Melbourne – November 8^th 2006.  Employee initiated turnover is costing employers up to three times a job’s salary every time an employee leaves their business.  People are leaving because Managers are out of touch with their employees, according to an independent research study into Australians’ attitudes to work published by a leading Melbourne Recruitment and Human Resource Consulting firm, 1^st Executive. 

Released today, the study, “The Great Divide”, reveals that whilst 80% of employers believe their employees will stay for the next two years, over 60% of employees believe their career requires them to leave their current jobs within the next two years. 

The report also identifies that, of employees who leave their organisation, between 40% - 60% of cases are influenced by Line Management.  With average weekly earnings at equivalent to over $54, 000 per annum, employers are spending at least $150,000 for every employee that leaves their business.  The cost for senior sales people can be as much as ten times their annual salary.  These costs are likely to increase with low unemployment, declining participation rates and an ageing population, and do not even touch on the cost of lower productivity while employees look for new opportunities.

“The study shows employers can minimise turnover if management is in touch with the needs of employees.  Specifically, employees reveal that employers fall short of their expectations in induction, performance management and work life balance”, said Andrew Thoseby, Director of 1^st Executive. “There is a consistent statistical gap between what employers say they do for their staff and what employees actually experience”, concluded Thoseby.  Other Other major findings of the report reveal:

• ·         Job diversity does not have a major impact on employee retention
• ·         Challenge in a job is a significant factor in employee retention
• ·         Almost 50% of new hires experience a failure from management to provide clear direction within days of commencing a new role.
• ·         89% of managers say that they conduct performance appraisals at least every twelve months yet 49% of employees have not been appraised in the 12 months.

The research study is available from 1^st Executive for $295 including GST.  Survey design and statistical analysis by Aremel Research Pty. Ltd.

Andrew Thoseby

Director

1^st Executive Pty Ltd

www.1stexecutive.com.au

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