With unemployment still low in Australia, retention is a key issue for employers across all industries. 

According to the Australian HR Institute’s Work Outlook Report, the country’s 12-month average employee turnover rate was 14% in early 2024. Meanwhile, a recent report shows almost 10,000 nurses and skilled care workers left their residential aged care service between July and September 2023. 

With increased mandatory care minutes set to impact profits and productivity, putting strategies in place to improve and maintain retention in aged care facilities is essential. 

What is causing high turnover in the aged care industry?

As one study found, while the vast majority (94%) of aged care workers are proud to be part of the sector and find their role to be rewarding, the work can be emotionally draining, which can cause them to change roles regularly or leave the industry completely. Other issues such as pay, uncertainty and workplace experience can also impact retention rates. 

“A methodical onboarding process, opportunities for career growth and an inclusive workplace can make a difference to retention at aged care facilities.”

According to a 2023 study from software company IdeaGen, stress is the largest factor causing aged care employees to leave the industry at 81%. This was followed by:

• Excessive overtime/expectations (73%)
• Too much paperwork (68%)
• Remuneration (49%). 

How to improve retention in aged care

Over the coming years, the Australian Government will invest $88.4 million to continue to attract and retain the aged care workforce. Aged care employees will also benefit from a 23% pay raise delivered over a two-year period. 

In the meantime, it is up to individual employers to provide an industry-leading experience that encourages team members to stay in their roles for longer. This is especially important for facilities looking to hire talent from overseas as the ‘culture shock’ of relocating to a new country has the potential to add to dissatisfaction and increase turnover. 

Some factors which improve retention rates for overseas talent in particular include the following: 

Strategic onboarding

• • Ensure job readiness by sharing information about the workplace and local culture before a new employee arrives. 
  • Help your new employee find accommodation
  • Share a documented and systemised onboarding process rather than leaving an individual to learn on the job 
  • Support family members who travel to Australia with their partner or parent 
  • Arrange for mentors to support newcomers

Professional development

• • Create pathways for professional growth
  • Subsidise additional training and education
  • Provide KPIs and regular feedback

Rewards and financial incentives

• • Provide a bonus structure
  • Schedule regular pay increases
  • Reward team members for significant milestones (e.g. 1 year, 3 years etc)
  • Provide extra paid leave in return for dedicated service (e.g. employees ‘earn’ an extra day off per year after five years of employment)

Providing a positive work environment

• • Foster a culture of positivity and inclusivity
  • Hold regular team-building events
  • Encourage feedback and respond to it

The cost of replacing staff is significant, particularly when talent is sourced from overseas. To make your investment in an international recruitment strategy worthwhile, develop a strong onboarding process and create incentives to encourage long-term employment.

Find out the truth about international care staff.

International care staff stay longer

The aged care industry’s 10-year average retention rate is around 41 per cent. When you hire from overseas, you can improve this to 90 per cent for the first five years of an individual’s employment. 

At Global Talent Agency, we have helped our clients experience a huge uptick in retention by sponsoring employees to come to Australia from overseas. Our thorough and comprehensive process involves ‘matching’ pre-vetted candidates with roles that complement their skills and experience. Reach out to find out more.