Challenges and strategies for retaining employees in your company
There is a new business battleground: retaining talent. Companies are competing not just for customers, but also for talented employees. here are currently more jobs available than qualified job seekers. What does this mean? The best talent is already employed.
These talented individuals are working. They are also quitting. T. Strong economies cause this kind of spike because workers have more employment options. Competition is high, and the fight is on for companies to recruit and retain their share of qualified talent. The facts are 76% of CEOs rated “retaining existing talent” as the top management challenge. Others cited “attracting qualified talent” as one of their top concerns.
Alarmingly, 40% of workers plan to look for a new job within the next six months, and 69% state they are already looking. For employers, those figures are frightening. As a company, you work hard to hire the best workers carefully, and once they’re hired, you want to keep them.
When a good employee leaves, workload increases, productivity sinks and morale can suffer. Additionally, recruiting, training, and onboarding new hires can be difficult and costly. The solution is to focus on retention. Keep your employees happy, so they don’t leave. Before implementing an employee retention plan, determine why valuable employees are leaving your company. Here are some of the most common reasons employees jump ship to new employers:
What is an “engaged” employee? These people are enthusiastic about, inspired by, involved in, and committed to their jobs. When employees are emotionally connected to their work, they put forth the extra effort. Gallup has been surveying employee engagement for the past 17 years.
Companies perform exit interviews to learn why employees are leaving. Consider conducting “stay interviews” with your most tenured employees. Ask them why they stay. Why did they come to work? Why have they stayed at your company? What would cause them to leave? Do they have any non-negotiable issues? What changes or improvements would they like to see? As a company leader, you can use this information to strengthen your engagement and employee-retention strategies.
Employees want to feel valued. You can show you value your employees by acknowledging and addressing their concerns or suggestions. Listening to feedback, taking action, or simply explaining why their suggestion isn’t possible goes a long way.
Managers should be meeting with employees regularly to discuss their career goals and job satisfaction. Once per year, performance reviews are the bare minimum. Experts agree more frequent interviews are much better, especially with millennials.
As a manager, show that you value your employees. Simply acknowledging their contribution and saying ‘thank you’ can make a big difference.
This doesn’t mean you have to compliment employees constantly. But, if someone does a great job on a project, be sure to recognise them for it. Companies that have a strategic recognition program observe less employee turnover.
If employees sense they’ve hit a wall or can’t see a future in your company, they’ll look for other opportunities. If you can acquire new skills and progress in their careers, they are more likely to remain loyal.
Career development and mentorship appeal to the most talented employees. Many times, career development programs encourage employees to stay rather than leave for another company. Remember, your best employees want to learn and grow. Unless they can try new opportunities, take on challenging tasks, and attend seminars, they will stagnate. A skilled, career-oriented employee needs growth opportunities within your company to reach their full potential. Allow your employees to explore opportunities inside your organisation. Learning something new through a cross-functional project, leading or participating in a “lunch and learn,” will increase value and creativity. Don’t be afraid to stretch people with assignments that will expand their knowledge and sharpen their skills.
Time, tools, and training should be your friend. If an employee is failing at work, ask, “What about the work system is causing the person to fail?” Employees need to have the necessary systems, procedures, and equipment to do their job well. If they don’t, they will move on to a company that provides the tools needed to succeed.
Keeping your technology and training up to date engages employees in the direction of your company goals.
Most people want to work somewhere with a strong corporate culture, one that clearly defines its mission and has a set of values that every employee, from the CEO on down, has bought into, believes in, and is tracking to. Have a robust set of corporate values, a mission statement and specific goals. This will help direct employees’ energy and allow them to see how their contributions are part of the greater whole.
Giving attention to employees’ struggles to manage work and home life will go a long way toward keeping top talent. Little things that emphasise the importance of work-life balance go a long way toward making employees feel that they’re not just disposable cogs in a wheel, but a valuable asset to the company, and their families. There is a talent shortage, and you’re going to have to give a little to be able to retain top talent.
Research from Dice.com reveals telecommuting is the most-wanted benefit among tech pros. Sixty-three per cent of respondents to a separate Dice snap poll indicated they would be willing to take a pay cut to telecommute at least half the time.
This is a major demand we see from talent, and for organisations that can’t compete on salary to get that elite tech talent, offering remote and telecommuting options — even just part of the time or a few days a week — means they’ll be able to land those great hires. Acknowledge that your employees have a life outside of work. If you consistently have them come in early and work late, they will inevitably start looking for another job.
