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HR professionals have had their say in a new survey that identifies the top factors driving turnover levels.
Hays has just released its FY23–24 Salary Guide, providing insight into turnover and hiring intentions, as well as salary trends.
The survey called on HR professionals to share what’s leading to turnover.
The top three factors were identified as:
- An uncompetitive salary
- Rising cost of living; and,
- A lack of promotional opportunities.
Meanwhile, HR employees’ top career priorities were listed as:
- A pay rise
- Being able to work flexibly; and,
- Learning or developing technical skills.
The guide noted 27 per cent of Australian HR professionals surveyed said their organisation is not pay transparent. New Zealand HR professionals fared slightly worse, with 30 per cent saying their organisation isn’t transparent about pay.
The vast majority of HR professionals believe pay rises should keep up with inflation (76 per cent); however, less than that (66 per cent) intend on asking for one.
Fifty-five per cent said a pay rise between 3 and 6 per cent would be appropriate.
Almost half (47 per cent) of HR professionals intend on staying with their current employer, the guide revealed. Thirty-six per cent said they might stay, and 17 per cent said they’re keen to leave.
When asked about their company’s current position regarding headcount, 51 per cent of HR professionals believe their employer wants to increase the number of permanent staff.
Thirty-four per cent said their employer wants to remain at the same permanent staff headcount, and 12 per cent said they want to decrease permanent headcount numbers.
When it comes to temporary or contract roles, 65 per cent of HR professionals said their employer wants to remain at the same headcount, while 19 per cent want to decrease, and 16 per cent want to increase.
The top five roles Australian HR professionals said their employer needs to fill are:
- HR advisers
- HR business partners
- Remuneration specialists
- WHS specialists
- HR and L&D coordinators
By comparison, New Zealand HR professionals said the top five roles their employer needs to fill are:
- HR advisers
- HR business partners
- HR/recruitment coordinators
- Talent acquisition (TA) consultants
- Employee relations (ER) specialists
Looking ahead
Across the board, Hays noted its research found that while salary is the most significant factor in attracting, rewarding and retaining employees today, benefits also play a large role.
“To be successful, the benefits offered should align to an organisation’s and its employees’ needs,” Hays said.
“Training, ongoing learning and development and career progression opportunities are important elements of a successful benefits program. Employees want to improve their skills and advance their careers, while employers want to build a skilled workforce to improve productivity, customer satisfaction and revenue.
“Despite this, just 26 per cent of employees are satisfied with their current benefits. Why? In the wake of the COVID-19 pandemic, they place value on emotional salary — the intangible benefits that positively impact their emotional wellbeing and job satisfaction, not just their career.
“For example, more than 20 days of leave is important to employees. In addition, almost two-thirds of desk-based employees will look for a hybrid role when they next job search. This is consistent with last year’s 64 per cent.”
Hays continued: “While employees continue to look for flexibility, employer sentiment has shifted, with 33 per cent now saying staff can come into the office ‘when it works for them’, down from last year’s 51 per cent.
“While this debate continues as both sides weigh up the benefits and challenges, finding the right balance will be important for employers in the current tight candidate market.”
RELATED TERMS
An employee is a person who has signed a contract with a company to provide services in exchange for pay or benefits. Employees vary from other employees like contractors in that their employer has the legal authority to set their working conditions, hours, and working practises.
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.
