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True Cost of Employee Initiated Turnover Revealed PDF Print

The Quarry Magazine
July, 2007

In the May issue of Quarry, Mary Thompson surveyed a number of quarry managers and operators to discover what the major issues affecting the industry involved. The labour shortage was listed as a top three issue for over half of those interviewed. A common complaint is that quarries are unable to compete with the mining industry for personnel.

With many employees taking the training on offer at quarries and then deserting the profession for the higher wages on offer mine sites, this is leading to a high-degree of employee-initiated turnover. Recent figures show that employee initiated turnover is not just a problem for this industry but affects employers Australia-wide and costs the Australian economy $6 billion. 

The study, conducted by 1st Executive, reveals that over the past 19 years, there has been a gradual decline in involuntary turnover. In particular, the periods of 1991-1995 and 2001-2005 saw the steepest declines in involuntary turnover, reflecting the falling unemployment rates and Australia's ageing population. 

Andrew Thoseby, Director of 1st Executive said "there are less skilled people available in the Australian labour market, the skilled population is ageing, and therefore companies must have an increased focus on retention or else employees will vote with their feet, just like customers do."  Conversely, employee initiated turnover has increased steadily since 1987, compounding the pressure on employers to retain their existing staff. The increase in employee initiated turnover has been a more gradual increase, with the period 2000-2006 experiencing the most dramatic incline. 

"The findings further confirm that Australia's available skilled labour population is extremely mobile, is exercising choice, and employers need to be proactive in retaining their key talentif they want to keep their workforce as participation rates decline," Mr. Thoseby said. The study further reinforced the findings of 1st Executive's report on Australians' Attitudes to Work - The Great Divide, released in November 2006. The report revealed that Australian employees displayed little loyalty when it came to their current employees.  Around 75 per cent of employees said that they were planning to move in the next two years, with 64 per cent saying it was necessary for their career advancement. In order to retain employees, quarries must emphasise the positives of working in a quarry over a mine site. While not able to compete directly with the higher wages, quarries may be able to be more flexible with shifts and also offer the employee more control over where their career is headed. 

BEN HOCKING Editor 

 

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