WORK­OUT Guard against too high a staff turnover

The Weekend Australian - Travel - - Career One -

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.’’

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