Employers and employees alike had a rough 2009 due to the global financial crisis.
Business leaders wrestled with tightening budgets and cost-cutting strategies.
The job landscape was vastly different to the one our 2007 Retention Review examined.
While back in 2007 we were experiencing dramatic talent shortages, last year many employees if not asked to leave, were asked to stay positive and productive despite pay freezes or cuts.
For many organisations, the focus was on streamlining operations to remain financially viable rather than maintaining employee morale.
As signs of an economic upturn begin to appear, talent retention returns to the agenda as an organisational priority.
Employees may feel their organisation was unfair or asked too much of them during the downturn.
Scary predictions of 10% unemployment, or even 7%, now seem unlikely.
In June 2009, total job ads were 51.
4% lower than 12 months earlier according to the ANZ Job Advertisements Series, but figures from the Australian Bureau of Statistics show that unemployment peaked at just 5.
8% in July 2009.
This suggests that a lot more people would have changed jobs last year if they could have.
In January 2010, Australia's jobless rate was 5.
3%.
Employees are gaining confidence and the upper hand again.
Those who reluctantly stayed put may now be about to leave.
Savvy organisations know that retaining staff to maintain capability and productivity levels at this critical juncture will best position them for financial success in the long term.
Retaining talent also saves money that may otherwise have been spent on recruitment and training costs.
These issues raise a couple of questions for leaders:

• What levers can we pull to ensure our staff stay on board in 2010?
• As we recover, what might impact high-performing and critically skilled talent to leave?

In the aftermath of the global financial crisis, the new 2010 Retention Review informs organisation leaders of the motivations behind staff attrition.
Organisations should not become complacent about retention.
A strengthening economy may mark the beginning of a mass exodus of talented staff seeking improved opportunity and conditions.
The staff turnover issues presented in this report are important to consider when creating and executing an effective retention strategy.
This report will help to ensure your organisation has the resources needed to bounce back and grow.
About The Study In analysing the reasons behind employees leaving voluntarily, we examined the exit survey responses of 1548 employees from 25 Australian-based organisations who departed in the 2009 calendar year.
The organisations range in size from 50 to 10,000 employees and include a range of industries from state government to private enterprise.
Departing employees completed an online survey that tapped into both their reasons for leaving and their general attitudes about their work environment.
Telephone interviews supplemented the online survey results in some instances.
A core component of this article is a consideration of the drivers of turnover across different demographic groups, particularly generation and gender.
7 Key Findings

1. Fewer departing employees indicate a "lack of job satisfaction" as their number one reason for leaving, selected by 10% of employees in 2009 compared to 14% in 2007.
   
2. Employees aren't happier; since 2007 there's been a notable increase in work stress and job security as emerging factors for resigning
3. Work-related stress causes more women to walk than men
4. Within employers' control, opportunity for career advancement is the most important reason behind resignations
5. Contrary to popular thinking, one's manager is not commonly rated as the "primary" reason for leaving; professional growth and development are more important
6. "Enrichment factors" are critical to Generation Y, with a higher proportion of them leaving their employer in 2009 for career and professional development opportunities than other generations
7. Women indicate a stronger propensity to leave their employer in seeking work/life balance

People Leave Their Manager: Myth Dispelled There's a widespread saying that employees don't leave organisations, they leave their managers.
However, our research tells us a different story.
Benchmarking from our exit survey shows that the behaviour and actions of the boss are not commonly rated as a primary reason for leaving when compared to other issues.
Although it can be a contributing factor in an employee's decision to leave, it doesn't rate as highly as other reasons centred on growth and enrichment.
Benchmarking allows leaders to identify unique issues of concern compared to other organisations in the wider marketplace.
Top 5 Reasons For Leaving Within The Employer's Control

1. Little opportunity for career advancement 12%
2. Lack of job satisfaction 10%
3. Lack of professional development opportunities 9%
4. Inability to balance work and life demands 8%
5. Workload-related stress 8%

Retention Can Be Linked To Four Key Themes When looking at retention factors within the control of an organisation, we have taken analysis further by grouping employee reasons for leaving into four themes, based on our own factor analysis.
These groups are described below.
1.
Enrichment Factors

• Focuses on motivators that seek to enrich the work potential of employees
• Includes achievement, recognition, skill development and advancement

2.
Home Life Factors

• Focuses on the amount of time given to work and non-work roles and the level of involvement across different aspects of one's life
• Includes work/life balance, family commitments, telecommuting and work flexibility

3.
Structural Factors

• Focuses on aspects of an organisation's physical environment and equipment, resources and infrastructure
• Includes salary, employment conditions, monetary rewards and job security

