Turnover of staff is part and parcel of any business, with research finding that 91% of the so-called ‘’millennials’’ expect to move jobs every 2 years. That could be well over 20 jobs in a lifetime!
This means it’s so important to have a workforce plan for 2020 and have a people strategy to focus on retaining your top talent. Bringing in new staff is great for new ideas and perspectives but keeping your high performing employees should at the top of your agenda.
Why Focus on Employee Retention?
To start with, by losing your talented team members you lose their input and productivity. An employee who is established and performing to a high standard are more productive. Fact. It can take up to two years for staff to reach their peak, meaning that if you lose an employee after two years, they are either just about to peak or haven’t reached their full potential with you yet. But there are further consequences to the business as well.
Employee retention is more cost-effective than continuing to recruit in a cycle of constant high turnover. It’s been found that the average employee costs £12,000 to replace, which could be invested into other areas of the business to drive productivity. In addition to the financial costs, there is the associated costs of time when onboarding new team members. Even then, you’ll need two years for them to reach their peak productivity.
The above should be enough motivation for you to implement a strong HR plan with employee retention at the heart of it. This is our specialist area and we’re going to reveal some of our biggest secrets below…
Where Do We Start?
TRENDS We’ll look at your figures to see if we can identify a trend. Are some departments losing more staff than others? If so, this will give us valuable insight to be able to identify a pattern.
WHY Do you understand WHY people are leaving? The figures above will help with knowing the trends of your employees, but we need to go deeper to know why. Exit interviews are vital. You might think you know why… but do you really? We’ve found that working on behalf of our clients helps us get more detailed insight – we’re outsourced after all so have no pre-conceived ideas about the office politics of day-to-day goings on.
ENGAGE This is so important to the whole process of retaining staff. Employees stay with companies who engage with them and give them meaning to their work. No business is too big or too small to engage with their staff. We’ll review workload and conduct regular one-to-one meetings to ensure they are engaged with the duties and align them to the overarching goal of the business. Employee engagement surveys aid the process – but the results require action. If you get feedback, act on it. No listening to your staff is a sure-fire way to helping them pack their bags.
DEVELOPMENT Team members who are on course to develop their skills and challenge their knowledge to further progress are more likely to retain their position at your company. Make them see that they have a CAREER and not a JOB. Sharing the vision and goals of the business with them and letting them know that they are an important part of it keeps people engaged. By knowing what they want from their career and supporting them to help achieve their goals places you as a good employer – so why leave if you have the support and belief from your bosses?
CULTURE We’ve done many articles on this and have carved a strong reputation in working with companies to build a positive culture in the workplace. This incorporates many factors; the way we talk to colleagues and customers, the working environment, language used, equipment, branding, tools, processes and even the type of products or services supplied. In addition to this, how the staff then behave towards the company creates the unique atmosphere found in every business. It works for attracting new staff too. As much as employers are doing their research, so are potential employees. Therefore, it’s important to look after your finest assets – your staff and future staff.
REWARDS Employees who are not recognised for a job well done or not rewarded for high performance will not be with you for long. It’s not necessarily about financial rewards. We’ve found that additional perks and benefits are just as important to salary. Building a slick rewards and recognition programme can be cost-effective. Giving extra training, performance related incentives and offering opportunities for higher responsibility can be just the motivation they need.
BE FLEXIBLE Be open about the idea of flexibility in the workplace. This could be the difference between someone staying or leaving. Everyone has different circumstances away from work so agreeing to accommodate these situations can make all the difference. Options include working from home or flexitime. It can make employers nervous, but where managed correctly it can make your talent stick for much, much longer. With cloud-based solutions available to monitor performance it really isn’t too difficult to embed smoothly.
INCLUSIVE AND DIVERSE Studies have found that gender balanced, and racially diverse workplaces can see greater performance. We work with our clients to ensure that they all have not only effective and compliant policies in place, but also strong and consistent processes that ensure we are managing, developing and recruiting our team members based on these key and imperative underlying principles, such as age, disability, gender, religion or belief and sexual orientation; to name a few.
If your New Year’s Resolution is to retain more staff and to create a positive and inclusive company culture, then we’d love the opportunity to work with you to achieve that. The New Year can be a challenging time for employers, with staff getting itchy feet or choosing the start of a year to hand their notice in and look for pastures new.
Contact us now for a free 1-hour consultation. From there we can begin to help your business by creating and implementing effective people and retention plans.
Get in touch HERE.