The end of the financial year and the start of the new financial year typically brings a spike in the number of resignations which poses a huge challenge to businesses as they scramble to find replacement staff. Why do we see so many resignations in mid to late June?
Staff who end the financial year disgruntled after a poor salary review (or lack of one) will often vent their frustrations by jumping on to seek on their mobile devices and pulling the trigger on “apply”.
Normally a Manager can monitor and provide guidance to disgruntled employees but the speed and ease of applying for new jobs often isolate them from such intervention. This leads to higher than normal numbers of resignations when salary reviews are done poorly or not at all.
Salary reviews are a negotiation. An increase in salary should occur when both parties recognise the increase in value that an employee brings to their company – this could be achieved by working additional hours, outstanding achievement, additional training and knowledge, etc. It should not be an automatic response to another financial year passing. Properly outlining your strategy for salary reviews will make the negotiation easier and allows you to set expectations.
Resignations in June / July are problematic because the market is hot – new financial year budgets mean your competition is hiring and your staff are suddenly inundated by new opportunities.
Candidates can give as little as a week’s notice which can leave your business exposed, placing enormous strain on other members of the team to cover the additional workload of a missing colleague.
If you encounter June / July resignations, Barclay will provide a solution that will minimise the time and disruption to your business.