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Buoyant market allows employees to shop around

By Ben Schneiders | theage.com.au | 21 March
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Inadequate pay or frustration at a lack of promotion opportunities were the main reasons given for the high level of turnover, along with poor relationships with managers and lack of work-life balance.

Overall, average staff turnover was 18.5% in the previous 12 months, a survey of more than 1000 human resources professionals and executives by the Australian Human Resources Institute has found.

Annual staff turnover is typically between 11% and 13%.

The retention rates varied from industry to industry, with staff leaving jobs in retail at the greatest rate while the education sector recorded one of the lowest levels of turnover.

For university student Adora Goh, 19, finding a job has not been a problem. Since the start of last year she has changed jobs three times, including working in a sandwich bar and a shoe shop.

A friendly place to work is important, but pay is the big issue.

"When you change jobs you are looking for a better working environment, better pay," she said.

Ms Goh said once she gained experience in a type of job, whether it was retail or hospitality, the opportunities have come.
She has leaned towards part-time work in retail as the pay tends to be better.

The Australian Chamber of Commerce and Industry's acting chief executive, Peter Anderson, said staff turnover had increased in the past decade because of lower unemployment and a more skilled workforce that had greater options.
"There's been an increase in what we call labour mobility since the mid-1990s, but it's particularly evident when the labour market gets tight and there are some skills shortages," he said.

"We have a growing economy but we don't have workforce participation increasing at the same rate."

The institute report found 64% of those surveyed thought staff retention was a problem in their business.

"We need to provide a culture where people are proud to be associated with the company and enjoy coming to work," one respondent to the survey said.

"Loyalty programs and recognition of work performance will help," another said.

The institute's national president, Peter Wilson, said the cost to business of losing too many staff was high. But for employees the situation has provided opportunities to demand greater flexibility and pay from their bosses.

Mr Anderson said younger employees were more willing to consider career changes or even leave jobs to go on overseas holidays.

Increasingly, businesses were having to do things such as negotiate with staff to take unpaid leave so they could travel, he said. The smarter employers would have a range of strategies to keep staff, including providing interesting work and good wages and conditions.

First published by TheAge.com.au on March 21 2008
Visit theage.com.au for the latest news updated throughout the day

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