Putting the brakes on poor retention

Retention is crucial to any business and can significantly impact an organisation's success. Employee retention is particularly essential, as the cost of replacing a valuable employee can be substantial.

These statistics suggest that employee retention is a significant challenge for employers in Australia, with many employees considering leaving their current job for various reasons. Employers may need to focus on improving opportunities for career development and offering competitive compensation and benefits to attract and retain top talent. Here are some employee retention statistics for Australia:

1.????According to a survey by Hays in 2020, 51% of employers in Australia reported difficulty in retaining staff.

2.????The Australian Bureau of Statistics reported that in 2020, the average employee tenure was 5.2 years, with a median of 3.9 years.

3.????The Australian HR Institute found that 32% of employees in Australia were likely to leave their current job within the next year, with work-life balance being the most common reason cited.

4.????A survey by Indeed in 2021 found that 65% of Australian workers were actively looking for a new job or would consider a new job offer if presented with one.

5.????The Mercer Global Talent Trends 2021 report found that 38% of Australian employees plan to leave their current employer within the next 12 months.

Why should it be a top priority for your company and how to put the brakes on poor retention?

Cost Savings

One of the most significant benefits of employee retention is cost savings. The cost of replacing an employee can be up to 2.5 times their salary, depending on the position and the industry. This includes the cost of recruitment, training, and lost productivity during the transition period. Companies can avoid these costs by upskilling employees and investing in other business areas.

Increased Productivity

Upskilling employees can also lead to increased productivity. When employees are satisfied with their job and feel valued by their employers, they are more likely to be engaged and motivated. This can result in higher levels of productivity and better performance. Additionally, employees who have been with a company for a longer period tend to understand better the company's goals and processes, which can lead to more efficient work.

Improved Customer Service

Employee retention can also have a positive impact on customer service. When employees are happy and motivated, they are more likely to provide excellent customer service. They are more familiar with the company's products and services and can provide customers with the support they need. This can result in increased customer satisfaction and loyalty. Further, employees who have been in the company for a long time build productive relationships with the client that is lost when they leave.

Stronger Company Culture

Upskilling employees can also help to build a stronger company culture. Employees who stay with a company for a long time become part of its culture and lived values. They are more likely to share and demonstrate these values with new employees, which can help to create a cohesive and positive work environment. Additionally, when employees feel valued and supported, they are more likely to be loyal to the company and its culture.

Better Talent Acquisition

Finally, retaining employees can also lead to better talent acquisition. When employees are satisfied with their job and feel valued by their employers, they are more likely to recommend the company to their network. This can result in more qualified candidates applying for open positions. Additionally, when employees stay with a company for a long time, they can be a valuable source of institutional knowledge and experience, which can be useful during recruitment.

Employee retention should be a priority for any company. By retaining employees, companies can save money, increase productivity, improve customer service, build a stronger company culture, and attract better talent. Investing in employee retention through upskilling can significantly and positively impact an organisation's success.