Nearly two-thirds of Australian financial professionals intend to move to a new employer this year, mainly due to a lack of defined career paths, according to the latest eFinancialCareers survey.
The eFinancialCareers Retention Survey, conducted in April, found 62 per cent of Australian banking and finance professionals wanted to seek new positions, mainly driven by the uncertainly of career progression opportunities, the perception that higher earnings could be found elsewhere and poor recognition in their current job.
"With nearly two-thirds of employees looking to jump ship this year, the message for employers is resoundingly clear," eFinancialCareers managing director for Asia-Pacific George McFerran said.
"If firms want to keep key people, they must do much more in setting out defined career paths for them.
"Ongoing difficult economic conditions have no doubt hampered firms' ability to provide career path certainty, but unfortunately this had led to a major backlash, with employees increasingly voting with their feet and looking for greener pastures elsewhere."
The survey also found flexible working hours and better employment packages, such as childcare subsidies and healthcare, were also motivating factors.
Almost half, 49 per cent, of Australian finance professionals would accept a salary increase of between 10 per cent to 29 per cent as the minimum compensation at a new position, although the majority of respondents recognised it would be hard to secure a new position with better prospects in 2012.
The remaining 38 per cent of employees that did not plan to leave their current employer in 2012 said defined career progression was the most important factor for staying with their current firm, followed by better working conditions and satisfaction with the level of recognition for their accomplishments.
However, 41 per cent said they would consider moving employers if offered a minimum salary increase of between 20 per cent and 29 per cent. Childcare subsidies and onsite childcare facilities were the top two non-monetary factors to change employers.
"This result shows if firms are prepared to better map out career progression for their employees, with clear indicators for promotion and more flexible working conditions, it is highly likely the result will be more satisfied employees, a lower churn rate and their subsequent recruitment costs will be lower," McFerran said.
