Worried about employee turnover? You’re not alone.

According to the latest KMPG report, talent is the number-one issue keeping Australian leaders awake at night–and for good reason. Mercer forecasts suggest employee turnover in 2022 could reach 19.5%, or 2.6 million people!

2022 was the year of the great resignation, reshuffle, realignment and reassessment. Whatever you call it, many employees are leaving their roles behind to pursue career growth or a new lifestyle. As teams dwindle, it’s now more important than ever that organisations prioritise employee retention.

With a clear, actionable employee retention strategy and a proactive employer brand, it’s possible to keep the best talent in your team, helping your organisation overcome the challenging times we live in and pursue new goals every day. 

What’s the score right now?

Post-pandemic, the industry landscape is changing. In 2021, 1.3 million Australian employees left their jobs, with this figure set to double in 2022. 

Studies show that turnover rates are hitting white-collar industries hardest, with 22 percent of professionals walking off the job in 2021, compared to just 9.5 percent in the total workforce. Even the strongest organisations with the most engaged workforces are losing people, with 69 percent of leaders saying that they can’t hire talent fast enough.

Why is this happening, and what does it mean for an organisation like yours?

The drivers of change

With so many people planning to start over in a new job or even a new industry, it’s important to understand what’s driving this mindset shift.

Following long periods spent in lockdown, employees have had a chance to think about what matters to them. No longer are workers content to put up with less than perfect conditions when they can pursue opportunities that allow for flexibility and an improved work-life balance.

People want better. The modern employee is looking for work for purpose, wanting to be a part of something meaningful. Work isn’t simply a job these days. People want to plan to make an impact and join organisations they can be excited about.

What high turnover means for organisations

For organisations, high turnover rates are a problem, leading to labour shortages and productivity losses. In the worst cases, organisations may struggle to fill empty roles and have to cut back on professional activities. 

Many leaders fear that employee turnover could destabilise company culture and disrupt professional development. With an unpredictable or incomplete team makeup, it can be difficult to plan for the future or pursue new goals.

How you can drive employee retention

What’s the solution? Organisations need new ways to enhance employee experience and drive retention efforts. To do this, you need to understand and apply what matters to talent. 

Employees are looking for organisations that prioritise balance, well-being, and growth. In the past, people built their lives around their work, but now it’s time for work to adapt to people’s lives.

Evidence suggests that people are 2.6 times happier when their employers focus on well-being and flexibility. Up to 88 percent of employees are looking for organisations where they can make their own choices about time, location, and even workflow.

Employees don’t want jobs; they want careers. People are seeking interesting, impactful work where their opinions are valued and where they can expect to learn and grow over time with the guidance of strong leaders. 

As an employer, you need to provide your team with the work they need. Ask your employees what they want to do and how they want to learn. Develop a positive, supportive culture. Talk about development and growth regularly. Ensure open, transparent communication, inspiring your employees to go above and beyond, progressing their careers and driving improvement at your organisation.

Leaders and employers have an opportunity to design the organisation with a people-first approach. Personalise your culture, your communication, and the benefits you can offer to help curate employee experience and make your organisation the best place to work. 

Building employee engagement and developing your employer brand isn’t easy, but it is worthwhile. If you play your cards right, you can do more than just retain your existing team. You could make your organisation a talent magnet, the place people leave their jobs to join. 

What next?

Don’t wait to get a headstart on employee retention. The more you do right now to engage, retain, attract, and delight your people, the better equipped you’ll be to maintain the top talent in the industry.

Want to learn more about how to optimise your employer brand? Visit the Heart Talent EB blog to read the latest insights.