Staff Turnover: Friend or Foe to Australian Business?

Staff Turnover in Australia: Friend or Foe to Your Business Success?

“The grass is always greener on the other side”. This is a Figure of speech that relates to all industries, reflecting the twists and turns of industrial life that can make you feel abandoned or left behind. Australia’s business landscape is developing rapidly, but this growth brings many challenges. One of the challenges in Australian business is high staff turnover and retaining loyal employees, which entrepreneurs worry about because it impacts the sustainability and stability of business operations.

Are you one of the many entrepreneurs who feel this way? If so, you need to understand more about the root of the high staff turnover problem and how to solve it.

This article identifies the root causes of high staff turnover and offers strategies to overcome them through effective recruitment.

What is Staff Turnover? And What’s the Impact On Businesses?

As an entrepreneur, it is crucial to understand the significance of staff turnover and its impact on your business. Staff turnover, also known as employee turnover, refers to the departure of employees from a company within a specific timeframe.

While it is common for employees to leave when their contract period ends, what if they choose to resign repeatedly over multiple periods?

This can be quite exhausting for your company’s Human Resources department, as they will constantly need to find ways to fill vacant positions with new hires, repeatedly train new employees, and allocate a significant amount of resources towards recruitment efforts.

These measures are taken to ensure the smooth functioning of your business operations. However, achieving stability becomes challenging when your company is confronted with high staff turnover.

Identifying the Root Causes of Staff Turnover

“The grass is always greener on the other side” is a sentiment shared by many employees.

Some factors influence their decision to leave their current company and seek employment elsewhere. To gain a comprehensive understanding, let’s examine the data analysed by the Australian Bureau of Statistics (ABS).

Source: Australian Bureau of Statistics (ABS)

In February 2023, the ABS released Job Mobility data, which indicated that approximately 2.3 million individuals had left their jobs in the preceding 12 months. Among them, 3.2% departed with the intention of securing better job opportunities or simply desiring a change.

Furthermore, the Australian HR Institute (AHRI) conducted research and found that the primary reason for employee departures was the lack of opportunities for career advancement within their current companies.

Another significant factor contributing to employees leaving their organisations was the allure of higher salaries offered elsewhere.

Based on the findings of the research data, it is apparent that employees have different reasons and motivations for discontinuing their employment with a company.

Taking a closer look at these reasons is essential. What leads employees to move on to new job prospects or seek a change in their current role? Here are some factors that play a role in this decision.

1. Limited prospects for career advancement within the company.
2. An unfavourable work culture and management style.
3. A sense of detachment from their work.
4. A misalignment between personal goals and the company’s vision and mission.
5. A lack of opportunities for skill enhancement.

By considering these factors, entrepreneurs can devise a suitable strategy to decrease high staff turnover and boost employee loyalty. Employee loyalty is essential for sustaining a more reliable business continuity.

Loyal Employees: The One Asset Every Leader Needs

Retaining talented employees is critical to the success of any business in today’s competitive Australian job market. Loyal employees are essential to realising the company’s vision and mission.

Loyal employees do more than just stay with a company for a long time. They invest in the company’s success and go the extra mile. They deeply understand the company’s mission and values and actively contribute to a positive work environment.

Here’s why cultivating loyalty should be a top priority in the strategy of every business leader in Australia:

• Cost Savings in Hiring

By retaining loyal employees, companies can significantly reduce costs associated with recruiting, training, and lost productivity.

• Enhanced Employee Performance

When employees show loyalty by upholding company values, they are more likely to be actively involved in their work, leading to increased productivity and stronger decision-making skills. Additionally, they tend to engage in knowledge sharing and collaboration, which helps to cultivate a culture of innovation.

• Strengthened Company Branding

Loyal employees serve as strong advocates for your company. When they speak positively about their experiences, it attracts top-tier talent, elevating your brand to new heights.

• Positive Impact on Client Service

Employees who are loyal and dedicated to the company’s vision can channel their enthusiasm into delivering exceptional service. This builds trust and loyalty among clients, ultimately driving profitable business outcomes.

Retaining skilled employees can lead to various advantages for a company. In the current competitive environment, loyal employees play a crucial role in the stability and growth of the company.

After this, you may still be wondering how you can solve this problem. Let’s find out more about how to overcome it.

Overcoming Staff Turnover with Sponsorship Recruitment

What methods do you use to recruit at your company? If you are still placing job ads in newspapers, job boards, or relying on word of mouth and conducting walk-in interviews, it’s time to update your recruitment method!

A more appropriate option for overcoming high levels of staff turnover is implementing modern recruitment methods, such as recruiting migrant workers through sponsorship.

What is Sponsorship Recruitment?

Sponsorship recruitment is a recruitment alternative in which a company cannot find a permanent resident or Australian citizen to fill a job position.

In such cases, the company can then recruit foreign workers by providing sponsorship using a temporary skilled or permanent visa. There are various skilled visa options, each with different employment rights. Some visas require the applicant’s prospective employer to be an approved sponsor.

Why is Sponsorship Recruitment Effective in Australia?

Sponsorship recruitment, where employers sponsor visas for skilled migrant workers, is effective in Australia for a couple of key reasons:

• Filling Skills Gaps

Australia, like many countries, faces shortages of skilled workers in certain sectors. Sponsorship allows employers to tap into a global talent pool to find candidates with the specific qualifications and experience they need. This can be especially helpful for niche roles or those requiring unique certifications.

Related: Labour Shortage in Australia: How to Solve It? 

• Access to a Wider Talent Pool

Local recruitment might limit your options. Sponsorship broadens your search beyond Australian borders, giving you a much larger pool of potential candidates with diverse perspectives and experiences.

• Potentially Higher Retention:

Sponsored workers who have gone through the effort to relocate for a specific opportunity often demonstrate greater commitment and loyalty to the company, potentially leading to better retention rates.

What are the Benefits of Sponsorship Recruitment for Australian Businesses?

• Enhanced Cost Savings

Sponsorship recruitment allows companies to minimise excessive costs associated with frequent staff turnover.

• Enhanced Recruitment Effectiveness

By leveraging established networks and partnering with recruitment agencies like Neurone, which specialises in sponsorship recruitment, companies can expedite the hiring process and mitigate the chances of making incorrect hiring decisions.

• Elevated Hiring Standards

Employees’ recommendations of individuals who share the company’s culture and values contribute to improved employee retention rates.

• Heightened Employee Involvement

Sponsorship programs empower employees and enable them to play a significant role in the company’s achievements.

Staff turnover can be a challenging issue; however, utilising sponsorship recruitment presents a promising solution. By engaging in recruitment sponsorship, you can discover top-tier candidates, reduce expenses, and cultivate a more dedicated and committed team. This method of recruitment is a strategic way to establish a strong and thriving workforce amidst the competitive landscape of the Australian job market.

Neurone as Your Partner for Sponsorship Recruitment

Neurone is a Perth-based Recruitment Agency with years of experience and expertise. Our services have assisted hundreds of Australian businesses secure highly qualified and experienced workers.

At Neurone, a recruitment agency, we provide solutions to help you find high-quality candidates from a talented pool. Neurone assures you access to the best candidates in the market from which you can choose. Our primary goal is to provide you with the most satisfying recruiting experience. Our services guarantee the performance, loyalty, and motivation of our talents.

Neurone is committed to ensuring that your organisation benefits from your new hire. We employ unique strategies to minimise the risks of bad hiring and ensure that no unwanted personnel are added to your business.

You can contact us via email at [email protected] or phone at 1300 045 809, or you can send the details here.