EMPLOYERS’ TOP HR priority for 2005 is to focus on the retention and development of their people as they face the ongoing effects of record low unemployment and a diminishing pool of qualified workers, according to recent research
EMPLOYERS’ TOP HR priority for 2005 is to focus on the retention and development of their people as they face the ongoing effects of record low unemployment and a diminishing pool of qualified workers, according to recent research.
The survey of more than 7,800 employers nationally found that 38 per cent of managers identified staff development and retention as their organisation’s highest HR priority for the year, with a further 21 per cent looking to focus on enhancing performance and productivity.
Another 20 per cent will be concentrating on attracting suitable staff, while developing leadership capability is the highest HR priority for 14 per cent of employers, according to the findings in the Hudson Report.
“The serious threat facing employers this year will be their ‘star performers’ being poached by competitors,” said Anne Hatton, CEO of Hudson Australasia.
“Bosses will need to considerably expand their efforts to hold on to their top talent in this market where employers are battling to fill positions.
“There has been an increase in the priority that organisations are placing on the investment and retention of their people compared to this time last year, suggesting that 2005 will see organisations spend more on the professional development and engagement of their high performing, high potential staff.”
There is no doubt pressure on wages will continue to increase in the foreseeable future, Hatton said. However employers are recognising that lavishing more money on their employees will not necessarily persuade them to stay.
“The first task for employers is to seek and attract the right type of people and skills to meet the organisation’s strategic needs,” she said.
Once on board, the careers of the employees should then be managed according to motivation, maximisation of performance, professional development and reward.
“The employee needs to understand how their role contributes to the current strategy, and how their developing career will grow with the future direction of the organisation,” Hatton said.
“Rewarding employees is not just a financial proposition, but expands to the recognition of performance, promotion and the provision of a suitable work/life balance environment.”
The survey also found that managing industrial relations was the top HR priority for only 3 per cent of employers.
Across all industry sectors, the highest priority was staff development and retention was most important in professional services (46 per cent), healthcare (44 per cent), advertising/marketing/media (43 per cent), wholesale/ distribution (42 per cent) and telecommunications (41 per cent).
