Worried about losing staff at EOFY?
It’s that time of year which means getting the books in order, reviewing last year’s budget and planning ahead for next year. If you have a team this can also be a high risk time of year to be left in the lurch if one of your employees resigns.
So, why do people quit at this time of the year?
- Pressure on the team
This is usually a very busy time especially if your staff are directly involved in the end of financial year process. You need to ensure that you have enough resources so that your team doesn’t suffer burn out. This could lead to a resignation if your staff feel that they are having to put in extra hours, or take on extra work because there aren’t enough staff, or if the EOFY process has been badly planned or managed. It’s certainly not a good time for an employee to leave as it will then put even more pressure on your team who will need to cover the additional workload of one less colleague.
- Activity in the market
Traditionally many companies will get their recruitment in order for people to come on board on 1 July, this means that there are a lot of roles out there and you may find that your staff start applying to your competition if they are hiring. If they secure a role to start in the new financial year this will mean that you will be left in the lurch and need to find a replacement quickly. You may even be in the situation where a member of your staff is head hunted and made an offer that they just can’t refuse.
- Salary and performance reviews
EOFY is often the time when organisations conduct staff reviews and therefore may also be a time when your staff become unhappy. They may fail to secure a salary increase, promotion or the recognition they feel they deserve. They may also become disgruntled if the process isn’t a smooth one or if they feel it hasn’t been conducted well or taken seriously. Or perhaps it hasn’t been done at all. This is another reason why you may be left with a resignation on your hands.
So how can you minimise the impact of staff leaving at this already stressful time of year?
The best way of course is prevention, by understanding what will be required of your team at this time of year you can make sure you have effective processes and enough resources in place to take away some of the pressures. If you find you have gaps in your team you may want to hire a contractor. Make sure that you take the time to develop a valuable and worthwhile performance review process. Ensure that you properly outline your strategy for salary reviews which will make negotiations easier and allow you to set clear expectations. Review your processes, conduct staff surveys or meetings and ask your team to suggest areas for improvement. Not only will this help in streamlining your processes it will also demonstrate that you value their input and take their ideas on board.
If you think you may need extra staff for the next financial year, start your recruitment process now. There will be a lot of activity in the market and if you leave it too late you may miss out on those candidates that have already decided to make a move.
If you wanted the recruitment spend to fall into this financial year, we have the perfect solution. All our recruitment services attract an upfront fee so you can pay for your hire now even if they don’t start until next financial year. This way you can realise the tax benefits for the current fiscal year so that you can better plan the next one.
And don’t forget if you want your employee superannuation contributions to fall into this financial year make sure they are processed by 26 June 2017 to ensure the super fund has received it by the June 30 deadline.