Retaining Staff is Increasingly Crucial for Organisations - Part 2

7 July 2006

Last week, corporate performance improvement consultancy, Facilitators UK, examined the ramifications for employees with regard to a recent statistic that demonstrated 70% of UK staff intends to move job in the next 12 months.  This week, Douglas McAllister a Senior Associate with Facilitators UK, looks at how employers should learn to retain staff for the long term.

The statistic that 70% of the UK workforce wants a new job should strike fear into the heart of every company in the UK. I accept that all organisations will lose personnel - it's a fact of business life. And in some cases the reasons employees leave a job will be beyond the control of organisations, but more often than not, employers will have contributed to an employee's dis-harmony.

In today's competitive recruitment market, staff retention has become an important issue for all employers as finding and keeping good people becomes increasingly difficult. Losing key and valued staff can be catastrophic, particularly for SMEs - indeed it can make or break businesses.

One of the key aspects surrounding the whole concept of staff retention is the fact that people will seek a new job for the same reason they joined a company in the first instance. For example, if someone joined an organisation principally for career prospects, and that promise has not been fulfilled, they are likely to leave for that same reason.  Employers need to recognise this trend and look seriously at ways of retaining good people in the longer term, otherwise that 70% figure will continue to rise.

In order to facilitate the retention of staff, it is important to first understand why people join organisations and why they leave. There are four key factors why someone may choose to join a particular company:

  1. The job is exciting, interesting or matches skills
  2. Good career prospects
  3. Good package
  4. New job fits with family / lifestyle / interests

And the main reasons why people leave organisations:

  1. Job does not meet expectations
  2. Problems communicating with boss or colleagues
  3. Better offer elsewhere
  4. Family and personal circumstances change

How can we use this information to ensure long-term staff retention?

Recruitment

One of the critical factors of employee retention is ensuring that the right kind of people are attracted to a particular job or company in the first place. The recruitment process must be realistic. For example, working as a chimney sweep is a dirty, hard job. I see little value in trying to disguise this fact in the recruitment process, as the wrong type of person will then apply for the job, the wrong type of person will be recruited and ultimately, that person will not last long as a chimney sweep! This is an extreme example; however, there are countless instances of organisations 'selling' and 'dressing up' jobs in recruitment adverts and interviews. This misleading approach, in my view, is ultimately a waste of everyone's time and money.

During the recruitment process, employers must be open and honest in terms of the job content, career prospects and conditions that a particular position will command. Providing a false impression of a job may fill posts in the short-term, but I can guarantee that staff turnover will be very high and in all probability, job satisfaction very low. Therefore, it is vital in the recruitment process that not only is an accurate job description provided, but also that promises are kept.

Retention

Once recruited, there are many techniques and initiatives that employers can consider to keep prize personnel on board:

  • Early mentoring ( buddying)

Starting a new job can be a difficult and stressful experience for employees and many organisations lose staff within the first two months. Unfamiliar surroundings and procedures and the great unknown can be daunting. Organisations should assign a mentor or buddy to a new start ensuring that the process of beginning a new job is not so traumatic.

  • Regular early reviews

To make certain that a new employee is fulfilling the expectations of the company, and vice versa, regular reviews, particularly at the outset, should be implemented. This ensures objectives are met and any potential issues addressed before manifesting as problems.

  • Reward and recognition

All too often in many organisations, good work goes un-noticed or indeed un-praised. The value of praising a member of staff for a job well done cannot be under-estimated.  Feeling valued in the workplace is undoubtedly THE key reason an employee will ultimately remain with or leave a business. Providing an employee with extra responsibility is also a very effective means of recognition demonstrating that the employer respects and values that individual.

Rewards too are important. Monetary rewards, of course are motivating factors, however, gift vouchers, Friday afternoon massages, office nights out, work from home days, birthday holidays, employees of the month awards can all be remarkably effective in creating job satisfaction and fostering team spirit.

  • Attention to team dynamics

Teamwork is a fundamental part of modern business. However, employees do not want to work in or be associated with teams that do not work. This undoubtedly is a de-motivator. Organisations must analyse the dynamics of successful teams and attempt to implement that throughout a company.

  • Encourage creativity

Employers should employ an open door policy encouraging new ideas and creativity. There can never be enough innovation within a company.

  • Fair and open promotion process

Employers should ensure that the promotion process is transparent and fair. Organisations cannot afford to be seen to overlook certain employees without good reason. Any hint of favouritism, ageism, sexism or any other form of discrimination should not be tolerated within a company full stop, let alone within the promotion process.

  • Promises must be kept

As previously indicated, employers must MUST keep promises. If not, an employer will lose respect for the company, become frustrated and be more likely to seek a career elsewhere.

  • Encourage fun in the workplace

An organisation with a dull, stagnant and depressing atmosphere will make worse any staff retention problem. Fostering a good team spirit, regular breaks, team nights out can all help make the workplace a more enjoyable environment.

  • Exit interviews

One of the most valuable tools companies should employ, in terms of learning how to retain staff, is to conduct exit interviews. Understanding why staff leave an organisation is key to learning how to retain good people.

  • Leave the door open to good employees

If a good employee tenders their resignation, employers should encourage he/she to get in touch should things not work out. After all, as the saying goes, the grass is not always greener on the other side - if he/she was a valued member of the team why wouldn't you want them back?

Career Development

Augmenting all the previous points should be a focus on individual career development. Employees treat their career very seriously and should an employer wish to retain staff in the long term they not only need to recognise this fact, but also must introduce measures that help staff make the most of their careers.

Employers and employees should mutually agree a realistic personal development plan, and from that identify training and development plans. Companies must be dedicated toward training demonstrating a commitment to employee development. Annual appraisals should be conducted as a matter of course, ensuring that staff are meeting personal and business objectives. However, regular informal reviews should also be held throughout the year keeping things on track. Additionally, organisations should also embrace employee flexibility. People's ideas can change throughout their career, therefore rather than risk losing good personnel, organisations should explore career changes within the company even on a project-by-project basis.

To conclude, developing a reputation as a good employer is something that all companies should strive for. However, this will only occur if an organisation treats very seriously staff retention problems and implements measures to combat retention issues. By investing in staff retention, an organisation will not only enhance its reputation but will also benefit from an enthused and energised workforce - a win win situation. A company that ignores the statistic that 70% of the UK workforce intends to move job in the next year, and does not address staff retention issues, is a company that has some challenging problems to overcome.

Facilitators UK has launched its career management service focusing on the needs of all those involved with careers - whether that be advising organisations on how best to retain key staff, providing individuals with career management tips or advising graduates on how to breach the corporate job market. With an extensive client list not just in the north east, but Scotland wide, Facilitators UK's consultants work with both SMEs and major companies across the country addressing staff retention issues.

Further Information

Please contact Douglas McAllister for further details.

Please see our Press Releases for further press and media related information.