WORKOUT Guard against too high a staff turnover
EVERYONE agrees a certain amount of staff turnover is good for regeneration of talent within a company, but it can be a drain on a company’s intellectual capital during times of adversity. As skills shortages continue to plague companies in Australia, employers are worrying about how to retain their key people, the latest Hudson report says. A Hudson survey of 7185 employers in Australia shows companies are working very hard to contain the damage from staff churn. Many organisations are betting on traditional options to keep talented employees engaged in order to retain their services. Flexible work options, monetary incentives and management support programs such as leadership training and internal career opportunities are among the more widely practised retention strategies employed by companies, the survey shows. Flexible work is the most popular — it is practised by 67 per cent of employers in the survey. Others are financial incentives (62 per cent), leadership programs (48.2 per cent), succession planning (47.7 per cent), mentor programs (36 per cent), formal coaching (35.4 per cent) and high potential programs (27.8 per cent), the survey reveals.
Financial incentives are most popular in companies in resourcesrich Western Australia; other states prefer flexible work options as the first choice.
‘‘ The visible cost of turnover, including recruitment, hiring, orientation and training sits somewhere between 50 per cent and 150 per cent of an individual’s salary,’’ says Simon Moylan, Hudson’s national practice leader of assessment and development. ‘‘ However, the additional unknown costs, such as loss of expertise, reduced productivity, lower morale, the cost of the vacant position and the training of the new hire means the true cost of turnover may be up to three times this amount.
‘‘ The cost of losing good staff far outweighs the cost of implementing these initiatives, so ultimately it’s about offering an attractive proposition where employees have the option to leave but choose to stay.’’