​Resignations dip slightly but still above 10%

Analysis

​Resignations dip slightly but still above 10%

Employee resignation rates have dipped slightly over the past five years, although trends vary according to location and industry. Meanwhile, most employers are becoming more concerned about retaining good employees.

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Employee resignation rates have dipped slightly over the past five years, although trends vary according to location and industry.

Meanwhile, most employers are becoming more concerned about retaining good employees.

The 2016 Australian Institute of Management (AIM) Staff Retention Report, issued as part of the AIM’s annual National Salary Survey, contains the following key statistics:
  • The overall rate of resignations is just above 10%. Note that many other surveys cover “turnover”, which also includes dismissals, retirements and expired contracts, but this report only covers voluntary resignations.
  • Resignation rates were highest in the most populous states, with NSW/ACT having a rate of 12%, followed by 10.7% in Queensland, 9.9% in Victoria/Tasmania, 6.6% in Western Australia and 6.3% in South Australia.
  • Compared to two years ago, resignation rates have increased in NSW/ACT and Queensland but fallen in the other states, particularly in Western Australia and South Australia. The overall nationwide trend is a slight fall in resignations over the past five years.
  • Among industry sectors, the service industry has the highest rate of resignations and the manufacturing and primary sectors have the lowest rates. Resignation rates in finance, professional services and IT have shown the largest increases over the past three years.
  • Among types of businesses, not-for-profit businesses have the highest resignation rate. Small and medium-sized businesses had a higher average rate than large businesses.
  • The three most common reasons why employees resigned were: to seek new work challenges, lack of career advancement opportunities and to seek greater financial rewards. These findings are consistent with the results of other labour turnover surveys, although the latter have also usually cited problems working with management (particularly the employee’s immediate manager) as a significant reason.
Further information about the Staff Retention Report and National Salary Survey is available from aimsurveys@aim.com.au.
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