Employee retention should be focus for firms

As the skills shortage heightens in the Australian engineering industry, employers are being forced to find new ways in which to recruit and retain staff. Young men and women are being lured away from home to pursue engineering careers but are then increasingly leaving firms when a better offer is made, with companies left bewildered and frustrated. Labour mobility figures from the ABS show that in the year leading up to February 2007, about one-third of people aged 25-34 had changed jobs in that period.

According to David Walker, managing director of Walker Technical Consultants, one major reason for the problem with staff retention in the industry is the often regional and isolated locations graduates are sent to.

"Engineers fresh out of university are having trouble adapting to the new working and living environment after spending most of their lives in urban centres such as Brisbane and Sydney," Mr Walker said.

The high turnover rate is taking its toll on organisations whose training and induction policies are not up to scratch.

"The fast-paced nature of the engineering industry makes it hard for managers to invest time in retention schemes; however, in the long run, the effort is well worth the investment of time and resources.

"Workplaces need to change hiring policies to attract and retain younger workers - such as individual training, mentoring and flexible work benefits.

"This group of potential employees tend to rate their career development, delivery of flexible working hours, benefits and pay for performance very highly - managers need to understand and take advantage if this," he said.

Walker Technical suggests the following tips to assist in staff retention:

• Begin with a welcome letter from a direct supervisor, the owner or other leader who shares the company's vision, culture and outlook for the future, and also reaffirms the company's excitement about the hire.
• Institute a buddy system or assign a mentor to each new employee to provide the support and information needed for a smooth transition.
• An orientation program should not conclude on the first day, but rather should demonstrate a long-term commitment towards employee development.

"Today's workers are more interested than ever before in balancing work and personal life, therefore organisations that acknowledge the need for balance in their employees' lives will, without a doubt, create loyalty among their staff," Mr Walker said.

Even with the best of efforts, some employees are bound to leave no matter what a firm does, and the fact is that there are many companies offering challenging and exciting work. But when an organisation is willing to devote the necessary time, resources and energy towards cultivating and developing its most valuable assets - its people - growth and long-term success are inevitable.