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New Report Shows Employee Turnover is Back Down to Best-Practice Percentage

Executive Coaching in Perth Attain Turnover and Retention

When any organisation is conducting business in an effective manner, turnover falls within acceptable norms. Leadership development programs and management courses can help Perth organisations create an optimum situation for retention by helping employees and management maximise their potential and by creating a workplace where rewards are based on merit. Great employees usually thrive in this kind of environment while those who are not interested in maximising their performance tend to move on.

Toward the end of 2012, the Australian Human Resources Institute (AHRI) surveyed Human Resources practitioners across Australia about staff turnover. The survey was last conducted in 2008 and provides a solid picture of the state of employee retention in Australia.

The Results

The concept of the best-practice percentage is to have a level of turnover that allows for new ideas and fresh employees, but doesn’t leave companies chronically scrambling to replace key people at inopportune times. In 2012, the average turnover rate for companies that responded to the survey was 13%. This is a sharp drop from 18.5% in 2008, when employees felt more confidence about their ability to find another job.

27% of those who responded expect turnover to increase in the next year, while 30% expect a decrease and 40% don’t expect any change. 47% of those who responded believe that there is too much turnover in their organisations, while 39% think their turnover is appropriate. 14% said that they wanted more turnover in their workplaces.

Respondents were asked some questions about the motivations and reasons behind turnover and how retention can be increased. Three reasons were most-often cited for turnover: 20% cited a perceived lack of opportunity for upward mobility, 17% cited less than ideal relationships with management, while 12% cited insufficient pay.

Respondents were also asked what they felt was the best way to improve retention. 12% felt that better induction processes were the best, while 12% favoured better communication with employees and 10% favoured changes in the selection process.

59% said that their organisation’s brand affected retention in a positive way, while 11% said that their brand increased turnover. 60% said that their organisation has an effective process for recruiting qualified employees, while 19% said their organisations didn’t have one and 20% had no opinion one way or the other.

When employees leave, 27% of the organisations surveyed use face-to-face exit interviews to gather information, while 21% use other forms of exit interviews. 25% survey departing employees while 14% have no protocol, relying instead on anecdote and word of mouth.

Interpreting the Data

As a provider of elite management courses and leadership development programs in Perth, we are pleased with the news. We feel that 12% is a workable number for organisations to develop leadership from within.

However, many theorise that the numbers are not ideal because a traumatised workforce is afraid to change jobs. While many are seeking stability instead of jumping from job to job, we see this as positive and we believe, as Chairman Peter Wilson of AHRI does, that businesses are doing a better job of recruiting, training, and retaining the right people.

How to Attain Best Practice Retention Numbers

At Integral Development, our leadership development programs, management courses and executive coaching have helped many Perth businesses attain what we see as ideal rates of turnover and retention. Our programs are based on Integral Theory, which was developed by Ken Wilber.

Integral Theory amalgamates the best of over 5,000 years of human thought, including the fields of philosophy, science, leadership and psychology. The ultimate result is a “theory of everything.”

In particular, our Integral Leadership Program helps provide leaders and managers with the tools to positively affect retention. Topics include integral leadership, being your authentic self at work, work/life balance, peak performance, coaching skills, how to motivate and inspire others, as well as the states and stages of leadership.

Attendees learn how to create an integral vision and strategy for business, develop high-performance teams and lead organisational change and transformation. They also learn emotional and mental skills and techniques to allow them to operate effectively during stressful or difficult situations.

When authenticity is built into the leadership style of management, it helps leaders create effective relationships with each other and with subordinates. This creates an environment where employees feel like there is upward mobility and that their ideas are not only welcome, but encouraged.

When an organisation’s leadership is operating on a high level, retention of the right people and “recycling” of those who don’t agree with the company mission occur naturally, rendering standard statistics moot.

Call (08) 9242 8122 to find out how Integral Development can improve your retention.

Ron Cacioppe

Ron Cacioppe is the Managing Director of Integral Development and holds a BSc, an MBA and a PhD. He has taught in the Graduate School of Management at Macquarie University, Curtin University and the University of Western Australia.

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