How Australian employers can retain staff and top talent

Employees are starting to wonder if the grass could be greener elsewhere, with many fed up with their current work conditions.

Australian employees are starting to wonder if the grass could be greener elsewhere, with many fed up with unfair work conditions in 2023.

According to people2people Recruitment’s 2023 Annual Salary and Employment Report, when asked why employees recently quit or were considering quitting, 46 per cent indicated it was due to a lack of career opportunities, up a staggering 29 per cent from 2022.

This was followed by low pay (35 per cent), management (28 per cent), non-supportive culture (27 per cent) and stressful working conditions (26 per cent).

People2people’s group managing director Mark Smith says last year wasn’t without its roadblocks.

A lack of career opportunities is one of many reasons why Australians are leaving their jobs. Picture: iStock

“Given the uncertain business landscape in 2023, an unyielding focus on talent attraction and retention will be essential to ensure organisations continue to perform in the current market and remain in a strong position to navigate high market volatility,” he says.

WHAT MATTERS MOST

Based on the report, key findings employers need to take into consideration this year include diversity, equity and inclusion, as well as mental health, which has increased in importance by 30 per cent in the past three years.

Additionally, employees would be seven times less likely to look for a new job if there were clarity on their work priorities.

Meanwhile, 66 per cent would stay longer if it was easier to change jobs internally. This rises to 77 per cent for decision-makers. And 76 per cent of gen Z and millennials aspire to pursue side hustles in the future.

“Providing the flexibility for employees to pursue their side projects is a positive way to increase work satisfaction, engagement and increase talent retention in 2023 for the younger demographic,” Smith says.

people2people Recruitment’s group managing director Mark Smith.

“Employees’ needs and wants have significantly changed over the past 12 months and are still evolving due to the ever-changing market conditions.”

ROOM FOR IMPROVEMENT

The top areas where employers can improve their retention strategies include offering flexible work arrangements (71 per cent), increased base pay (59 per cent), increased variable pay (56 per cent), and additional training and development (42 per cent).

Smith says: “Interestingly, review of employer value proposition decreased significantly, while the desire for regular wellbeing employee surveys and increased annual leave was on par.”

Catherine Kennedy, people2people’s NSW managing director, says effective employee-employer communication is a two-way street.

By fostering open and transparent dialogue, employers can “enable employees to express their needs and expectations and help them identify the gaps where better support can be provided”.

“Recent workplace research has shown that providing clarity on work priorities, regular constructive feedback and making sure employee feedback drives change will enhance job satisfaction but also boost productivity and retention,” Kennedy says.

Catherine Kennedy, people2people’s NSW managing director.

She provides tips for employers to improve the workplace and retain employees:

• Clarity on work priorities is essential: When employees know what’s expected of them and how they can make a real impact, they feel more motivated and satisfied with their work.

• Regular constructive feedback supports employees in identifying why and how they can do a better job: This is not only a great initiative for employers to ensure work objectives are met in the future, but it will reduce stress levels amongst teams as they know their areas of improvement.

• Employee feedback should drive change: It’s not just about collecting feedback for the sake of it. Employers need to take it seriously, respond to it and show employees that their input matters.

• Support for internal promotion will boost talent retention: Employers encouraging growth opportunities within the organisation, even if it means a lateral move, reduce staff attrition rates. Many employees are hungry for career development, so giving them a path to grow within the company keeps them engaged and happy. This is also highly beneficial to employers: they retain their talent and IP and remove the need for extensive training and onboarding.