In a tight economy, employee retention is one of many (if not the most critical) issues employers are facing. The costs of employee turnover is a lot higher than just their salary. Team productivity, engagement, culture, hiring costs and many other “soft costs” need to be considered when losing an employee. What can employers do to minimise the risk of losing their key employees and increase retention rates?
Retention starts with recruiting
Recruitment is the foundation of organisational structure. If all parts of the organisation, including Hiring Managers, Human Resources, Learning and Development and Organisational Development, are working together on identifying the aspects of culture and strategy they want to emphasise, then it is easier for them to seek those out from candidates that have applied or are being headhunted for the role.
Getting recruitment right can help employers increase productivity, engagement, and culture within the team.
Identify candidates who’ll stay the course
“What is important to you” is one of the most common questions we ask our candidates during our interview process. Are you looking for a role where you can develop into your full potential? Are you prepared to work hard to get to where you want to be, or are you in it just for the money and not really looking for a long-term career?
Everyone’s motivation is different, and it is important to know what motivates candidates and how they going to fit into the bigger picture of the team and organisation. If motivational factors are different to the values of the company, it is less likely, that the employer will retain those employees.
Provide ongoing education and clear paths to advancement
Millennials, avocado leaders or caramel cappuccino drinkers will play a major role in Australian businesses as they will create 75% of the workforce by 2025. Interestingly enough, millennials are different to previous workforces as they are seeking upskilling, innovation, working with new technology, flexibility, and thrive working in a team environment. Therefore, if employers manage their workforce well and give them clear pathway and tools to succeed, it can result in a positive impact on company’s culture. This creates a key part of retention which is loyalty.
As employers, the power lies in your hands to shape the outcome you desire in terms of employee loyalty, engagement and retention. If you get your retention strategies right, you can benefit from increased performance, better productivity, higher employee morale and improved quality of work, not to mention a reduction in turnover.