Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


New Zealand Businesses Facing Employee Flight Risk in 2014

New Zealand Businesses Facing Employee Flight Risk in 2014, Jeopardising Success in an Improving Market

Almost six out of ten employees are seeking new roles in pursuit of higher remuneration, according to Hudson

29 January 2014 – New Zealand organisations are facing a serious business risk with almost six out of ten (58.2%) employees either actively or passively seeking new roles, according to Hudson’s Salary & Employment Insights Guide 2014.

Higher remuneration is the top reason employees are considering their options with half believing they would work even harder for a higher salary. Other main motivators for employees changing jobs include a role they are more interested in and an organisational culture that will make them happy.

Despite encouraging economic indicators – business confidence is rising, unemployment is declining and hiring expectations are positive in most regions – Hudson’s research shows employers are facing the very real risk of losing key talent and need to take immediate steps to retain staff in order to deliver desired business performance.

“Illustrating just how confident the market is feeling, nearly two-thirds of employers believe their organisation will meet or exceed targets within the next six months,” said Roman Rogers, Executive General Manager, Hudson New Zealand.

“Importantly however, this optimism assumes that organisations will have the right talent in place to achieve what they need to. With employees feeling restless and the labour market tightening, the time is now for organisations to act, to scale their businesses, secure the best talent and take advantage of the opportunities that an improving economy offers.”

“Confident hiring sends a strong message from both a business growth and cultural perspective, and will help mitigate a potential triple cost scenario: the costs of a disengaged workforce, the high costs of replacing staff and the costs of losing key talent,” said Mr Rogers.

“The impact and cost of replacing, training and up-skilling new workers is likely to be much higher than retaining and developing staff that are already performing well, so employers need to exercise sound judgement about where to invest and implement retention strategies beyond salary increases.”

While salary was the top motivation in keeping employees in their current role, a promotion (17.0%), increased professional training and development (13.3%), greater flexibility around working hours (11.4%) and increased leave (5.5%) would also entice them to stay.

When it comes to package benefits most valued by employees, money talks again with bonuses ranking highest (68.9%), followed by increased annual leave (48.6%), flexible working arrangements (37.4%), increased superannuation (35.7%) and private health insurance (35.4%).

Hudson’s research also shows there is broad acceptance across the market that base salary increases in 2014 will be required, particularly to retain high performing staff. Seven in ten (71.1%) of employers intend to award increases in line with CPI growth (2-3%).

Hudson advises that as most people are seeking an opportunity to advance their careers, skill sets and experiences, effective retention strategies include enabling employees to develop their own career paths via options such as stretch assignments, secondments to other business functions, taking on new projects, training and development. Flexible working arrangements are also popular.

“Employers have options beyond salary, but they need to assess their retention strategies and act now to retain talent. We know strong leadership impacts engagement, driving productivity and increased employee retention, so having strategies in place to ensure managers and leaders are able to lead effectively in the rapidly changing marketplace is a must-do in 2014,” added Mr Rogers.

Annually, Hudson produces tailored industry guides including Accounting & Finance, Human Resources, Information Communications Technology, Sales, Marketing & Communications and Office Support. These guides provide in-depth insights and salary analysis across roles and geographies providing a useful benchmark and negotiating tool for both employers and employees.

About Hudson
Hudson is a global talent solutions company with expertise in leadership and specialised recruitment, contracting solutions, recruitment process outsourcing, talent management, outplacement and eDiscovery. We help our clients and candidates succeed by leveraging our expertise, deep industry and market knowledge, and proprietary assessment tools and techniques. With more than 2,000 people in 20 countries, and relationships with millions of specialised professionals, we bring an unparalleled ability to match talent with opportunities by assessing, recruiting, developing and engaging the best and brightest people for our clients. We combine broad geographic presence, world-class talent solutions and a tailored, consultative approach to help businesses and professionals achieve higher performance and outstanding results. More information is available at www.hudson.com.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news