High churn rate alarms Aussie industry

SYDNEY: Employees in the Australian advertising and media industry are resigning at an alarming rate, according to a new report by PricewaterhouseCoopers (PWC) and the Media Federation of Australia (MFA). PWC and the MFA surveyed 900 employees in the industry regarding benefits, salaries, performance-related incentives, training and staff retention issues. The results reveal that although employees enjoy high salaries and cash incentives, staff loyalty is dwindling. The lure of cash bonuses is doing little to convince employees to stay, leaving managers at a loss to figure out how to hold onto their staff. Turnover is particularly high among junior staff and middle management, with a 25 per cent turnover rate among middle managers, 50 per cent for junior media assistants and 38 per cent for junior strategic planners. The attrition rate lowers further up the corporate ladder although chief executive officers and managing directors are still jumping ship quite frequently - at the rate of 10 per cent and 17 per cent respectively. The survey results do not bode well for the future of the industry, and the recent collapse of Ansett is expected to put further pressure on turnover levels. MFA president, Peter Cornelius, said one reason for the high turnover is a lack of employee training programmes. "Most agencies don't train staff, which is an area for the industry to focus on." He suggested employee share offers as an option in reducing turnover, given the apparent unsuccessful attempts to woo staff with cash bonuses. Melbourne and Sydney boasted the highest average salaries in the industry.

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