Retaining staff remains a key concern for Australian companies, and those with high turnovers need to examine their hiring procedures, according to specialist finance and accounting recruitment firm, Robert Half.
Robert Half director Kevin Jarvis said that despite the difficult talent market, retaining staff remains a key concern for Australian CFOs and finance directors.
Jarvis said that in a survey of 300 CFOs and finance directors (FDs) in Australia, 85% expressed concerns about losing top performers to other job opportunities in the next year.
However, it is not only top performers that companies should be concerned about losing: more than one in three finance leaders (36%) expect new finance and accounting employees to leave the company within the first three years on the job.
Jarvis said this high turnover rate can have serious implications for companies, especially when budgets are tight.
‘Turnover is expensive, both in terms of the resources that must be used to replace outgoing staff members, the reduction in productivity as new hires come on board and the toll that frequent change can take on employee morale,’ he said.
He said that when asked why new staff leave the company soon after being hired, 74% of finance executives indicated that poor fit was a primary factor.
Specific reasons included an inability to meet expectations (30%), a poor fit with corporate culture (18%) an inability to integrate with the team (16%) and the role not meeting the employee’s expectations (10%).
‘Decision-makers should be devoting attention to hiring people who are the best possible fit for the company,’ Jarvis said.
‘Businesses with a high volume of turnover should examine their hiring profiles and look for ways to enhance their candidate evaluation process.’
‘Companies can build loyalty among employees by developing an effective orientation process, setting clear expectations and providing ongoing training and feedback.’