In today’s fast-paced job market, many Australian businesses are concerned about the apparent decline in employee loyalty. It's true that employees don’t seem to stay as long as they once did, but is this a shift in the workforce, or simply the new norm?
Let’s look at the numbers: The national average tenure for employees in Australia is just 3.3 years (around 3 years and 4 months). With voluntary turnover sitting at about 15% per annum, this marks a significant departure from the past expectation of lifelong employment with a single employer. In fact, the average Australian is now likely to hold three jobs per decade.
According to the Australian Bureau of Statistics, as of February 2024, there were 14 million employed Australians. Of these, more than half (57%) had been with their current employer for less than five years. Interestingly, 19% had been with their employer for less than a year, while only 10% had been in the same role for 20 years or more. Furthermore, the number of people staying in their job for 1 to 4 years has increased, rising from 35% in 2023 to 39% in 2024.
So, why has employee loyalty seemingly disappeared?
The shift toward shorter job tenures may initially seem alarming, but it's important to consider the bigger picture. Factors like the rise of flexible work arrangements, an increase in job opportunities, evolving career expectations, and a strong desire for work-life balance are driving this change. Job-hopping has become an accepted part of the modern workforce, with many employees seeking roles that offer growth, better compensation, and alignment with their personal values.
While Australian workers may be changing jobs more frequently than previous generations, businesses shouldn’t view this as a negative trend. Instead, it presents an opportunity to rethink how to retain talent. By creating a supportive environment, encouraging career development, and providing incentives that align with employees’ values, you can build a workplace that fosters long-term commitment and loyalty.
Retention should be an ongoing focus of your HR and staffing strategy. It costs significantly more to recruit new talent than to retain existing employees. As the workforce continues to evolve, companies that succeed will be those that embrace change and adapt to the new expectations of their teams.
Fostering retention isn’t just about keeping employees—it’s about creating an environment where they want to stay. For more tips, tricks and advice on hiring for your team explore our other blogs.
Commentaires