The words ‘staff retention’ echo loudly in the halls of any good business, and the topic of keeping your people reigns supreme from the board room to the back office. However, as the national talent pool shrinks, and competition heats up, Australian executives are growing increasingly concerned about losing their top talent.
In the 2019 Australia Pay Experience Report, Ceridian looked closely at what issues Australian employees are raising the most and how employers and managers can deal with these to reduce risk of employee turnover - whilst, strengthen key employee retention. According to the research, many Australian workers are unsatisfied with their job and level of pay. Additionally, many are actively looking for new roles, feel that their employers do not care about their financial wellbeing, and by and large believe that the organisations they work for are not transparent on matters regarding pay.
Flight risk of top talent should be top of mind for employers
Australian employees are known to be fiercely loyal, and according to the Household, Income and Labour Dynamics in Australia survey, the average job tenure of Australians over 25 years-old is roughly four years and five months*. However, that loyalty may be under renewed pressure, as the report revealed that 38 per cent of Australian workers are unsatisfied with their current job, and almost half are actively looking for a new job. The driving forces behind this include unsatisfactory levels of pay, a lack of job security, and uninteresting work.
Leveraging strong human capital management (HCM) technology can provide a clear picture of employee data and highlight top performers, in addition to those which may be at risk of leaving to a new and challenging role. Using this data, managers can reward high performance and actively improve the working experience for employees.
Financial stress impacting workers’ day to day
The research has revealed that more than one third of employees (36 per cent) believe their employers simply do not care about their financial wellbeing. The expectations placed upon the modern worker are higher than ever, and when coupled with issues like financial stress, the risk of top talent leaving the organisation becomes significantly greater. We know a large portion (82 per cent) are stressed to some capacity about money, so understanding how to alleviate that concern makes for a stronger position when it comes to ensuring your people stay happy.
Employee-centric programs that prioritise financial wellness not only relieve some of the daily pressures that employees face, but can also help to attract, and more importantly retain, top talent in today’s competitive job market.
Mastering pay accuracy and transparency is a must
Executives often say that people are their biggest asset, but are employers doing enough to live by this mantra? The research suggests that organisations will need to do more as it relates to pay if these statistics are going to improve. One third of respondents (33 per cent) reported receiving inaccurate pay at least once in the last 12 months, while just under one third (29 per cent) say they received their pay late.
Furthermore, the research revealed that only 41 per cent of Australian workers are completely satisfied when it comes to transparency of their pay. This uncertainty around the information available to them includes accurate industry salary averages and where they rank in comparison to their peers. Only a third (36 per cent) of Australians agreed that their company clearly communicates matters regarding pay, indicating that there is much room for improvement.
Implementing a modern payroll solution can not only change this perspective among employees, but can also create efficiencies and vastly improve the accuracy for payroll departments. For instance, our Dayforce platform was designed to make payroll simpler and more accurate by combining payroll and time in a single system, bridging the gap between pay and time, and removing the pressure and burden of the traditional payroll process. Enabling payroll administrators to access their data throughout the pay period gives them more time for reviews and audits, ensuring less rework and greater accuracy, mitigating the risk of a bad experience for workers.
Modern HCM platforms
The Australian human capital management market is among one of the largest in the world, and demand among businesses of all sizes is for technology that removes friction, engages the workforce, and builds a better overall employee experience is increasing. A rising demand for cloud-based technology, recent regulatory changes to employing overseas talent and reporting on taxation and superannuation are key drivers behind the growth of this market. For employers looking to attract and retain the best talent available, these technologies are no longer a ‘nice to have’ – they are table stakes, and crucial for organisations as they battle for the best talent available in the modern world of work.
To learn more about Ceridian Australia and Dayforce, please visit: ceridian.com/au/
Nathan Reynolds is the Australian Managing Director of Ceridian
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