| Employers and employees alike had a rough 2009 due | | | | infrastructure |
| to the global financial crisis. Business leaders wrestled | | | | Includes salary, employment conditions, monetary |
| with tightening budgets and cost-cutting strategies. The | | | | rewards and job security |
| job landscape was vastly different to the one our | | | | 4. Interpersonal Factors |
| 2007 Retention Review examined. While back in 2007 | | | | Focuses on employee relationships within an |
| we were experiencing dramatic talent shortages, last | | | | organisation and the need for respect, involvement and |
| year many employees if not asked to leave, were | | | | belonging |
| asked to stay positive and productive despite pay | | | | Includes interactions between employees and their |
| freezes or cuts. For many organisations, the focus | | | | direct supervisor, colleagues and senior management |
| was on streamlining operations to remain financially | | | | Women Resign For Work/Life Balance And When |
| viable rather than maintaining employee morale. | | | | Unsupported In Their Workplace |
| As signs of an economic upturn begin to appear, talent | | | | A look at the reasons why women and men resigned |
| retention returns to the agenda as an organisational | | | | in 2009 reveals that "enrichment factors", such as |
| priority. Employees may feel their organisation was | | | | growth and job satisfaction, played a substantial role |
| unfair or asked too much of them during the downturn. | | | | across both groups. This finding was consistent with |
| Scary predictions of 10% unemployment, or even 7%, | | | | the 2007 Retention Review. |
| now seem unlikely. In June 2009, total job ads were | | | | Women indicate a stronger propensity to leave their |
| 51.4% lower than 12 months earlier according to the | | | | employer in seeking work/life balance. |
| ANZ Job Advertisements Series, but figures from the | | | | On a seven point scale, women rank this factor seven |
| Australian Bureau of Statistics show that | | | | percentage points higher than men. In other words, the |
| unemployment peaked at just 5.8% in July 2009. This | | | | average importance rating women allocate to this |
| suggests that a lot more people would have changed | | | | factor is 48% (3.36 on a seven point scale), compared |
| jobs last year if they could have. In January 2010, | | | | to men at 41% (2.87 on a seven point scale). |
| Australia's jobless rate was 5.3%. Employees are | | | | Women also rate work stress as a primary reason |
| gaining confidence and the upper hand again. Those | | | | for leaving, with an average importance rating of 49%. |
| who reluctantly stayed put may now be about to | | | | This is more than men at 40%. |
| leave. | | | | Our results show that although "enrichment factors" |
| Savvy organisations know that retaining staff to | | | | are the most important drivers of retention for women, |
| maintain capability and productivity levels at this critical | | | | balancing demands both within and outside the |
| juncture will best position them for financial success in | | | | workplace are also essential. Women leave jobs not |
| the long term. Retaining talent also saves money that | | | | because they have different motivations than men, |
| may otherwise have been spent on recruitment and | | | | rather because they may be unsupported in balancing |
| training costs. These issues raise a couple of questions | | | | their work and non-work commitments. |
| for leaders: | | | | How do you guarantee that employees perceive work |
| What levers can we pull to ensure our staff stay | | | | life balance to be practical and achievable? The move |
| on board in 2010? | | | | towards flexible working is a significant cultural shift |
| As we recover, what might impact high-performing | | | | that centres on supporting staff and measuring outputs |
| and critically skilled talent to leave? | | | | and achievements, rather than processes. To enable |
| In the aftermath of the global financial crisis, the new | | | | this commitment to work/life balance, five distinct |
| 2010 Retention Review informs organisation leaders of | | | | practices need to be in place: |
| the motivations behind staff attrition. Organisations | | | | 1. Support and role-modelling from senior leaders |
| should not become complacent about retention. A | | | | 2. Dispelling perceptions that work/life balance policies |
| strengthening economy may mark the beginning of a | | | | will negatively impact career opportunities |
| mass exodus of talented staff seeking improved | | | | 3. Manageable workload and time expectations |
| opportunity and conditions. The staff turnover issues | | | | 4. Communication around the inclusive nature of work |
| presented in this report are important to consider when | | | | life balance (flexible working options are not only for |
| creating and executing an effective retention strategy. | | | | women) |
| This report will help to ensure your organisation has the | | | | 5. Support from colleagues |
| resources needed to bounce back and grow. | | | | 4 Retention Tips Following Periods Of Uncertainty |
| About The Study | | | | Despite retention taking a back seat in 2009, it's now |
| In analysing the reasons behind employees leaving | | | | regaining significance for organisations. Those that |
| voluntarily, we examined the exit survey responses of | | | | chose to hold on to key staff and treat them well may |
| 1548 employees from 25 Australian-based | | | | now reap the benefits as other organisations lose |
| organisations who departed in the 2009 calendar year. | | | | talented employees to competitors. As many |
| The organisations range in size from 50 to 10,000 | | | | employers will learn, their treatment of employees |
| employees and include a range of industries from | | | | during times of crisis will play a pivotal role in future |
| state government to private enterprise. | | | | retention. However, employers who treated their staff |
| Departing employees completed an online survey that | | | | well are only half way there. Job supply will rise and |
| tapped into both their reasons for leaving and their | | | | the threat of employee temptation is only a few clicks |
| general attitudes about their work environment. | | | | away. |
| Telephone interviews supplemented the online survey | | | | For employers who were forced to respond to the |
| results in some instances. | | | | downturn with measures such as forced leave without |
| A core component of this article is a consideration of | | | | pay, retrenchments and other cuts, they may have |
