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Staff Retention There is no simple formula for retaining staff, but some things will always work better than others. There are drivers and inhibitors. Staff stay at organisations because they love what they do, it’s their vocation i.e. the nature of the job, or the culture is right for them (creative and caring, or target and reward driven), however, the boss also plays a key part in retention. A national survey showed that one of the top reasons employees leave a company is because of how they are treated by their boss. Surprisingly it’s not always about money. Only third or fourth on the list of reasons to leave was down to pay and benefits. People leave bosses not companies. People leave if they are bored or bullied, not valued and cannot see progression. So they move on if others can offer them a better working environment that appeals to their values. Also one must factor in other elements like the state of the market, long arduous journeys and the economy. Most employees will stay put during a recession as security is high on personal agendas and this may skew staff retention/labour turnover figures as employees would otherwise leave; which lulls employers into a false sense of they are doing the right things to attract and retain staff. So the best employers have excellent managers who can guide and motivate staff, who generally have great communication skills and help define expectations. Most employees like to know what is expected of them and know they can develop. This means good companies will have: • • • •
good performance appraisal schemes; great training and development programmes, mentoring and 1:1 coaching; career pathways;
Leadership qualities are what inspire and engage staff to go the extra mile and offer that discretional effort, which impacts on the bottom line – some employers share some of this profit with staff. Highly motivated staff pulling in the same direction will have a high impact on productivity. In order to engage staff, incentives such as tax efficient share schemes or bonus payments work well if related to transparent and fair objectives. Celebrating success is also important, so team outings (paid for by the company!) and recognition through advancement encourages staff to give their best. Being creative with additional terms and conditions like extra holidays called ‘duvet’ days around birthday times goes down well, as does giving an extra days holiday and tickets to attend events. Subsidised canteens or free drinks and parking are other little things that make the difference too. Benefits like company cars or having the choice of car allowance is important in some sectors as a way of demonstrating an employees worth, but even a gift voucher or a small token in a small business goes a long way to thank staff for their contribution. Flexible working, child care vouchers and other life style issues are important to staff at certain points in their life as are flexible benefits packages so staff can choose if gym membership and health care is more important than say higher pension contributions – or vice versa. Having the choice is valued by staff, but the most important thing is being listened to and taken seriously if any concerns arise and having a boss that motivates them. This will engender loyalty and commitment. The information contained in this article is for general information purposes only and does not claim to be comprehensive advice. If you need any assistance on this or any other issue, then please contact Kerry McGowan for more detailed information: 07970 489321. Free 1 hour consultation for all new HR & H&S clients.