The rise of job hopping among workers is changing the landscape of employment, with companies needing to adapt their retention strategies to keep employees engaged.
In fact, over 55 per cent of Aussies have been at their current workplace for less than five years while just one in 10 have been with the same company for over 20 years1.
In the year ending February 2022, 1.3 million Australians changed jobs – accounting for 10 per cent of employed people, which was the highest annual job mobility rate since 2012.
Clearly, retention needs a renewed focus, with research showing that staff turnover increased for 58 per cent of employers last financial year with a third believing this will accelerate this year.
It’s been a challenging three years for businesses, especially in the wake of the COVID-19 pandemic as employed people’s needs and wants change meaning employee retention has become critical for Australian businesses.
A high turnover of staff costs time, effort and money with businesses spending approximately 1.5 times their annual salary on finding a replacement, which is coupled with a loss in knowledge, skills and productivity, according to Brooks Australia.
This is a company that has been going against the grain, with the average worker being employed for more than nine years.
Brooks Australia CEO, Cathy Brand, said employee retention begins with getting things right from the outset.
“Companies that recognise the key priorities for their employees can proactively design policies and culture that foster employee retention. This involves staying connected, actively listening, engaging with employees, and understanding their perspectives,” Brand said.
“Today’s workforce has developed new attitudes to how they work. There is a big emphasis on how work fits into their lives including family time, autonomy in their roles and flexibility in where they work, especially in the wake of the COVID-19 pandemic.”
Research finds that with priorities and values changing with age, demographic cohorts have different needs at the workplace. For example, Gen Z places a high value on work-life balance (55%) while Gen X and Baby Boomers both rate working alongside enjoyable co-workers along with having stronger preferences for office location, workplace safety, and autonomy4.
Brooks Australia chief engineer, Anis Shenouda, has been with the company for over 30 years, making him the longest-serving employee, says the work environment has been a big factor in his longevity.
“I’ve been with Brooks for 36 years now, and the reason I’ve stayed this long is because of the incredible team environment. I feel supported every day, which has made all the difference. I truly believe that a strong team environment is what has made this company so successful, and it’s why I plan to stay here for many more years to come,” Shenouda said.
It is also important to love your job, he said.
Brooks currently has five staff members who have been at the company for over two decades with a further four employees who’ve been there for over 10 years.
Organisations with high retention rates typically exhibit strong engagement, perform well, and provide excellent customer service. Employee engagement is critical, as those who are invested in a company’s mission will find purpose in their work and display greater dedication to their roles.
Brand recommends introducing strategies to address retention sooner rather than later.
“As employers continue to expand their workforce and the job market remains active, individuals who are not entirely content in their current job may consider other opportunities. So, if retention concerns are not addressed promptly, employees may start to believe that there are better options available elsewhere,” Brand said.
“There are a few simple strategies all companies can implement that don’t involve money. Employees are looking for good management, good work relationships, to be engaged and satisfied with their roles.”