Voluntary staff turnover has risen in 29% of organisations over the past year, according to recruiting experts Hays.
Based on findings in the 2016 Hays Salary Guide, just 14% of the 2,752 organisations surveyed, representing over 2.6 million employees, reported decreased staff turnover during the past 12 months. The remaining 57% said it remained the same.
“The increasing number of resignations suggests that people are far more confident in the job market,” says Nick Deligiannis, Managing Director of Hays in Australia & New Zealand. “They are aware that more permanent and contract roles are now on offer, and they know that demand is rising for highly-skilled professionals.”
According to Nick, there are three factors behind Australia’s rising staff turnover rate.
1. Confidence strengthens: “Based on our survey almost two-thirds of employers (64%) experienced increased business activity over the past 12 months, with 70% expecting further increased activity in the year ahead. Staff levels are up too, with 39% increasing permanent headcount during the last 12 months – outstripping the 21% who decreased it.”
2. Cost consciousness still prevails: “Despite this positive activity, cost consciousness remains in vogue with 16% of employers offering no salary increases over the last year. Those employees who did receive a salary increase found that their wallets were not that much heavier. This is despite 82% of employers saying that salary and benefits have a major or significant impact on their employer brand – at a crucial time when skill shortages will make their presence felt again.”
3. Employees respond to employers’ lack of action: “It’s time for employers to recognise that times are changing. If employers do not respond to current market conditions, turnover will continue to rise as employees walk out the door to a role offering better career advancement, salary, benefits or work-life balance.”
According to the Hays Salary Guide, projected salary increases for the year ahead are not that much better. Perhaps that’s why 41% of employees say they’ll take matters into their own hands and ask for a pay rise in their next review. Another 25% are as yet undecided about popping the salary question.
Nick says employers need to be prepared for salary pressure. “As soon as a few employers in a particular sector or industry start to use salary to compete for top talent once more – and they will – those at the back of the pack for salary increases will be the first to experience even greater levels of turnover,” he said.
The Hays Salary Guide includes salary and recruiting trends for over 1,000 roles and is based on a survey of 2,752 organisations, representing over 2.6 million (2,686,179) employees in Australia and New Zealand.
Get your copy of the 2016 Hays Salary Guide by visiting www.hays.com.au/salary, contacting your local Hays office or downloading The Hays Salary Guide 2016 iPhone app from iTunes.
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For further information please contact Lucy Sharp, Regional Head of Marketing at Hays, on +61 2 8226 9885 or [email protected]