The ability to work remotely has enabled people to work without having to go into the office. Remote work provides the kind of flexibility that employees want. This does not mean they won’t work the same number of hours, but they can instead manage their work outside of regular office hours.
The starting point is hiring the right person for the correct position. The starting point is hiring the right person for the right place. Consider using the Predictive Index or Strengths Finder to ensure job candidates have the necessary skills and personality.
Companies that provide valuable benefits to their employees are more likely to keep them. Many surveys reveal that health benefits are most important, followed by retirement funds. With healthcare costs rising, a strong employee health benefit plan is essential to recruit top talent.
Employees look for ways to plan retirement. Employers can help contribute to savings by offering a 401k match. This is an excellent motivator for joining and staying at a company.
Companies that provide generous paid off-time avoid burnout and retain their employees more successfully. Employees appreciate being able to take a break without being punished. Often they value this more than a higher salary.
To hire and keep the best, you should pay the best. Not a ridiculously high salary for these people. However, pay that is at or below the market rate for the position tells employees, “you are not truly valued.” It’s worth considering structuring your pay scale from 20% to 40% over the market rate.
Talent can be your biggest asset or your most significant expense. According to Investopedia, it takes an average of 6.2 months to train a new employee to the break-even point. Though you will never eliminate employee turnover, following these strategies can help you keep your best.
Small business owners in the Australia tend to have one thing in common: Their employees are part of one big, extended family.
Being part of the family means more than having an emotional connection with employees. Two in five employers said they would share lottery winnings with their employees. Another one in five would donate a kidney to an employee in need.
No matter the stakes, employers care deeply about their teams’ well-being. The QuickBooks survey revealed three more surprising insights on how far small business owners would go to help their employees.
Typically, small businesses have smaller teams, making the “family” feeling all the more real. And, because they work with their teams closely, employers understand the importance of work-life balance. For many small business owners, maintaining that balance has become a priority when managing their teams.
Employee work-life balance is a common theme in the survey. Overall, 98 per cent of business owners agree that healthy employees are more productive employees. Perhaps, that’s why one in five would be willing to donate a kidney to an employee in need. They understand the value of their workforce – and some will go to great lengths to ensure they’re healthy.
In addition, many business owners would go out of their way to make employees feel comfortable at work. Three in five encourage their employees to take personal or mental health days. Another eight in 10 treat their employees to a combination of snacks, meals, and gift cards. More than half have done personal chores or run errands for their employees … now that’s going the extra mile.
Many business owners worry about making staffing mistakes that might impact their teams negatively. For example, two in five employers worry about losing good employees to jobs that offer better benefits, and one in three business owners says they would instead take a cut in pay than lay off workers.
Business owners aren’t just worried about losing employees; one in three worries about the consequences of hiring the wrong people. When it comes to small businesses, hiring for culture fit is often a top priority that leads to business growth. Yet, half of the survey respondents said they lack confidence in hiring, and more than 70 per cent said they care as much about an applicant’s personality as they do about their skill set.
Over 80 per cent of respondents said they care about their employees’ financial health. This illustrated another theme in the survey: the importance of their teams’ financial stability.
Small business owners worry about the ripple effects of making financial mistakes in their business. Small businesses operate on tight budgets, so the margin for error can be narrow. Add that to the pressure to keep everyone happy, and it’s no wonder small business owners stress over mistakes.
More than 63 per cent of respondents worry about running late or inaccurate payroll because it would hurt their employees. Another 31 per cent worry about receiving penalties from filing late or erroneous payroll taxes. For the majority of business owners, the pressure is on to get things right the first time.
Bringing seasonal candidates on board to enhance your workforce can result in many unique challenges, including those presented in 2020 by COVID-19 and whether it’s your first time to tap into the seasonal hiring pool. You may opt for seasonal employees for many reasons; maybe your business improved at a certain period of the year or perhaps your need to fill the gap left by full-time employees who have taken holiday breaks. Whatever the reason, here are five things to keep in mind when hiring seasonal employees.
Before diving in, let’s first consider the impact COVID-19 will have this year on seasonal employees who will work with you in person vs. virtually. Here are some best practice guidelines to follow:
Experts can help you work through the many laws, policies, and regulations associated with tapping into the international labour markets for seasonal employees.
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