The cost of finding new staff is expensive to a company and in a competitive candidate market, it is essential that we concentrate on keeping top talent and keep nurturing it. We take a look at two overall strategies that can help retain staff and grow your overall company culture.
Employee retention is something that should be on top of all of our minds, be that recruiters, HR Teams or Operations Managers. Just thinking of the cost of employee churn is eye-watering. You have hiring costs, onboarding, training and the lost time between the last employee and the new one getting up to speed. Then there is always the dreaded thought of them not working out and you having to start the process all over again!
The longer good employees stay, the better it is for the company both financially but also culturally. Existing employees know your company culture, they make up the echo system of the workforce, if you don't get it right (especially in management positions), changing people can disrupt the cultural balance of a company.
New Work Culture - Millennials on the Move
There has definitely been a cultural shift in how people view the longevity of their careers at the companies they are employed by. It has been cited in a 2020 Deloitte report that Over a quarter of millennials said that they plan to leave their company at some point within the next year. This is the highest percentage of all generational groups, considering millennials will soon make up most of the worldwide workforce this is something to keep in mind. Working culture has changed over the years and it is not good to look backwards for solutions. We have to understand the demographic of the future workforce and put strategies in place that will help retain these more transient, mobile workforces. So, this week we focus on two big issues, employee development and recognition!
Employee Development and Growth
As we mentioned in our blog 'How visual learning can boost your business and aid employee retention,' training and employee development are one of the most important keys to retention. Providing relevant continuous training that broadens employees' skills allows for them to move into new more challenging roles. This shows the employees that they have a career progression, that the company takes them seriously and is willing to invest time and money in them. When you invest in an individual’s success, they are more lightly to be more engaged with your company and feel a sense of belonging and loyalty. In a Linkedin document '2020 Global Talent Trends,' it was said that companies that rated highly on employee training experiences had a 53% lower attrition rate. In this document by edu-me 'Revitalize your Learning Strategy for 2021' they note that "workforce churn has risen year-on-year for the last decade, and in 2022 more than 50% of all skilled workers will need to be re-skilled in some way. In order to thrive in the future of work, companies need to proactively invest in their Learning & Development Strategy."
All individuals have aspirations; set short and long-term goals for them. Then work with them in mentoring and training to help them achieve these. If people have nowhere to head in your company and are no longer learning anything beneficial, they will start to look elsewhere for opportunities, no matter what their position. A Deloitte report found that one of the main reasons for employees looking to move companies was a lack of career progress at 37%, and 27% with a lack of challenge in their jobs. Growth, development and training are key tools for retention
The Positive Power of Employee Recognition and Rewards
The power of recognition for employees is not to be underestimated! A great reward and recognition program in your company will have a profound effect on employee retention. Rewards are a great way to express your gratitude for your employees’ hard work. There are two different flavours of rewards, tangible and intangible. Tangible rewards are financial, like bonuses or gifts. These types of rewards have a great short-term effect but never underestimate the intangible! This great article by edu-me goes into the differences Between Extrinsic and Intrinsic Motivation and the difference between tangible and intangible rewards. The intangible side of things are more like words of affirmation, praise and employee recognition, especially for accomplishments. This type of reinforcement is even stronger if the praise is given publicly. These little things go a long way. we are all human, who does not like being picked out and praised in front of their peers! Or seeing an article about them in a company or trade magazine!
Being an appreciated member of a team and having a good relationship with your manager is something you can’t attach a monetary value to. They are invaluable to a positive relationship with management and your company. Recognise your employees with promotions, pay raises, well-earned job development and praise. This tells your employees that you’re paying attention, that you know how well they are performing and that you want to invest in them and their future.
Conclusion
Both development and recognition are vital in your armoury of employee retention. Keep a look out for part 2 on other retention strategies to implement within your business.