| the drivers of turnover across different demographic | | | | sown the seeds of departure. These organisations are |
| groups, particularly generation and gender. | | | | left with no choice but to mend the psychological |
| 7 Key Findings | | | | contract they've broken with employees. |
| 1. Fewer departing employees indicate a "lack of job | | | | While the findings of the Retention Review indicated |
| satisfaction" as their number one reason for leaving, | | | | different drivers of retention between women and |
| selected by 10% of employees in 2009 compared to | | | | men and across generations, the most important |
| 14% in 2007. | | | | factor for all groups is still "enrichment": growth, |
| 2. Employees aren't happier; since 2007 there's been a | | | | advancement and recognition. |
| notable increase in work stress and job security as | | | | Our research suggests the following retention |
| emerging factors for resigning | | | | strategies have a workforce-wide relevance: |
| 3. Work-related stress causes more women to walk | | | | 1. Keep Communication Open And Transparent |
| than men | | | | Communication is vital in retaining or regaining the trust |
| 4. Within employers' control, opportunity for career | | | | and loyalty of staff during the turnaround. Even if news |
| advancement is the most important reason behind | | | | hasn't always been positive and cost-cutting may have |
| resignations | | | | been inevitable, being transparent and authentic now |
| 5. Contrary to popular thinking, one's manager is not | | | | will count ten-fold as organisation performance |
| commonly rated as the "primary" reason for leaving; | | | | improves. For example, a quarterly update from the |
| professional growth and development are more | | | | CEO can keep communication open. Talking about the |
| important | | | | difficulty your organisation and industry may have gone |
| 6. "Enrichment factors" are critical to Generation Y, | | | | through is very important, especially with younger |
| with a higher proportion of them leaving their employer | | | | people. |
| in 2009 for career and professional development | | | | 2. Don't Restrict Development Opportunities |
| opportunities than other generations | | | | As stress and workload have increased, some staff |
| 7. Women indicate a stronger propensity to leave their | | | | may now feel unappreciated and overworked. Leading |
| employer in seeking work/life balance | | | | organisations will focus on fostering teamwork and |
| People Leave Their Manager: Myth Dispelled | | | | solidarity despite external pressures, which will |
| There's a widespread saying that employees don't | | | | ultimately forge the way to success in 2010. Consider |
| leave organisations, they leave their managers. | | | | inexpensive, non-financial methods that can contribute |
| However, our research tells us a different story. | | | | to morale building without breaking the bank. It may be |
| Benchmarking from our exit survey shows that the | | | | as simple as praise from the boss or the opportunity |
| behaviour and actions of the boss are not commonly | | | | to lead a project. Skill development is imperative, |
| rated as a primary reason for leaving when compared | | | | particularly when hiring the next generation of leaders. |
| to other issues. Although it can be a contributing factor | | | | Formal and informal methods such as mentoring and |
| in an employee's decision to leave, it doesn't rate as | | | | in-house staff training may present new avenues for |
| highly as other reasons centred on growth and | | | | learning and growth. |
| enrichment. | | | | 3. Maximise Commitment To The Organisation And |
| Benchmarking allows leaders to identify unique issues | | | | The Road Ahead |
| of concern compared to other organisations in the | | | | As a by-product of recognising and valuing staff, |
| wider marketplace. | | | | commitment to the organisation is an integral |
| Top 5 Reasons For Leaving Within The Employer's | | | | advantage among retained staff. High levels of |
| Control | | | | commitment create a desire to be aligned with the |
| 1. Little opportunity for career advancement 12% | | | | organisation. Generating dedicated and loyal staff leads |
| 2. Lack of job satisfaction 10% | | | | to better business outcomes. Many organisations that |
| 3. Lack of professional development opportunities 9% | | | | protected and promoted staff during the global financial |
| 4. Inability to balance work and life demands 8% | | | | crisis are now reaping the financial and tangible |
| 5. Workload-related stress 8% | | | | benefits of a more engaged, confident workforce. |
| Retention Can Be Linked To Four Key Themes | | | | Commitment to the organisation in times of change or |
| When looking at retention factors within the control of | | | | uncertainty can dictate the difference between |
| an organisation, we have taken analysis further by | | | | employees demonstrating loyalty or looking for a |
| grouping employee reasons for leaving into four | | | | better offer. |
| themes, based on our own factor analysis. These | | | | Similarly, those organisations that enjoy high levels of |
| groups are described below. | | | | commitment through trying times are those that do not |
| 1. Enrichment Factors | | | | falter in their support of professional development and |
| Focuses on motivators that seek to enrich the | | | | a healthy balance between work and life |
| work potential of employees | | | | commitments. Reward tenure and respect the |
| Includes achievement, recognition, skill development | | | | contribution employees make to the organisation. |
| and advancement | | | | 4. Renew The Psychological Contract With Staff |
| 2. Home Life Factors | | | | As an employer you will be very grateful to the people |
| Focuses on the amount of time given to work and | | | | who stuck by you and made sacrifices with you in |
| non-work roles and the level of involvement across | | | | 2009. You've shared the pain and now you're probably |
| different aspects of one's life | | | | keen to share the gain. Tell them. Tell them that no |
| Includes work/life balance, family commitments, | | | | new employee can win your trust like they have, |
| telecommuting and work flexibility | | | | because they have shown their mettle. Leaving now |
| 3. Structural Factors | | | | would be like selling at the bottom of the market, right |
| Focuses on aspects of an organisation's physical | | | | before they reap the rewards and recognition they |
| environment and equipment, resources and | | | | deserve for the loyalty they've shown. |