Making loyalty work

Avoid high staff turnover

WORKERS are moving from job to job at increasing rates, making it extra important for employers to encourage employee loyalty.

High staff turnover means expertise is lost and money must be spent hiring a replacement and getting them up to speed.

In 2015, the Australian Human Resources Institute revealed the average annual staff turnover was 16% of the organisation’s staff, up from 13% in 2012 but down from 18.5% in 2008 before the Global Financial Crisis.

All of these figures exceed the ideal turnover rate of less than 10%, as voted by more than two-thirds of survey respondents.

Workers say they are most likely to stay in their job if they have good relationships with colleagues (44%), job satisfaction (35%), good work/life balance (33%) or flexible work options (27%).

Despite this, the most popular retention strategies among employers are training and development opportunities (offered by 61% of organisations), flexible work options (51%), performance appraisals and feedback (50%), and recognition for employee contribution (41%).

Andrea Davey, chief operating officer of recruiter Employment Office, has been with her employer for 12 years.

Ms Davey says there may be some benefits to trying different employers – such as experiencing different operating practices and company cultures – but ultimately, loyalty allowed her career to progress.

“I’ve seen the company evolve and grow and have a real sense of pride when it comes to what we’ve achieved. I feel like I’ve contributed to our growth and success,” she says.

“I’ve been given significant learning opportunities and have climbed the career ladder within this company as a result of what I’ve achieved.

“If I had moved around over the past 10 years I might not have been able to

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I feel like I’ve contributed to our growth and success.

— Andrea Davey

progress into the role I’m in today as I would have started again each time I moved roles.”

McCrindle report Job

Mobility in Australia reveals the average person spends three years and four months at a company, with this figure increasing with age.

Those younger than 25 average one year and eight months, while those 45 and older average six years and eight months.

Based on the research, a school leaver today will average 17 employers spanning five separate careers in their lifetime.