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New Zealand – Employers fear more than 340,000 workers could quit in 2018

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New Zealand – Employers fear more than 340,000 workers could quit in 2018

27 July 2018

New research from international recruiter Robert Half found that more than 13%, or approximately 340,000 workers based on the number of employed persons in New Zealand, are likely to seek a new job this year.

Robert Half’s research also found that more than half, or 58%, of New Zealand employers say they have seen an increase in staff turnover, defined as employees freely resigning, in the past three years with the average turnover currently standing at 13%.

According to Robert Half, despite 99% of New Zealand firms currently have in place measures to avoid staff turnover, more than half, or 51%, of New Zealand’s managers say turnover within their organisation is expected to increase over the next 12 months – with 18% believing churn will be “significantly higher”.

When looking at the measures New Zealand companies take to retain their employees, 54% have invested in training and professional development programs, while less than half have in place wellness programs (48%) and employee appreciation initiatives (43%).

The research added that 40% of employers regularly review salaries and little over one-third (37%) offer flexible working arrangements. Robert Half also suggested that organisations are missing out on valuable insights from their departing employees, with only one in five (19%) conducting exit interviews.

“High levels of employee turnover can cause any company headaches in the form of not just lost productivity and revenue, but also increased stress levels and low morale for remaining staff,” Megan Alexander, General Manager of Robert Half New Zealand said. “Because of this, it’s essential for companies to simultaneously make employee retention initiatives a top business priority and also secure a steady pipeline of skilled talent.”

“Every organisation’s success depends upon the strength of their staff which is why it is equally important for companies to have in place both a well-developed acquisition and retention policy,” Alexander said. “Employee retention initiatives are most successful if they include a mix of wellbeing and recognition programs, plus regular salary reviews and clear career pathways.”