Media Release
September 3
Staff turnover modest and expected to further reduce: Report
A survey of Australian HR practitioners shows that nearly a third of respondents expect staff
turnover to decrease in the next 12 months and nearly half expect it to remain steady from
a relatively low base.
The Australian Human Resources Institute released the findings of a survey of 561
respondents this week. The staff turnover rate reported by respondents in this survey
averages 13 per cent for the 12 months just past, which compares with a churn rate of 18.5
per cent in a similar survey conducted by AHRI in the first part of 2008.
The rate varies considerably depending on size of organisation, with a high of 17 per cent
among businesses of 250-499 employees, but as low as 11 per cent for businesses with
fewer than 99 employees and 10 per cent for businesses of 1000 or more employees.
Commenting on the findings, AHRI chairman Peter Wilson AM said: “The figures suggest
that perhaps more businesses are getting recruitment and retention right. On the other
hand, the relatively low rate might indicate that employees are showing a reluctance to
move, with confidence low and wages flattening out in a prevailing mood of business
uncertainty, and significant risks of lower growth and higher unemployment next year.”
Other findings include the following:

Despite the figures, nearly half the respondents (47%) believe that turnover in their
organisation is too high.

The three top reasons respondents report on why people leave organisations are
lack of promotional opportunity (20%), poor relationship with manager (17%), and
insufficient pay (12%).

Respondents report the three most common interventions for improving retention
are better induction processes (12%), improved employee communication (12%) and
better selection techniques (10%).

Around six out of ten respondents (59%) see the brand of their organisation as a
positive retention factor, while 11% see brand as a negative.

As a way of measuring the effectiveness of retention, exit interviews are the most
common technique reported.
The full research report can be accessed on the Australian Human Resources Institute
website http://www.ahri.com.au/__data/assets/pdf_file/0006/19563/PULSE_Retention-reportFINAL.pdf
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For further information contact:
Paul Begley, National Manager, Government and Media Relations, Australian Human
Resources Institute
(03) 9918 9232
0402 897 884
www.ahri.com.au