Employer Resources
Staff Retention – becoming an employer of choice
It is now widely accepted that the common denominator in highly successful companies is the retention of good people and the creation of a workplace that facilitates that. Now more than ever it is acknowledged that the people within an organisation are its greatest asset and they hold the key to organisational success and profitability.
In light of this it is vital that each organisation be aware of staff turnover and the costs associated with it, not only in direct dollars for the recruitment process but also in lost productivity & importantly, reduction in staff morale. Retention strategy is an important part of the operational planning for business today.
Retention strategy for current employees can basically be broken into three areas – Reward & Recognition: Career Advancement and Development: Work/Life Balance.
Each individual company will have different approaches to retaining staff. If management attitude is aligned with the three areas of retention, results can be achieved and policy can be implemented to maximise staff retention.
The most important aspect of retention policy is to approach it on an individual level, especially for high performers and key employees. Each employee will have individual aspirations and priorities, thus it is important to identify these in order to effectively cater to their needs.
Reward & Recognition is a broad but basic category encompassing many ideas including: incentive schemes with financial rewards such as commission, bonus or profit share and shares schemes. Promotion, granting additional responsibility and general praise all assist in the management of those employees who are motivated by job satisfaction. Try to use a variety of strategies rather than just financial ones to avoid making ‘it all about the money’. This is rarely the only factor involved in maintaining staff morale and in the final analysis retention policy based on this alone will not work and will result in a decrease in staff moral.
Career Advancement and Development is of great importance as lack of career advancement is the primary reason for staff turnover, particularly in professional organisations. Be sure to identify the ambitions of your people, especially your key employees, and it is a good strategy to have frequent (perhaps twice a year) meetings with them to discuss their future and how they see their ambitions advancing the company. Help them to set short term goals which identify milestones on a career path and ultimately to lead them where they want to go (within the constraints of the organisation). Those staff members who are driven by achievement will appreciate your time and will respond to having defined goals and an achievable ambition.
Work/Life Balance is increasingly becoming a great strategy in assisting staff morale and retention. Business is now recognising that supporting people with their families and life leads to happier, more relaxed and more motivated staff. Genuine interest & concern in staff members from management and a flexible approach to work conditions has vastly improved morale in organisations that facilitate it. Obviously, this strategy will need to operate within the constraints of the business, however, flexible time & work from home options are worth considering. Overall, a flexible and sincere attitude toward employees’ families and life will allow for conditions that facilitate a satisfactory and improved life/work balance, therefore leading to greater motivation. Once again it is important to identify what is important to individual staff members and be open to the ideas they present. You will find that they know the business and the constraints and will usually be reasonable in their suggestions with regard to achieving a work/life balance. It may be as simple as allowing someone to finish early to attend a child’s sporting match one day and them starting early another and it will make a huge difference in the levels of employee contentment and therefore retention and motivation.
Finally, develop a business that works towards the goal of being known as an ‘employer of choice’. Organisations quickly develop a reputation for the way they treat their people and those recognised as having relevant HR policies will attract the best people and keep them happy, thereby resulting in good retention rates. Make communication the most important role of HR management. Sincere communication and awareness of staff morale is vital. Work toward a culture that rewards achievement, identifies motivational issues and shows genuine concern and interest in its employees.
