Matthew Tukaki, the former head of Drake Australia, has said that employers needed to start acting in January to retain key talent, with the latest survey showing employees leaving in droves.
“I said in January when we had a significant jobs surge in the Eastern States that with more jobs coming online, employees who had taken pay cuts and reduced hours would be the first to consider leaving an organisation. The research out today is an indication that has happened, but it is not too late for talent to be retained in an organisation.” Tukaki said
Speaking at the MBA Directors Forum in Sydney last week, a gathering of the nations MBA program directors and managers, Tukaki indicated that labour force shortages and movements would be the single biggest economic issue the country would face other than a single double dip recession. Mr Tukaki also confirmed that he had taken a $30,000 salary reduction, one of the few multi-national CEO’s to do so.
Mr Tukaki said employers need to implement retention strategies to retain those people who stuck with them through 2010 – they should look at doing the following:
- If staff are on reduced wages, provide them with a date and plan on when they will be returned to work
- If staff had taken reduced hours that led to a salary reduction, again, provide them with a date and plan on whey they will be increased
- Sit down and now map out career development plans for your people – don’t keep them hanging on the future and show you have faith in them
- Map out some professional development programs, these can be quick wins that don’t necessarily cost a lot of money
“If employers think that there is an opportunity to operate the workforce leaner as profits return, only to make more money, then they will be mistaken. It can take more than $50,000 to replace a senior executive, and that’s before you cost the risk of whether or not the new person will work out. If you make a mistake on the wrong person, it can cost the business upwards of $150,000 in lost opportunity, salary and on-costs – think before you let your people leap!” Tukaki said