Are You Fit?
With Australia at virtually full employment (95.7%) a lot of companies have trouble attracting and retaining staff. Although the problem extends to all levels – from the shopfloor to the chief executive – good people can be found and retained if companies work with the right partners. Essentially, understanding the ‘job’ market, staff aspirations, and socio economic drivers are the keys to success.
Over the past five years supply and demand has driven the cost of housing up significantly due to a housing shortage and a growing population. The economy is largely driven by the resources boom so the demand on labour at all levels is at its highest for three decades. Whilst salaries and wages have increased significantly over recent years, so too has the cost of living through housing (ownership and rental), food, healthcare, transport and education.
In these volatile times, people generally seek clear career paths, stability, the opportunity to reach their full potential, and a flexible work life balance. Employers who cannot cater for this will find their employees either leaving, negotiating, or treading water.
The third option is the least desirable because productivity is reduced and company performance suffers. It is also important to note that a significant number of employees are approached by competitors, business colleagues, friends and/or recruitment firms. Employers are often left surprised when their staff hand in their notice after negotiating a ‘better’ relationship with a new employer.
The companies that attract the talent (and who retain them) show several common characteristics. Briefly, these are as follows:
- Clear vision and strategic direction.
- High levels of communication and transparency throughout the organisation.
- A ‘can do’ and positive attitude.
- Recognition and reward for effort.
- A family culture, compassionate and caring.Companies that experience high levels (over 15%) of staff turnover can be assured that they do not exhibit these characteristics. These companies also have difficulty attracting and retaining talent. It becomes a real issue because it prevents the organisation from maximising its capabilities, instead relying on the ‘old school’ – a recipe for eventual disaster.
Moore Stephens works with organisations to assess current practices and processes and assist senior management to develop and implement human resource growth strategies. For more information please contact Geoff Dart, Associate Director, Moore Stephens on (03) 9614 4444