Staff Turnover set to Rise
Looking for a new job? Join the club.
Noticed quite a few people leave recently? You're not alone.
A recent survey predicts we’re about to see an increase in staff turnover. In 2018, one in seven Australians will change jobs (1.8m people). Average turnover rates will increase to 15% and 67% of companies in Australia will see more staff leave year-on-year. (Robert Half)
Other research finds that between one and a half and two years is now the right time to stay in a job (a sizeable reduction from almost three years in 2015).
Also, at any one time, 55% of staff are passively open to new opportunities. Young people are more likely to be looking; 75% of respondents aged 18-34 feel that job hopping actually helps their career prospects. Technical staff, who are in great demand, switch jobs at even more frequent intervals. (Accounting Principles).
Lack of development, money, working for a bad manager and boring work are the main reasons why people leave. Although most companies find this out in exit interviews, only a few act on the outputs.
Staff turnover, of course, represents a massive cost to business; not only through lost time and productivity but the costs of hiring and training replacement staff. The impact on the morale of staff who remain is often overlooked – but can also represent a huge cost.
It’s a difficult one given that the state of the labour market with jobs easier to find.
Key factors are development and training. Indeed, the latest research by McKinsey finds that millennials, for example, want a company to provide opportunities to develop skills that will be useful in the future. This is one of the main reasons for staying.
We agree with the views expressed in Human Resources magazine in February:
‘Todays employees are motivated individuals who what to achieve high levels of self-development and achievement.’
But, traditional development and training approaches (a course twice a year) aren’t the answer. Things have changed. Companies are better playing a support role; providing ideas, resources and platforms that staff need for their development.
We know one company where managers are trained to help staff find the future skills that interest them. The company provides foundation courses in the core areas of their business. They then effectively curate selected content to employees; aimed at helping them develop in their chosen future skills areas. This may mean focusing on things that interest their people but that aren’t relevant at present to the organisation. There could be a win-win here; the employee gets development in an area that interests them, and the company gets capability in a potentially new or related field.
This is like the approach outlined by Deloitte in their ‘Catch the Wave’ publication:
If your company has high staff attrition, however, take heart. You’re not the only institution with the problem.