Majority of Australian workers question their company’s ability to retain them and employers agree
New independent research by specialised recruiter Robert Half finds that two-thirds (67%) of Australian workers are not confident in their employer’s ability to retain valued employees in 2024, as staff succumb to the effects of continuous heavy workloads and increased work pressures. Employers, however, are even less confident in their company’s retention policies with 88% questioning their organisation’s ability to retain valued employees, fearing their competitors will headhunt their talent.
This leaves only one third (33%) of workers and just 12% of employers confident that their company’s retention strategies and opportunities will prevent employees from resigning to work elsewhere.
Millennials are the most concerned their employer will not be able to retain staff, with almost half (45%) reporting they are “very concerned” that valued employees will leave to work elsewhere, compared to 40% of Gen X. Fewer employees at the start and end of their working lives hold such strong concerns, however 31% of Gen Z and 25% of Baby Boomers are still very concerned their employers will have retention issues.
The reasons why companies may not retain staff
When asked about specific concerns Australian workers and employers hold about their company’s ability to retain valued employees, notable similarities emerge in the top reasons. Both groups cite working conditions, encompassing factors like heavy workloads and increased pressure, as well as burnout as primary concerns. Additionally, aspects such as work-life balance, career progression opportunities, and the absence of competitive pay are also identified as significant factors contributing to retention challenges. These shared concerns underscore that employers have a good understanding as to why their staff leave organisations.
| Workers
| Employers
|
Heavy workloads/Increased work pressure
| 28%
| 25%
|
Headhunted by competition
| 23%
| 26%
|
High burnout rates
| 24%
| 20%
|
Poor work-life balance
| 23%
| 20%
|
Limited career progression opportunities
| 23%
| 20%
|
Lack of competitive salary compared to other companies
| 22%
| 21%
|
Corporate values may also be a problem for some
CFOs have the lowest confidence levels in their company’s retention strategies, with 90% concerned that they will lose valued employees. They are equally concerned that their company’s corporate values and environmental, social and governance ethics are not attractive to employees (24%) as they are that heavy workloads and headhunting will cause them to lose valued employees.
CIOs, meanwhile, hold the greatest concerns their talent may be headhunted by competitors, cited by 35%. They see competitive pay as being a significant problem, as 28% fear they cannot offer competitive salaries compared to other companies and 24% believe the compensation they provide is just too low.
“Companies need to be laser focused on their people. Even in an employment market where hiring intentions are not at an all-time high while unemployment has decreased, the skills shortage is real and companies continue to poach in-demand talent from competing organisations. Staff retention should therefore remain a continuous business priority that is regularly discussed at the highest level within the organisation to ensure their strategy is in line with evolving employee needs,” says Nicole Gorton, Director at Robert Half.
“Losing talent will cost money and can be as much as three times their salary due to recruitment expenses, time spent on hiring and training a replacement and the impact on team morale, potentially leading to higher turnover in the future. Overall, replacing a valued member of the team typically outweighs the extra efforts needed to retain them.”
“Business leaders generally understand why their employees leave the organisation, though awareness isn’t enough. Employers have many tools up their sleeve that they can use to improve job satisfaction, ranging from financial and non-financial benefits to building a culture where employees can grow and develop, and providing support to help employees alleviate heavy workloads.”
“Establishing open lines of communication, actively listening to staff and being able to address their concerns – even if not everything can be resolved - are key to make employees see that the grass is not always greener in another pasture,” concluded Gorton.
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Notes to editors
About the research
The study is developed by Robert Half and was conducted online in November 2023 by an independent research company, surveying 500 hiring managers (including 100 CFOs and 100 CIOs) and 1,000 office workers from companies across Australia. This survey is part of the international workplace survey, a questionnaire about job trends, talent management, and trends in the workplace.
About Robert Half
Robert Half is the global, specialised talent solutions provider that helps employers find their next great hire and jobseekers uncover their next opportunity. Robert Half offers both contract and permanent placement services, and is the parent company of Protiviti, a global consulting firm. Robert Half Australia has offices in Brisbane, Melbourne, Mount Waverley, Perth and Sydney. More information on roberthalf.com.au.
