Staff turnover in the Victorian Treasury (A) 2004-6.1

In July 2001, Laurinda Gardner, Executive Director of Strategic Management in the Victorian Department of Treasury and Finance (DTF), received a consultant’s report on staff turnover. Concerned at apparent problems in attracting and retaining policy analysts with economic or financial training, the Department’s HR Committee had decided to study the issue, and Gardner commissioned SACS Executive Solutions to investigate and recommend strategies for recruiting staff and reducing turnover. The report revealed that annual turnover was very high among DTF staff – mostly economists and accountants – and even high among recent recruits. It showed that DTF had an annual staff turnover rate in excess of 20 percent, but found no evidence of low morale within the Department, a factor frequently associated with elevated turnover.

This human resources management case looks at how public sector organisations can understand and improve staff attraction and retention. It can also be used to discuss the relationship between human resources strategy and corporate strategy. Part A describes the finding of the SACS report, including the perception of various stakeholders, used to recommend recruitment and retention strategies.