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Retention is a paramount consideration for modern workplaces as a shortage of skilled workers makes the market extremely competitive. Despite this, employees aren’t confident in their employers’ ability to retain valued workers.
Keeping retention as a constant priority should be on every leader’s mind, commented Robert Half director Nicole Gorton: “Companies need to be laser focused on their people. Even in an employment market where hiring intentions are not at an all-time high while unemployment has decreased, the skills shortage is real and companies continue to poach in-demand talent from competing organisations.
“Staff retention should therefore remain a continuous business priority that is regularly discussed at the highest level within the organisation to ensure their strategy is in line with evolving employee needs.”
Research from Robert Half has revealed that despite the necessity of upholding positive retention, 67 per cent of Aussie workers doubt their organisation’s ability to retain valued employees. Just 12 per cent are confident in their employers’ retention strategies.
Even more jarring are the opinions of the employers themselves, with 88 per cent questioning their ability to retain skilled workers. The cost of attrition is significant and, in the current economic climate, can seriously hurt a business.
“Losing talent will cost money and can be as much as three times their salary due to recruitment expenses, time spent on hiring and training a replacement and the impact on team morale, potentially leading to higher turnover in the future. Overall, replacing a valued member of the team typically outweighs the extra efforts needed to retain them,” explained Gorton.
There are a variety of reasons why an employee leaves an organisation, many of which are preventable. According to Robert Half, the top reasons were:
- Increased workloads (28 per cent).
- Burnout (24 per cent).
- Headhunted by competitors (23 per cent).
- Poor work/life balance (23 per cent).
- Limited progression opportunities (23 per cent).
- Lack of competitive salaries (22 per cent).
Gorton continued: “Business leaders generally understand why their employees leave the organisation, though awareness isn’t enough. Employers have many tools up their sleeve that they can use to improve job satisfaction, ranging from financial and non-financial benefits to building a culture where employees can grow and develop, and providing support to help employees alleviate heavy workloads.
“Establishing open lines of communication, actively listening to staff and being able to address their concerns – even if not everything can be resolved – are key to make employees see that the grass is not always greener in another pasture.”
RELATED TERMS
Attrition is defined as the process through which workers leave a company for whatever cause (voluntarily or involuntarily), such as retirement, termination, death, or resignation.
Jack Campbell
Jack is the editor at HR Leader.
