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Staff Turnover data shows New Zealand – a multi speed economy?

The  National Staff Turnover Survey by Lawson Williams Consulting Group has once again produced some very interesting findings that will assist participating companies to better understand effective recruitment processes.

 

Staff Turnover data shows New Zealand – a multi speed economy?

Unlike previous years, both 2014 and 2015 surveys demonstrate an interesting departure from trend. Prior to 2014, an increase in voluntary turnover was always echoed by a decrease in involuntary turnover, indicative of generally positive economic performance.

But in 2014, voluntary and involuntary turnover both went down, whilst in this latest report, both have risen – voluntary from 12.6% to 14.2%, involuntary from 3.5% to 3.9%.

What has caused this change?  The simple answer is the significant variability in our economy within regions; growth in areas like Auckland and Canterbury is not reflected across all parts of the country.

The same applies to industry sector – growth in industries such as construction, tourism and wine production is countered by a depressed diary sector.

These mixed market conditions see some industry sectors continuing to experience challenging market conditions, and organisations still restructuring, increasing the levels of in involuntary turnover, whilst voluntary turnover continues at a higher level in those areas where work is readily available and people have the confidence to ‘move to improve’.

 

Turnover in the first twelve months employment

This is a key benchmark of recruitment & induction success.

Consistently across the years of this survey has been the trend that turnover in the first 12 months employment is similar to or higher than beyond 12 months employment.

In the past, we have said anecdotally that for most roles, finding the right work experience & qualifications is not the issue but assessing behaviours, motivation, cultural fit and implementing a successful induction are where the risks lie.

We understand many organisations in New Zealand have been focussed over the last few years on improving the quality of their recruitment and induction practices. In 2013 we suggested that the result was a reflection of all the good work being done in recruitment, induction, and retention. 2014 showed a 12.8% increase in 1st-year turnover and 2015 shows only a 1% increase to 19.6%.

The point to take away from this data is that your retention strategies should start on day one. Employee engagement, flexible schedules, providing a positive work environment, and setting fair compensation should be implemented and evaluated on a year-long basis.

TheNational Staff Turnover Survey by Lawson Williams has once again produced some very interesting findings that will assist participating companies to better understand effective recruitment processes.

 

The full results of the National Staff Turnover Survey are available to participants. If you would like to be part of this survey in 2016 please email penny@lawsonwilliams.co.nz