A recent survey from the Australian Institute of Management (AIM) finds that small & medium enterprises across Australia have the highest rates of resignation from employees. AIM surveyed more than 500 organisations across Australia covering 270 job roles and 25,000 employees.
The average rate of employee turnover in Australia is 15%, employee turnover is costly, with reports of increased stress, reduced staff morale and loss of corporate intelligence affecting the remaining workforce. Other effects include reduced customer service, satisfaction and productivity, in addition to the financial burden of recruiting and training new staff. It’s easy to discount how much losing an employee actually costs you in the long run. Conservative estimates place the cost at around 20% of the employee’s annual wage, but this can go up to 200% for highly skilled workers.
The AIM survey found that the top 3 reasons for employees choosing to leave an organisation were;
- To seek a new challenge
- There was limited scope for career progression
- Insufficient financial reward
The survey also found that 4 in 5 employees are unhappy at work.
Most businesses would call in the experts if they were losing 15% of their clients per year right? So when it comes to employees why isn’t more being done to reverse trends?
To attract and retain quality employees business needs to implement strategies to engage and motivate employees, this includes being realistic about industry trends in compensation & benefits, job design and leadership. As a business owner you are an expert in your field, but you don’t sit down at the end of each week and work as an accountant, IT administrator or marketing expert, so why not outsource your employee matters to an experienced HR professional that understands contemporary practices designed to increase workplace culture & capacity within your business?
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