The Australian, October 25, 2018 (EXTRACT)
Australia’s national resignation rate has lifted to 10 per cent, as employees change jobs seeking higher pay in a period of sluggish wage growth.
Small businesses with turnovers between $5 million and $10m were the hardest hit by the trend, according to the Institute of Managers and Leaders 2018 staff retention report.
Research general manager Sam Bell told The Australian that new challenges, salary growth, flexibility and professional development are the most common reasons people resign.
“If you look at those factors, small businesses are probably disadvantaged against larger, medium-sized businesses or even publicly listed companies,” he said.
“Salary growth is difficult to support from a small business perspective and seeking a new challenge can be hard in a small business.
“A lot of businesses are reluctant to put huge amounts of money into investing back into their staff when they’re losing 10 per cent of their staff every year.”
Mr Bell said that small businesses are suffering as costs increase and revenues remain subdued, making it harder for them to offer benefits likely to retain employees.
The resignation rate among small businesses lifted from 9 per cent to 10.2 per cent. As at August, Australia’s resignation rate overall was at 10 per cent, up from 9.5 per cent in June the prior year. The report, which surveyed 272 businesses across Australia, found that 56.1 per cent of organisations are currently concerned about staff retention.