In a recessing economy, employees have fewer opportunities to take a job at another company, but entrepreneurs would be negligent to take their fingers off the pulse of company morale, simply because employees have fewer options.
So what’s one of the biggest reasons people quit their jobs, you ask? One of the major reasons includes being dissatisfied management and the cramped confines of a small, inconsistent business. In bigger companies, there are more opportunities to move vertically, if you’re dissatisfied with a particular supervisor, whereas smaller companies may have fewer options so they run the risk of losing an employee. Research shows: companies where employee loyalty rates are high, policies that serve the dual purpose of attracting potential employees and keeping current employees interested in their jobs, have been implemented.
RECRUITING THE RIGHT STAFF
Replacing an employee in your company costs approximately three times his or her wages in lost productivity, training, and recruiting costs. With the skills shortages plaguing our corporate markets, the problem aren’t finding employees- it’s finding the right employees. Top talents are attracted to competitive wages, good benefits, and plenty of growth opportunities, as well as opportunities where they are empowered to add value. The key to employee longevity and its corresponding effect on the bottom line is to reduce the risk of a mismatch before making an offer.
Here are a few ways to reduce the risk of a bad employment decision.
- Screening begins with preliminary E-mail questions and a phone interview. About 25% of candidates are eliminated at this stage
- Keep track of the best-performing employees and attempt to isolate which characteristics make them productive. Use this information as a guide in acquisition.
- Innovation is imperative, as intelligent applicants know how to manipulate the system. One of the most effective ways to hire is with behavioural interviewing, focused on the isolated characteristics that have identified with top performers.
- Give hiring priority to people who live in proximity of the office, because they believe that long commutes are detrimental to a work-life balance.
- During the hiring process four characteristics are evaluated: drive, influence, steadiness, and compliance. These are used to build profiles for new hires. All employees’ results should be public knowledge, as it helps people understand each other and get along.
- Ensure that competency based references are conducted.
HOW TO IMPROVE EMPLOYEE RETENTION: MOTIVATION IS NOT ENOUGH
Bonuses, vacation days, office parties, and many of the tools in a business owner’s arsenal revolve around rewarding employees for a job well done and motivating them to produce similarly stunning results in the future. There are two issues generally going on with employees at any given time: there are ‘shoves,’ things that demotivate people, and then there are ‘tugs,’ the things that motivate you- that tug at you to stay at the organization. While these factors will differ for every employee, leaders often make the mistake of focusing on the motivators without adequately considering what ‘rubs people the wrong way’.
Here are a handful of instructions on how to retain staff
- Give employees a role in setting company goals. By setting quarterly goals with rewards included, such as iPods for the whole team or a trip to a nice restaurant, encourages employees beyond the competitive and potentially divisive realm of salary bonuses. In addition to spurring employees into productivity, this team structure can make them happier in the workplace. There’s evidence that being in cohesive work groups, where members like each other reduces a high staff turnover.
- Stay in touch with what your employees needs are. Holding quarterly check-ins with every employee or even considering a quarterly anonymous suggestion box to see what motivates and demotivates them. This can give foresight into potential morale problems much sooner than one would ordinarily expect them.
- Talent and skill utilization is another environmental factor that employees seek in your workplace. A motivated employee wants to contribute to work areas outside of his specific job description. How many people could contribute more than what they currently do? You need to know their skills, talent and experience and thus, take the time to tap into it.
- Give employees room to innovate. While employees might be suspicious at first if they’ve never been presented with decision making power before, they will more often than not, adapt to and thrive in an environment that gives them additional control.
Take a look at your organization Are you doing your best to retain your top talent? Implement these tips in your organization to retain your desired employees and attract the best talent, too.