Employee turnover is increasingly a challenge for Australia’s small businesses with the Department of Jobs and Small Business saying a quarter of staff leave within twelve months of starting a new job.
This churn is costing the nation’s businesses millions in lost productivity. Some studies suggest every time a business replaces a salaried employee, it costs the company six to nine months in salary.
But what if you could predict which employees are going to leave an organisation and the reasons why and take action to retain them?
Leading employee feedback company, Culture Amp has announced a new offering that will allow businesses to do just that.
Explaining the significance of this new offering, Didier Elzinga, CEO and co-founder of Culture Amp stated, “A huge part of our mission at Culture Amp has been making People Science accessible to more people, and inside more companies, than anyone else. Focusing on scale and accessibility has meant that we have an incredible amount of data to draw upon. This, in turn, is allowing us to give our clients the ability to peer around the corner so they are then able to predict outcomes and obstacles based on data and experience – and take the required action to achieve better results.”
The latest AHRI Turnover and Retention Research Report states the average staff churn rate is 18 per cent (with a range of 37 per cent of 23-26 year-olds to 6 per cent of 50 year-olds and older).
Culture Amp’s Chief Scientist Jason McPherson, said beyond exit interviews, little is known or documented around why an employee, or groups of employees, are choosing to leave an organisation.
“Our new dashboard provides a predictive forecast of a company’s employee turnover. Our proprietary algorithms sense when an employee is going to leave an organisation and uncover the reasons why. We’re giving any company—no matter their size—the ability to benefit from the patterns we’ve detected from millions of employees globally. Traditionally, this was reserved for companies with in-house people analytics and data science teams, and even then they couldn’t tap into a dataset of our size. We are really bringing predictive technology to everyone,” McPherson said.
Culture Amp passed the 2,000 customer mark last week thereby enabling their customers to have unparalleled access to their massive and ever-growing dataset which currently encompasses insights from over 2.5 million people globally.