4.
Interpersonal Factors

• Focuses on employee relationships within an organisation and the need for respect, involvement and belonging
• Includes interactions between employees and their direct supervisor, colleagues and senior management

Women Resign For Work/Life Balance And When Unsupported In Their Workplace A look at the reasons why women and men resigned in 2009 reveals that "enrichment factors", such as growth and job satisfaction, played a substantial role across both groups.
This finding was consistent with the 2007 Retention Review.
Women indicate a stronger propensity to leave their employer in seeking work/life balance.
On a seven point scale, women rank this factor seven percentage points higher than men.
In other words, the average importance rating women allocate to this factor is 48% (3.
36 on a seven point scale), compared to men at 41% (2.
87 on a seven point scale).
Women also rate work stress as a primary reason for leaving, with an average importance rating of 49%.
This is more than men at 40%.
Our results show that although "enrichment factors" are the most important drivers of retention for women, balancing demands both within and outside the workplace are also essential.
Women leave jobs not because they have different motivations than men, rather because they may be unsupported in balancing their work and non-work commitments.
How do you guarantee that employees perceive work/life balance to be practical and achievable? The move towards flexible working is a significant cultural shift that centres on supporting staff and measuring outputs and achievements, rather than processes.
To enable this commitment to work/life balance, five distinct practices need to be in place:

1. Support and role-modelling from senior leaders
2. Dispelling perceptions that work/life balance policies will negatively impact career opportunities
3. Manageable workload and time expectations
4. Communication around the inclusive nature of work/life balance (flexible working options are not only for women)
5. Support from colleagues

Four Retention Tips Following Periods Of Uncertainty Despite retention taking a back seat in 2009, it's now regaining significance for organisations.
Those that chose to hold on to key staff and treat them well may now reap the benefits as other organisations lose talented employees to competitors.
As many employers will learn, their treatment of employees during times of crisis will play a pivotal role in future retention.
However, employers who treated their staff well are only half way there.
Job supply will rise and the threat of employee temptation is only a few clicks away.
For employers who were forced to respond to the downturn with measures such as forced leave without pay, retrenchments and other cuts, they may have sown the seeds of departure.
These organisations are left with no choice but to mend the psychological contract they've broken with employees.
While the findings of the Retention Review indicated different drivers of retention between women and men and across generations, the most important factor for all groups is still "enrichment": growth, advancement and recognition.
Our research suggests the following retention strategies have a workforce-wide relevance: 1.
Keep Communication Open And Transparent Communication is vital in retaining or regaining the trust and loyalty of staff during the turnaround.
Even if news hasn't always been positive and cost-cutting may have been inevitable, being transparent and authentic now will count ten-fold as organisation performance improves.
For example, a quarterly update from the CEO can keep communication open.
Talking about the difficulty your organisation and industry may have gone through is very important, especially with younger people.
2.
Don't Restrict Development Opportunities As stress and workload have increased, some staff may now feel unappreciated and overworked.
Leading organisations will focus on fostering teamwork and solidarity despite external pressures, which will ultimately forge the way to success in 2010.
Consider inexpensive, non-financial methods that can contribute to morale building without breaking the bank.
It may be as simple as praise from the boss or the opportunity to lead a project.
Skill development is imperative, particularly when hiring the next generation of leaders.
Formal and informal methods such as mentoring and in-house staff training may present new avenues for learning and growth.
3.
Maximise Commitment To The Organisation And The Road Ahead As a by-product of recognising and valuing staff, commitment to the organisation is an integral advantage among retained staff.
High levels of commitment create a desire to be aligned with the organisation.
Generating dedicated and loyal staff leads to better business outcomes.
Many organisations that protected and promoted staff during the global financial crisis are now reaping the financial and tangible benefits of a more engaged, confident workforce.
Commitment to the organisation in times of change or uncertainty can dictate the difference between employees demonstrating loyalty or looking for a better offer.
Similarly, those organisations that enjoy high levels of commitment through trying times are those that do not falter in their support of professional development and a healthy balance between work and life commitments.
Reward tenure and respect the contribution employees make to the organisation.
4.
Renew The Psychological Contract With Staff As an employer you will be very grateful to the people who stuck by you and made sacrifices with you in 2009.
You've shared the pain and now you're probably keen to share the gain.
Tell them.
Tell them that no new employee can win your trust like they have, because they have shown their mettle.
Leaving now would be like selling at the bottom of the market, right before they reap the rewards and recognition they deserve for the loyalty they've shown.