HR experts tell us time and time again that the benefits of investing a little in staff training and retention far outweighs those in recruiting new staff – and the benefits stretch far beyond just the financials.
In fact, businesses both small and large across Australia are experiencing increasing voluntary staff turnover rates, with surveys conducted by the Australian Human Resources Institute (AHRI) revealing an average turnover rate (within the first 12 months of employment) across all small business industries of 16% in 2016. A similar survey conducted by PricewaterhouseCoopers indicates this number could be as high as 23%. These staggering figures suggest many businesses can reasonably expect nearly 1 in every 4 new staff to leave within their first year of employment, and is a growing issue costing Australian business an estimated $3.8 billion annually in lost productivity, including $305 million in avoidable recruitment costs each year.
The Costs of Losing Staff
Depending on your source, the cost of turnover could cost anywhere between 30%-250% of the positions annual salary. Where do these costs go?
- Advertising costs
- Recruitment fees
- Pre-employment checks, medical testing, uniforms and work tools
- Termination payout expenses
- Recruitment agency fees (temporary or permanent staffing)
- Lost productivity in early and late stage employment (including other staff who are training new staff or covering vacant positions until filled)
- Hiring costs associated with the person doing the recruitment – the time and salary paid to the hiring manager
- Training and induction costs
- Termination administration costs
- Disruption to client/customer service
Tip: Caliper has a free online turnover cost calculator to help you estimate the cost to your business.
Support For Existing Staff
For employers we recognise the impact that losing experienced staff to injury or illness can have on an organisation.
Through Work Assist, we offer FREE support to staff members at risk of losing their job due to a non-work related injury, disability or health condition. As part of a comprehensive programme, there are four types of support that we can offer:
- Assistive technologies for people with disabilities – we can organise an Occupational Therapist to conduct an assessment of your workplace, and organise Government funding for any workplace redesign and relevant modifications. These can include aids for hearing or visual impairment, lifts, ramps, chair lifts etc.
- Non work related injuries – for staff who have an injury that is making it hard for them to do their work. We can help with job redesign, workplace modifications, the purchase of special equipment or referral to allied health professionals.
- Physical health conditions – Your staff may be recovering from a health condition such as cancer and may need help with job redesign, workplace modifications, coping strategies, moral support and referral services.
- Mental health conditions – such as depression or stress related health conditions. We can help with job redesign, job support strategies, and link with counsellors and other allied health professionals.