Staff turnover rates in small business on the rise

Staff turnover is increasingly common because the role advertised rarely marries up with the actual position.

Currently, recruitment skills within Human Resource Departments are damaging small-businesses culture. Recruitment skills are vital to ensure staff turnover rates is not systemic.

Human resources is essential to creating a culture of success and stability. Most of us would be very familiar with the statement “Human Resources are our most important asset.” My question is why so many small businesses are treating staff as easily replaceable and prepared to damage their culture, productivity and reputation. Most of the criticism must be squarely placed at the feet on the in-house human resource department or external recruitment firm. The culture of a business is directly influenced by the type of people hired and the process they adopt which is usually long winded and ineffective.

A recent survey conducted by the Australian Human Resource Institute (AHRI) states 16 per cent is the average turnover rate across all small businesses and industries in 2015. The turnover rate is up from 13 per cent in 2012 to 16 per cent in 2015.

ChitChat Recruitment agrees with AHRI survey of disgruntled staff and says that the role advertised rarely marries up with the actual position. Lack of strong people skills and metrics contributes to disillusioned staff leaving or asked to leave, creating a divisive culture of “we will find someone else to fill the position”. Here are some of the findings:

  • 40 per cent believe their workplace effectively uses data gathered on why people leave to inform retention strategies.
  • 32 per cent believe exit data is not used effectively in their workplace
  • 69 per cent report that the cost of turnover is not measured in their workplace
  • 59 per cent report turnover had a negative impact on the workplace performance
  • 35 per cent would stay for job satisfaction
  • 27 per cent leave for a poor relationship with supervisor or manager
  • 47 per cent believe effective management and leadership the most effective way for businesses to retain workers

 

One main reason turnover of staff occurs in organisations is a toxic environment and/or the duties have not been fully disclosed to the candidate before they accept the offer. And some small businesses are not really appreciating their staff. 

Founder and CEO of ChitChat Recruitment, Toula Pirone, said, “Our mantra is a far more bespoke solution to recruitment. Best person for the job is the aim, emphasising the individual’s uniqueness, not a preconceived idea just from a CV.”

This is a far more customer-focused approach which clients value and appreciate by re-educating their mindset and thinking. Our aim is to identify the best person for the job, the whole person which includes personality, adaptabilities, not just education alone as it’s too shallow and limited a view.

“We take steps to ascertain the real culture, expectations and goals to be achieved for the roles we fill, rather than just concentrating on the duties and or qualifications. The value of candidate and the history of diverse work environments whether permanent or contract roles is an area many businesses overlook.”

Peter Wilson, Chairman of AHRI said, “On the whole, the findings indicate that while a low turnover rate is highly valued by respondents, tackling turnover and retention issues is still very much a work in progress for many Australia organisations.”

Ryan Z. Makris, Founder, Service Desk Coaching

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