Keep your A-Team grounded: identifying and managing flight risk in AU and NZ

Look, the fact is, turnover is expensive. In Australia and New Zealand, the employee turnover rate hovers around 14-15%.

According to Gallup, replacing an employee can cost up to two times their annual salary. So, even if you only have 50 staff (at an average salary of $75,000), you could lose up to $1,200,000 if 8 employees leave within a year.

It’s truly staggering stuff that just doesn’t seem to be taken into account.

At the end of the day, losing valuable team members is more than dollars lost – it disrupts your operations, dampens team morale, and probably hands your competitors a nice little advantage. Even worse, every departure represents a loss of institutional knowledge and productivity. So yes, addressing flight risk crucial for maintaining a strong, cohesive team that can drive your business forward. 

Let’s have a proper look at how you can identify employees who might be considering a change, and share strategies to keep them engaged and committed to your organisation.

Understanding employee flight risk: more than just itchy feet

If it wasn’t clear, when we talk about "flight risk" employees, we're talking about team members who are seriously considering packing up their desk plants and heading for greener pastures.

So, what makes an employee a flight risk? It's not always about money (though that definitely plays a part). Often, it's a perfect storm of factors:

1. Career stagnation: High performers want to grow. If your star player feels like they're stuck in a rut, they might start looking for a new game to play.
2. Work-life imbalance: If your team is constantly burning the midnight oil, don't be surprised if they start dreaming of 9-to-5 elsewhere.
3. Lack of recognition: If your employees feel their hard work is going unnoticed, they might look for appreciation elsewhere.
4. Poor management: As the saying goes, people don't leave bad jobs, they leave bad bosses.
5. Misalignment with company values: If your company's actions don't match its stated values, employees might decide to find an employer who walks the talk.

The impact of these flight risks? It's not pretty.

Beyond the eye-watering replacement costs we talked about earlier, you're looking at a domino effect of lowered morale, decreased productivity, and a brain drain as your knowledge walks out the door.

But don't panic – recognising these factors is the first step in addressing them. In the next section, we'll dive into how you can actually spot these flight risks before they turn into flight plans.

Spotting the signs: your guide to employee flight risk detection

Alright, so you're not a mind reader, but there are some tell-tale signs that an employee might be eyeing the exit. Let's break it down:

Employee behavioural red flags

The vanishing act: If your once-punctual employee is suddenly racking up absent days or "working from home" more often, it might not be a newfound love for their couch.

The meeting ghost: Remember that enthusiastic team member who always had ideas to share? If they're now sitting silently in meetings, they might be saving their big ideas for future employers.

The bare minimum: When an overachiever starts doing just enough to get by, they might be saving their A-game for job interviews.

The social hermit: If a team member who used to be the life of the office party is now avoiding after-work drinks like the plague, they might be distancing themselves emotionally from the workplace.

Performance metrics to keep an eye on

• Productivity nosedive: A sudden drop in output or quality of work can be a red flag.
• Deadline? What deadline? If your usually awesome employee starts missing deadlines, it could be a sign that their heart is not in it anymore.
• No passion for learning: An employee who's stopped volunteering for new projects or training opportunities might be planning their exit strategy.

Leveraging HR analytics

Now, if you're thinking "This all sounds great, but I can't monitor every employee's behaviour 24/7", you're right – but that's where HR analytics comes in handy. With the right tools (hint: like Jemini), you can spot patterns that the human eye might miss:

Tenure trends: If employees in certain roles or departments consistently leave after a specific time period, you might have a systemic issue to address.

Engagement scores: Regular pulse surveys can give you a heads-up on departments or teams where engagement is dropping.

Promotion patterns: If your high performers haven't moved up in a while, they might be looking to climb the ladder elsewhere.

Manager absenteeism: High staff absenteeism rates under specific managers can be a red flag. If Team A is calling in sick more often than Team B, it might not be about the sniffles – it could show flight risk and underlying management issues.

The power of the check-in

Once you have the data, nothing beats good old-fashioned conversation. Regular one-on-ones and pulse interviews can give you huge insights into your employees' satisfaction levels. Ask the right questions, and you might just save a falling soldier.

Of course, identifying flight risks isn't about creating a workplace surveillance state. It's just about being tuned in to your team's needs and aspirations. In our next section, we'll explore what to do with this information – how to keep your valued team members from taking flight.

Strategies to keep your talent grounded

So, you've spotted the signs of a potential flight risk. Now what? Here are some strategies that can help stop your top talent from flying the coop.

Boost engagement

Employee Recognition: Tie acknowledgments to specific achievements and company values. Public praise can be powerful – just make sure it's genuine.

Employee Growth: Offer clear pathways for advancement, cross-training opportunities, and chances to lead projects. Show your team there's room to grow right where they are.

Company Culture: Foster a positive work environment where ideas are valued, and diversity is celebrated. A strong culture can be the glue that keeps your team together.

Show them the money 

Salary: Forget good practice – performance and market rate reviews are crucial here. Don't wait for your star player to get an offer elsewhere before you realise they're underpaid.

Benefits: Benefits actually have to provide benefits. Consider professional development budgets, wellness programmes, or even salary sacrifice opportunities for long-term employees.

Flexibility: Offering flexible work arrangements can be a game-changer. Give employees some control over their work-life balance to inspire loyalty.

Invest in their future 

Mentorship: Pair up-and-coming talent with seasoned pros. It's a win-win for learning and retention.

Skill-Building: Offer training programmes and support for more education. When employees feel you're actually invested in their growth, they're more likely to stick around.

Career Mapping: Work with employees to create clear, truly achievable career paths within your organisation.

Work-life balance (seriously)

Respect the Clock: Encourage your team to disconnect after hours. Aussie has it right – employees now have the right to ignore work emails and calls after work hours. A culture of constant availability is a one-way ticket to Burnout City.

Mental health matters: Offer actual, dedicated resources for mental health support and stress management.

Give back: Offering time off for employees to support causes they care about is massively underrated. It’s a great way to boost social wellness, give them a breather from the office, and show your company’s commitment to its community.

Communication is key

Open door, open mind: Foster an environment where employees feel comfortable sharing concerns or ideas.

Feedback loop: Regular, two-way feedback sessions keep everyone on the same page. Don't wait for the annual review to have important conversations.

Transparency: Be open about company goals, challenges, and successes. When employees feel in the loop, they're more likely to feel like part of the team.

Obviously, these aren't one-size-fits-all solutions. The key is just to listen to your team, understand their needs, and finesse your approach accordingly. Up next: putting it all into action with a Flight Risk Management Programme.