AS THE BATTLE for skilled workers intensifies, holding onto existing employees has emerged as the highest priority for Australian organisations in 2006, recent research has found
AS THE BATTLE for skilled workers intensifies, holding onto existing employees has emerged as the highest priority for Australian organisations in 2006.
Thirty-nine per cent of employers identified staff development and retention as their leading priority, followed by attracting suitable staff (23 per cent) and enhancing performance and productivity (21 per cent).
As the talent pool in Australia continues to shrink, there is more pressure than ever to hold on to strong performers, said Anne Hatton, CEO of Hudson Australia/New Zealand, which conducted the research.
“Organisations need to get on the front foot and look at more sophisticated ways to track, manage and develop their existing talent. They could otherwise face significant costs in staff losses at a time when they just cannot afford to let this happen,” said Hatton.
“As the skills shortage gets worse, and businesses undertake more proactive employee retention strategies, sourcing suitably qualified and experienced staff will be more challenging.”
Across all industry sectors, the highest priority was staff development and retention, with the most pronounced results being in the advertising/marketing/media and retail sectors.
“Smart employers will reap the benefits of a diverse workforce, including part-time workers, return-to-work parents or the mature age population, but will need to ensure the right policies and practices are in place to accommodate these workers,” Hatton added.
The survey of almost 8,700 employers nationally came on the heels of another survey which found that, while workers value a competitive pay package, it is no longer the most important reason to stay in a job.
“It is important that employers are aware that while monetary considerations are still key factors when it comes to keeping staff, increasingly other, often intangible factors, can play a significant role in an employee’s decision to stay or leave an organisation,” said Matthew Dale, national practice leader – talent management - Hudson Australia/New Zealand.
“This means that simply offering more money at bonus time may not be enough to keep your star performers.”
The Hudson survey of 10,000 US workers found that workers are more likely to look for a new job when their needs regarding career advancement, their relationship with their manager or training are not being met, rather than when their salary and benefits are poor.
Dale said that a sound retention strategy should be a key priority for Australian employers, as the trend for employees to stay shorter periods in the one organisation is here to stay.
“Those employers who can gain just an extra year or two of tenure from their employees will benefit from dramatically reduced turnover costs,” he said.
