Attracting and retaining top talent is high on the list of thought processes for every CEO worldwide. Attracting employees becomes a talent trap by not keeping them.
Making organisations into a family culture to attract and retain top talent with the view that everyone has a voice and everyone matters, getting the job done on time and in a professional way, but ensuring that your employees are all satisfied and feel part of the team. Integration within your firm so that everyone has an identity. Teamwork is the crux of a work culture that attracts and retains the modern employee.
Nowadays, acquisition leaders fail to prioritise retention of employees, mainly because retention isn't under the remit of organisations. Moreover, the recruiting process can only partly influence people's desire to stay after signing an offer.
On average, there is approximately a 15% employee turnover rate in the UK.
Why do employees leave?
Staff retention can negatively affect an organisation, as it is usually a result of large amounts of time and money spent hiring and training new staff members. This happens when employees leave as they 'fall out of love' with their job or feel that something has changed in their career with which they have a problem.
The cost of replacing an individual employee can range from one-half to two times the employee's salary.
How to go about acquiring and retaining employees?
Organisations with a process and culture in place acquire and retain employees more readily. Ensuring a social calendar for in-house and client schedules, including visits and events, is a step toward business inclusion. Firms with multiple locations can benefit from always having management visiting participants in these venues and staff that understand the local culture immediately available on the ground. A hierarchy that feels like a flat management structure that breeds approachability and embeds the culture within the regions. Ensuring everyone is approachable and has the right voice so that the right decisions can be made and acted upon. Everyone's perspective is taken into account. The focus is on the people, and people are the priority, with the aim being support and growth. Employee engagement is vital.
People do leave their jobs.
There is a reason they find another position and are not going to "fall out of love with your job."
Most companies use raises to motivate and reward their employees for doing a good job. Companies need to follow through with this and ensure their employees get a fair raise! But this can also lead to a reason why employees leave.
Salary is often seen as the number one reason employees leave. But this is only part of the equation. Listen to your employees; if they're unhappy at their job, try to find out why. It could be a pay rise, a better appreciation system, or a change in working culture.
But it's only sometimes about money.
Career development! The number one reason employees leave jobs is the need for growth and development opportunities. The type of work, a lack of opportunity, and little opportunity for advancement are all issues that fall under career development.
Ensure you have a good explanation of why an employee is leaving so that you don't lose them for good. Look at whether or not they are happy at their job; this would help you understand why they're leaving and what you can do to change this.
Try to remember what they did and what they accomplished during their time at your company. If you can look back on the good, you can use the bad as motivation to make things better the next time.
Companies with better training have low attrition rates
Employees will leave their jobs if their employers aren't offering good benefits.
A good benefits package should include health insurance, vacation and parental leave, and retirement savings. Employees should have more choices in their benefits packages, like a free gym membership or discounts from 3rd party companies.
Create an enticing benefits package for employees, and provide them with discounts at preferred companies. Offer health insurance to your employees and help them save for retirement.
Give employees a sense of security by helping them save for retirement and providing them with health insurance options.
Freedom to Do Their Job:
Managers account for considerable variance in employee engagement scores but also suffer from low engagement.
Employees want to work for an employer or organisation that will allow them to do their job without too many restrictions. A good relationship between employees and their managers enhances their productivity. Employees are more productive, and the risk of staff turnover is minimised.
Employees who voluntarily leave their roles say their manager or organisation had the power to keep them from leaving their job.
Employees will get overwhelmed and annoyed if your business or organisation has too many strict rules.
Typically, employees choose jobs where they don't feel restricted.
Some of these factors are the primary reasons employees quit their jobs, and what are employers doing about it?
Consider each of the above points and take action to transform your organisation's culture.
Be Transparent: Build a culture of openness so your employees feel connected to your company.
Build Trust: Employees appreciate managers who have an open-door policy.
Keep your Employees Happy: Recognise and reward good performance by your employees.
Build Engaged Employees: Employee surveys are an excellent tool for determining how employees feel about their working environment and how well they are managed.
Be Flexible: Provide your company with a flexible working environment so that employees can balance their work and home life.
Don't micro-managing your employees: Let your employees do their work. If your performance appraisals are hindered by micro-managing, delegate work to your employees.
Relationships are the cornerstone of the business, both externally and internally. Look to hire the best and brightest talent to fit in with the firm's core values. Hire to fit in with future projects with the core skills needed and work culturally with integrity and honesty. This doesn't only appeal to business transformation but a social change.
A people-first strategy that enables your company to grow and thrive.
You can read Chris's article and further industry insights in the latest edition of The Financial Technologist. Download your free copy here.
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