MORE THAN a third of managers move jobs every three years, taking valuable intellectual property and experience with them, and seriously impacting the bottom line and morale of Australian businesses, according to a recent Australian report
MORE THAN a third of managers move jobs every three years, taking valuable intellectual property and experience with them, and seriously impact the bottom line and morale of Australian businesses, according to a recent Australian report.
The Hudson Report, which surveyed more than 7,500 employees across all major industries, found that 39 per cent of managers move jobs every three years and even more alarming is that some 12 per cent are regarded as ‘chronic movers’, having changed jobs at least three times in as many years.
The impact of high staff turnover is financially damaging enough, but when it is happening at management level the ramifications are far greater, according to David Reynolds, general manager of Hudson Human Capital Solutions.
“Managers possess sensitive and strategic information that they take with them when they leave,” he said.
“And the cost to the organisation is enormous when you consider the loss of leadership and experience, the impact on morale and the disruption to the team, not to mention the financial cost.”
The report highlighted the importance of retaining people and the financial impact of losing staff, citing research which found that the cost of replacing one person from outside the company is at least 150 per cent of the leaver’s annual salary and benefits.
“Managers are often seen as ‘self-managers’ and are sometimes overlooked in their requirement for mentoring and guidance,” Reynolds said.
“The reality is that they too have a need for a strong relationship with their manager, and recognition of their achievements, if they are going to remain committed to their work and their employer.”
He said a good place to start was ensuring that senior management presented and communicated clear and relevant opportunities for managers within their organisation, which would assist in dispelling the myth that the best path to career advancement is through an external job move.
The Hudson Report analyses the hiring expectations of Australian employers each quarter, and provides insights into a range of topical HR issues impacting business. Results from the Q3 2004 report were based on 7,573 surveys with employees from Australian organisations.
