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An organisation’s Human Capital is fundamental to its long-term stability and success and the retention of top talent is paramount. High staff turnover can have considerable negative consequences that include damage to an organisation’s reputation, the lowering of staff morale and productivity, and the high costs associated with having to hire and train new talent. At Halliday Marx we estimate these costs can be as high as 33% of an employee’s annual salary.
With such high stakes, a well thought out Employee Retention Strategy, when implemented successfully, can help keep employees loyal to the organisation and not seek opportunities with potential competitors or elsewhere. Here are a number of ideas we recommend:
Hiring the right people is among the most important things to do if you want your employees to stay with you for a long time. From the onset, you need to communicate your expectations, learn what the employee expects from the job, and avoid potential mismatches in skills, responsibilities, or experience. As Halliday Marx Director John Marx says “Poor hiring decisions can cause 80% of employee turnover, for example, we’ve seen new direct hires into management roles turn out to be terrible people managers – ultimately responsible for a mass exodus of finance staff under them. This is where search and recruitment specialists add serious value, we are experts at sorting the wheat from the chaff.”
Undoubtedly, having an engaged workforce is key to employee retention. A Gallup study found that 73% of actively disengaged employees and 56% of somewhat disengaged workers seek a different job. Consequently, your work as an employer should be to find out what makes employees engage, care about their job, and stick around for the long haul.
Providing a poor employee experience at the outset is a major contributor to someone leaving a company within the first few months of joining. It’s important to put in place a strategy that integrates the new hire into the company and their new team. This constitutes getting the employee excited about their function and by clearly explaining their role in the organisation and making them feel welcome. As John Marx says, “it’s vitally important to create roadmaps of progression within a company, so that employees have a longer-term vision of where they can expect to be, months and years beyond.”
Obviously, this is among the best things you can do to ensure employees stay loyal. Making someone feel valued with a competitive base salary, bonuses and commissions means your top talent won’t leave in a hurry! This is especially poignant in today’s market with wage inflation so high.
The best employees want career advancement opportunities in the form of promotions and more challenging work, without this engagement levels fall. It is worthwhile reviewing company policies to ensure employees can scale up in their careers with leadership or advanced technical roles that will motivate them to stay at your company for longer.
Thanking and acknowledging employees for their work can be a huge factor in helping the company retain top talent. This can be in the form of awards, bonuses, and other perks that motivate employees to remain engaged in their work.
A considered work-life balance is necessary for all employees. Employees with more time for leisure, personal care, and family are not just more productive, but they are also more likely to stay with the company for years to come. Ways to do this include implementing regular work hours, provide work from home/remote work/hybrid work arrangements (a mix of remote and onsite work), and encouragement to take breaks in between their working hours to get a healthy meal or a quick workout.
Two-way communication between employee and employer provides a positive environment for both sides. When employees know they are making a difference to the company and doing their best work, they are unlikely to leave you for your competition. Likewise, it’s crucial for employees to give feedback, a lack of listening can make people feel that the company isn’t interested in their wellbeing or development.
A recent study by Forbes found that 35% of people said they would be willing to work for lesser pay if their company committed to Corporate Social Responsibility initiatives. These initiatives, that need to be consistent and authentic, should be based on things your employees really care about for maximum effect.
If you would like any more advice on this topic or if you’re looking for your next role, please get in touch with our specialist team today on 020 7096 8200 or email us at [email protected]
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