Even as labour markets stabilise, businesses still experience the productivity loss, cultural disruption and cost pressures that come with unexpected departures. These impacts are often quiet but substantial, particularly when teams are stretched or when vacancies take time to fill.

Unplanned turnover is very different from a flexible staffing strategy. Well-managed temporary, contract or project-based roles provide stability, support and continuity for organisations that need on-demand capability. The real issue is not movement within an unpredictable workforce. It is churn within roles that are intended to be stable.

This is where recruitment strategy becomes essential. The decisions that are made early in the hiring process can reduce costly turnover, long before a new employee begins.

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The true cost of losing long-term talent

Research shows that unplanned turnover in permanent or ongoing positions can affect both performance and profitability. Recent analysis from the Australian Bureau of Statistics reinforces this, noting that 1.1 million Australians changed jobs in the year to February 2025, and Bentleys notes that the true cost of replacing a permanent employee is believed to reach up to 1.5 times their annual salary.

The obvious costs include time spent recruiting, onboarding and training. The less visible effects can be just as disruptive. These include productivity dips as teams readjust, increased pressure on remaining staff and the challenge of maintaining consistent client service.

In cities like Melbourne and Sydney, these impacts can be more pronounced in sectors facing sustained skill shortages. Professional services, health and community care, technology and office support roles often experience the greatest strain when a permanent employee leaves unexpectedly.

These operational risks are why many employers turn to temporary staff to maintain continuity. Skilled temp workers ease workload pressure, prevent burnout and allow teams to stay productive while leaders take the time to recruit permanent talent with care.

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Why retention starts before day one

Retention becomes stronger when recruitment is built around clarity and alignment. Transparent job design, realistic job previews and accurate role expectations help employers attract candidates who understand the environment they are stepping into. This reduces the risk of early exits in permanent roles.

Employers who have refined their recruitment touchpoints often see better outcomes. Improvements may include clearer role descriptions, more consistent interview questions or better communication during the candidate experience. These steps help reduce misunderstandings and set a positive tone for long-term engagement.

Temporary recruitment supports this process by creating space. When temp staff stabilise a team, leaders are not forced into rushed hiring. This breathing room improves decision-making and helps permanent hires start with stronger foundations.

Hiring for fit and future potential

Experience is valuable, but lasting tenure often depends on values alignment, motivation and the desire to learn. Structured interviews and assessment tools can help employers identify these qualities in a consistent way.

Understanding how a candidate collaborates, solves problems or adapts to change can be a more reliable indicator of long-term success than experience alone. Temporary roles can also provide insight into these qualities. Many organisations use temp-to-perm pathways to observe fit in real working conditions before making along-term commitment.

Once someone joins the team, supportive onboarding is essential. Early clarity, steady communication and access to the right resources can help new permanent employees feel prepared and connected.

Measuring and maintaining retention success

Retention improves when leaders track meaningful indicators and use the insights to refine their recruitment approach. Useful measures include turnover rates within permanent roles, time-to-productivity for new hires and short engagement check-ins.

These data points can highlight patterns that are affecting retention, such as unclear job design or recurring skill gaps. When recruitment partners and leaders share this information, they can make informed adjustments to both workforce planning and hiring criteria.

Temporary staffing plays an important part in this cycle. By supporting teams during transitions or peak periods, temp workers help protect engagement and productivity. This reduces the risk of burnout and improves the conditions in which permanent employees choose to stay.

Smarter recruitment builds stronger teams

Reducing unplanned turnover is achievable when organisations treat recruitment as a strategic investment rather than a transactional task. Clear expectations, thoughtful processes and a balanced mix of permanent and temporary staffing can create teams that are resilient, engaged and equipped for long-term success.

WellsGray works closely with employers across Melbourne to build this balance. Through high-quality temp recruitment, careful permanent placement and a focus on long-term fit, we help organisations create environments where people can thrive and contribute with confidence.

Our team are here to help – reach out to us at reception@wellsgray.com.au

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