularly engage in candid communication with the CEO, including opportunities to showcase their expertise. Building trust with their CEO is essential for CHROs due to the sensitive nature of the topics they must address. Actively sharing with peer CxOs what has worked well – or less well – in building CEO trust can help CHROs accelerate trust across the C-suite.”
3. Support mental health and work/life balance
“CHROs should serve as executive mental health champions, help peers identify sources of work stress, and provide coaching on ways to improve work/life balance.
“CHROs must model ideal wellbeing practices for their executive colleagues and employees at large. Many CxOs find it hard to share with their peers when they are struggling with mental health or other wellbeing concerns.
“By transparently communicating their efforts toward maintaining wellbeing, however, CHROs will help remove the stigma and apathy surrounding such conversations.”
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Turnover in human resources refers to the process of replacing an employee with a new hire. Termination, retirement, death, interagency transfers, and resignations are just a few examples of how organisations and workers may part ways.
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
