Statistics on employee retention issues in Australia aren't pretty. In fact, employee turnover averages at 16 per cent every year and almost half of upper management believe that number is far too high.
This data is from the Australian Human Resources Institute (AHRI) turnover and retention survey, a comprehensive report that paints a worrying picture of the Australian workforce. How deep does this problem go and what solutions are available?
The extent of employee retention issues in Australia
It's clear that solving employee retention issues is a challenge for most Australian businesses. A Hays survey of 2.6 million employees found that turnover was increasing in almost a third of organisations, showing that the problem is worsening.
The AHRI survey dug a little deeper into why these problems were occurring. Their results showed that personal health and circumstances, lack of competitive remuneration and benefits and poor career progression opportunities were amongst the most common reasons for high turnover. An organisation's poor culture and brand may also play a part in driving high turnover.
In order to address the problems, a comprehensive review of your company's structure could be necessary. But where to start?
A solution tailored to your business
To decrease your turnover the best (and easiest) place to start is usually the salary and benefits package.
To decrease your turnover the best (and easiest) place to start is usually the salary and benefits package that you offer. Offering corporate health insurance could be the best option, as it will not only improve your benefit package, but it also may have a plethora of other benefits that could help solve employee retention issues.
Research on the effectiveness of investment in employee health suggests that for each dollar spent, the return could be as much as $2.71 (or $5.81, as one study claimed). This return comes chiefly from improvements that are difficult to measure such as increased employee loyalty, improved productivity and better job satisfaction.
What's more, with the help of an expert health insurance consultant like HICA, you can easily align your plan with HR goals. Examples of this include:
- Rewarding long service with full health insurance or better cover, or
- Awarding high performing employees with health insurance.
As a foundation for an organisational shift towards better employee retention practice, corporate health insurance could be the way forward for your business. Get in touch with HICA today to find out more about how we can help you hire and retain better staff.