Staff retention. Is it us or them?

Staff retention in employment services isn’t just a challenge – it’s a crisis.

High rates of staff turnover disrupt continuity, increase recruitment costs, and erodes trust with your clients who need consistent support. While many blame external factors like salaries or competition, the truth is far simpler.

Staff retention is linked to workplace culture, and culture starts at the top – with your leaders.

The cost of high turnover in employment services

The stats haven’t changed in almost 10 years – turnover rates have stayed consistently above 40% in employment services.

But staff turnover is more than just a numbers game. It carries significant consequences that go beyond the cost of hiring and onboarding new employees and the time lost in the process.

In employment services, where relationships and trust are essential, high turnover unsettles the client experience. Clients often need to rebuild rapport with new case managers, leading to delays in achieving outcomes and reduced satisfaction.

For providers, turnover drains resources. Recruiting, hiring, and training new staff require time and money. Moreover, losing institutional knowledge – the insights and expertise experienced employees bring – can set teams back months.

High turnover can also affect morale among remaining employees, who may feel overburdened and undervalued as they pick up the slack.

If you’re experiencing staff churn, stop and ask yourself, “What might be causing this? What is our culture like? And are our leaders creating a positive workplace experience?”

Culture starts at the top

Leaders are the architects of workplace culture.

While day-to-day interactions and team dynamics contribute to your workplace atmosphere, the tone is set at the top.

Leaders’ values, behaviours, and communication styles cascade down through the organisation, shaping how employees interact, feel, and perform.

In employment services, where the work can be emotionally taxing and outcomes are not always immediate, a strong, positive culture is essential to retaining staff.

Employees need to feel supported, recognised, and aligned with the organisation’s mission. And this doesn’t happen by accident.

It requires intentional leadership practices.

Leadership strategies to build a retention-focused culture

1. Communicate a clear vision and mission
Employees in employment services often choose the sector because they want to make a difference. Leaders must consistently communicate how the organisation’s vision and mission align with their employees’ roles and values.

2. Invest in professional development
A common reason for leaving a role is a lack of growth opportunities. Leaders who prioritise professional development demonstrate that they value their staff’s future. Offering training, mentorship, and career advancement pathways enhances skills and strengthens loyalty.

With 94% of employees willing to stay longer if their career development is supported, it’s clear that upskilling is key.

3. Foster open communication
Open, transparent communication is the foundation of a strong workplace culture. Leaders should regularly seek feedback, genuinely listen to and act on concerns. Employees who feel heard and respected are more likely to remain engaged and committed.

4. Recognise and reward contributions
Recognition is a powerful retention tool. Celebrate both small and large achievements, whether through formal programs or informal acknowledgments. Leaders who take the time to appreciate their teams build a culture of gratitude and motivation.

5. Prioritise wellbeing
Employment services can be a high-stress industry. Leaders must actively support their employees’ mental and emotional wellbeing. Providing access to resources like employee assistance programs, encouraging flexibility and balance, taking a strengths-based approach and modelling healthy habits go a long way in preventing burnout.

6. Be real
Authentic leadership is crucial in building trust and respect. Leaders who demonstrate integrity, empathy, and resilience set a standard for their teams. Employees are more likely to stay with organisations where they feel inspired and supported by their leaders.

7. Measuring and sustaining a positive culture
Creating a retention-focused culture is not a one-and-done effort. It requires continuous measurement and improvement. Leaders should regularly assess workplace culture through surveys, one-on-one check-ins, and feedback sessions. Metrics such as employee engagement scores, turnover rates, and exit interview feedback provide valuable insights.

Sustaining a positive culture also requires adaptability. As the employment services sector evolves and government priorities shift, so too must leadership approaches.

Staying attuned to industry trends, employee needs, and organisational goals ensures that leaders can proactively address challenges and embrace opportunities.

The Emerging Leaders Playbook

We understand that taking on a leadership position for the first time can be both exciting and daunting.

Our mission in creating this playbook was simple: to provide practical guidance, invaluable insights, and expert advice on how to thrive as a first-time leader.

Embrace challenges head-on and equip yourself with the tools to excel in your new role.

Whether you’re grappling with the weight of responsibility or seeking strategies to inspire and motivate your team, this playbook has you covered.

You will learn about:

The importance of self-awareness and making it a priority
Effective feedback and how to have hard conversations
Using rapport to build positive relationships
Enhancing your communication skills

Final thoughts...

In an industry as people-focused as employment services, retaining your skilled and compassionate staff is essential to achieving positive outcomes for your clients.

Your leaders hold the key to addressing the retention challenge. By fostering a culture where employees feel valued, supported, and aligned with the mission, leaders can build resilient, engaged, and committed teams.

Ultimately, staff retention is not just about keeping employees – it’s about creating an environment where they want to stay.

And this starts at the top.

Leaders who prioritise culture strengthen their workplaces and amplify their impact on the lives of the people they serve.

As the saying goes, “Employees don’t leave jobs; they leave managers.”
By focusing on workplace culture and leading with intention, leaders in employment services can turn retention challenges into opportunities for growth and excellence.