Employee Retention
02 Feb 2012
Retaining employees is an escalating issue according to The Randstad World of Work Report 2011/12, which found over a third of employees surveyed in Australia intend to leave their job within 12 months. In addition, the report also found that more than twice the number intending to leave will do so for better opportunities for growth and professional development, as opposed to better remuneration
With the cost to replace an employee estimated at anywhere between 50 and 150% of their annual salary, it makes sense that retention, especially of key talent, would be high on most organisations objectives. Yet many companies reported that they do not conduct regular surveys that measure staff engagement and intention to stay with the organisation. With retention intrinsically linked to employee engagement, how are you going to reduce staff turnover if you don’t know what motivates your employees, nor what they value (or don’t value) about your organisation?
Reducing staff turnover provides value on many levels. It reduces your costs – both direct and indirect. Recruitment and training costs are tangible and real, however indirect costs such as lost productivity and skills are also factors that need to be considered. And it helps organisations retain the unique information about the products and services offered as well as knowledge of your customers and your competitive advantages.
According to the Randstad report, feeling valued by the organisation and recognised for performing their job well is the biggest motivator for employees to remain with the organisation. Employees who are happy, who can utilise their skills and who are given opportunities for professional growth are much less likely to seek employment elsewhere.
Go to our Employee Surveys page to find out how we can help you understand what your employees are thinking.