Small business bears brunt of higher resignation rate
Australia’s national resignation rate has lifted to 10 per cent, as employees change jobs seeking higher pay in a period of sluggish wage growth. The resignation rate among small businesses lifted from 9 per cent to 10.2 per cent. Small businesses with turnovers between $5 million and $10m were the hardest hit by the trend, according to the Institute of Managers and Leaders 2018 staff retention report.
According to the report, the main reasons for resignations were new challenges, salary growth, flexibility and professional development. These factors are a bigger factor for smaller business who have lower levels of revenue and profitability and are therefore reluctant to invest more in their staff especially when they lose one tenth of their staff every year.