RETENTION

Staff Retention – Keeping your greatest asset.

(Paul Caracoglia - CEO, Skilled Workplace)

The current challenge amongst business owners and managers is the recruitment and retention of good employees. In the present market it seems like a game of musical chairs, with more chairs than players.

Skill shortages will only get worse as the baby boomer generation moves towards retirement, attracting and retaining staff will become even more critical in the years ahead.

Successful business managers recognise that their people are their greatest asset. If you can recruit and retain good people, you establish a competitive advantage, one that is very hard to beat. Your employees are usually the biggest investment you make in your business, and should give you the greatest return.

One thing I won’t speak about much in this article is money/remuneration. Why?

Remuneration is rarely the single motivating factor, for someone leaving, or accepting a position.

Don’t get me wrong, money is important, but if you are paying the market rate for the position, and most businesses are, then their decision is based on one or more other factors. If a person’s employment decision is based only on the financial aspect of the position, then you should seriously consider if this is the right person for your business.

So why do staff leave and what can you do to make them stay?

There are many reasons and you can’t fix them all, however, there is a lot you can do, and in most cases simple solutions will bring staff turnover down to an acceptable level. This will significantly reduce the time and expense of recruitment.

The main reasons employees leave are:

Management: This would have to be the single biggest reason people leave their job, and it’s because a person’s manager can directly affect most if not all the following reasons.

Career Prospects/Development: If you don’t have a system in place to develop an employees potential, they will find it with your competition. Government funded training is a great way to start.

Work/Life Balance: I have known people to take positions for less money in order to have a balanced lifestyle.

Over managed / under managed: These terrible cousins can clear a workplace faster than a Friday afternoon. You need to develop a good balance between necessary direction and trust/responsibility.

Unachievable Targets: Make sure the targets you set are achievable; take into account economic conditions (national and local), demographics, local competition and business infrastructure. Focus on what it takes to achieve the target rather than the target itself.

Unappreciated: Small rewards and recognition. When was the last time you stopped, looked your employee in the eye and sincerely said thank you on a job well done? Never underestimate the power of this small but often forgotten courtesy.

Induction and Training: Many new employees never receive an effective induction or an acceptable level of initial training. These employees have usually been to a few interviews, and if they impressed you then chances are they impressed someone else. They are likely to be offered another opportunity at the same time, one they may consider if you have not lived up to expectations.

What can you do to minimize staff turnover?

Exit interviews: It is essential that you conduct exit interviews with all staff that leave your employ, in order to find the specific reasons people are leaving your organisation. Your solution can then be specific, effective and implemented at minimum expense.

Recruitment:  It is a great step to get the right person in the first place. Take the time to ensure that your hiring process is systematic, objective and based on established selection criteria.

Induction/Initial Training: It is critical that a new employee’s introduction to an organisation is a positive experience that reinforces their decision to accept the employment offer.  How a new employee is inducted has a major influence on the perception that employee has of the organisation, its people and its level of professionalism. It is not uncommon for a new employee to leave within days and weeks of starting.

Career Development: Good performers can get bored once they have mastered their job role. Even small business can offer a variety of inexpensive solutions. Their may be small projects they can work on as you slowly build trust and give them more responsibility, over time this allows you to work on your business leaving operational functions to your best performers. There are many Government funded training  options to help develop employee skills. Increasing the Autonomy and responsibility a person has will in many cases increase their level of commitment. This needs to be done gradually over time but the rewards will be worthwhile.

Reward and Recognition: These can be inexpensive yet very effective. A monthly award with a plaque, recognition amongst peers, an early Friday finish for an employee who has excelled and movie tickets are a few suggestions. Never underestimate the power of “Thank You”

Flexibility: You can be innovative about how an employee can structure their working arrangements. Some options include part-time work, job share, working from home, flexible working hours and part year employment.

Many of these solutions are inexpensive to implement, yet can provide a significant return. All of these solutions will involve listening; your staff will usually let you know what they think so long as you can create the environment for them to do so. Act on this advice before the problem/s develop.

Now more than ever, staff recruitment and retention will be one of, if not the major factor in determining your business success. Businesses that establish themselves as employers of choice now, place themselves in good stead to overcome the skill shortage challenges that will most certainly intensify in coming months and years.

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