Financial Review
Tuesday, 14th November, page 66

Managers are fooling themselves about the stability of their workforces, according to a study that found 80 per cent of Australian employers believe their staff will stay for the next two years. But 60 per cent of staff say their career demands they leave their jobs in the same time frame.

According to human resource consulting firm 1st Executive, people are leaving their jobs because their managers are out of touch. Line management is particularly to blame, according to the study, which confirms the $150,000 figure often quoted as the average cost of replacing a person who resigns. For senior sales people, who generate much of a company's income, that figure can rise to ten times their annual salary.

The study also found that challenge in a job is much more effective in encouraging people to stay than job diversity, which can result in a lack of focus.