975,000 people changed jobs last year in Australia according to the ABS, and a further 60% of people plan on doing the same before the end of 2023.
On a global scale, the Harvard Business Review found that 41% of employees are considering resigning from their roles, and 36% of those are prepared to do so without a replacement job lined up.
Even prior to the pandemic, job tenure has been on the decline; where the average employee once stayed for about five years in a role, a 2021 report found the median tenure today to be as low as 1 to 2 years. As a result of these drastic employment trends, businesses are losing money instead of successfully retaining their mid to senior people and HR professionals. Furthermore, workplace leaders and recruitment specialists are being forced to re-assess their hiring strategy for 2022.
To assist you in minimising the fallout from employee turnover and to inspire you with fresh tips and motivation, here are our top 5 staff retention tips.
Tip 1: Calculate Your Business’ Cost of Low Retention
Entry-level employees cost between 30 – 50% of the annual salary to replace, while the number rises upwards of 150% for mid-level employees, according to Forbes. These costs include hiring, onboarding, training, ramp time to peak productivity, the loss of engagement from others due to high turnover, higher business error rates, and general culture impacts.
Furthermore, a study from the Centre for American Progress, citing 11 research papers published over a 15-year period, determined that the average economic cost to a company of turning over a highly skilled job is 213% of the cost of one year’s compensation for that role. That same cost can be applied to Australian companies. And with high performers delivering approximately 400% more in productivity than the average employee, losing even a few of your star employees can have an astronomical impact on your bottom line.
Thus, employers and HR managers need to prioritise implementing strong retention strategies in their workplaces, or risk being affected by these disastrous consequences.
Tip 2: Investigate Industry-Specific Drivers of Staff Turnover
To improve employee retention rates in 2022 and roll out a successful recruitment strategy, our second tip is to investigate and explore what entices people to stay in a job in your industry and more importantly, what makes them leave.
SEEK data recently revealed that 31% of Australian workers are looking to move jobs in the next 6 months for the following key reasons:
Furthermore, LinkedIn published the following trends on the key motivators that are driving changes in people’s attitudes and workplace preferences.
These motivators include:
To conclude, it’s essential that HR managers and employers who are struggling with talent acquisition and retention to start by investigating and analysing the key trends that are driving their workers to quit. Armed with this information, companies can then strategically update their digital marketing strategy, employee-value-proposition, online branding, and workplace culture.
Keep scrolling to find out the benefits of conducting these strategic updates and don’t hesitate to contact us if you’d prefer direct communication with the Wood Recruitment team.
Tip 3: Implement a Workplace Mental Health Program
Infinite lockdowns; daily fear of job loss; daily fear of a compromised loved one dying from COVID-19; kids “remote schooling” at home while dealing with being cut off from friends; dramatic changes in how and where work is done – and the big one, unimaginable anxiety from not knowing what comes next.
All of these have created a health injury as or more serious than the virus itself, which can be seen from Gallup’s global wellness report which reveals that 70% of people reported suffering from mental health issues last year (2021).
Australian research conducted by McKinsey also uncovered similar mental health trends in Australia, with 43% of people reporting they often experience work-related stress, 49% are worried about the negative impacts of going back to work, and 83% believe workplace wellbeing is the responsibility of the employer.
Thus, companies are recommended to prioritise their employee’s mental wellness by listening to their needs, implementing workplace-based wellness programs and fostering strong relationships between managers and employees.
Tip 4: Implement an Effective Online Brand Strategy
With 90% of jobseekers now going online to research career opportunities, it’s a fundamental requirement for companies to implement an effective digital marketing brand strategy, particularly when staff retention is an issue.
The strategy should be tailored towards achieving key recruitment marketing objectives such as:
Key elements to include in the strategy are having a local Google Business Profile, posting high-quality updates accompanied by links and visuals on social media at least three times per week, having a fully search engine optimised website, and posting long-form, informative blogs.
We also highly recommend analysing core digital marketing metrics regularly to ensure the overall strategy remains relevant, engaging, and attractive to both active and passive candidates.
Tip 5: Consider a Hybrid Workplace
3 in 5 Australians are looking for a degree of flexibility in their working arrangements with a mix of working from home and in the office or workplace, according to McCrindle. In fact, only a quarter of employed Australians prefer the more traditional approach with everyone working from the workplace all the time.
This nationwide preference for a hybrid approach shows that the aspects of workplace culture and community which are missed when working solely from home are still able to be met when employees meet in the workplace to collaborate.
If flexible work arrangements aren’t currently present in your business structure, investigate if this could a potential driver for turnover amongst your workforce.
You never know, it might just be the golden key to your retention challenges.
Tip 6: Be a Leader of the Future
SEEK Insights recently found that poor leadership was one of the top reasons why Australian employees quit their job in 2021. It’s often the root cause of poor financial performance, low employee engagement, and costly staff turnover.
The key attributes required to be a good leader range from emotional intelligence and relationship management to operational planning, according to the Australian College of Professionals (ACOP), which also recommend leaders of the future strive for these 7 core traits:
Thus, while education and practical experience are both big contributors to a leader’s performance, soft skills are becoming more and more prevalent in the shaping of the future workplace.
The benefits of investing in new and improved business strategies that aim to improve employee retention include increased workforce performance, productivity, engagement, and a reduction in unwanted costs as a result of staff resignations.
At Wood Recruitment in Perth, we understand the challenges that are emerging alongside Western Australia’s fast-paced recruitment marketplace. Demand is high and candidate laws of attraction are changing. If you need a hand with your talent acquisition or retention goals in 2022, don’t hesitate to give our friendly, expert team a call on (08) 9221 8122 or email email@example.com.
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