RETENTION Requisite HR 2016 May Newsletter
Following on from last month's issue on Attraction, this month we will be focusing on Retention; the next step to building and maintaining a talented workforce. It is a word that can get thrown around, but what does it mean? How can it affect your business? And what cost effective strategies can you incorporate to reap the rewards? We hope to answer these questions for you throughout this issue. Retention is the voluntary staying of employees in an organisation. In order to stay competitive and successful, organisations must consistently work to hold on to talented and high performing individuals by developing retention management strategies. These refer to the portfolio of HR practices that organisations use to reduce voluntary turnover rates. For retention management to be effective, it is not only important to create an optimal portfolio of HR practices, but also to manage employees’ perceptions regarding what their organisation has promised them in return for their loyalty and commitment. You may know this as a psychological contract, which refers to employees’ subjective interpretations and evaluations of their employment deal.This implies that retention practices might only be successful if they are consistent
with what employees’ value. The psychological contract is
executive level employee. It's not only financially
established in the recruitment and on boarding phase of
costly, it takes company resources away from core
employment. Therefore making promising that
duties, can contribute to lost productivity,
are realistic and achievable is essential. Employees who
customer retention issues and employee disengagement.
believe their psychological contract is breached, tend to
When you have a high turnover rate, it deeply effects the
reciprocate with reduced levels of commitment or
culture and morale within the business.
intentions to leave. The power balance has shifted from employers to employees in recent years, especially for
Key Strategies
those who are talented and in demand. If high performing employees are not being sufficiently rewarded for their
Link recruitment with retention strategies. Retention
contribution, perceptual or real, they will leave an
begins in the early stages of employment.
organisation.
Give employees a voice. Don't assume that a low turnover rate means employees are 100% satisfied.
"Why is retention such a big deal? Surely we can just replace
Put formal processes in place that give employees
the people that leave, for someone more willing?" You might
ample opportunity to provide honest feedback on
say. For one, the estimated cost of recruiting, training and
their role, their manager, their long-term goals, and
replacing staff far exceeds the costs of retaining
more.
employees. Research predicts that every time a business
Keep an eye on management. The old saying is that
replaces a salaried employee, it costs 6 to 9 months’
'people don't leave jobs, they leave managers.'
salary on average. For a person making $40,000 a year,
Developing and improving managerial soft skills
that's $20,000 to $30,000 in recruiting and training
(communication, listening and conflict management)
expenses to get the new person to an acceptable level of
are just as important as developing technical skills
performance.
and knowledge.
Others forecast the cost to be even higher, that losing a
Learn from exit interviews. Seek to understand why
salaried employee can cost as much as two times
employees are dissatisfied or leaving and work hard
their annual salary, especially for a high-earner or
to fix them, so that they don't continue to occur.
NOMADIC
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Maslow's Theory & Employee Retention It is important to remember that what motivates one employee, is never going to be the same for another employee. While ultimately we are driven to pursue our full potential, the need network for people is complex. Abraham Maslow theorised that when one need is satisfied, another will take its place. For example, employees are motivated to work so that they can make money to provide food and shelter for their families. Once this need is met, more is needed. This is when employers need to start thinking about programs and initiatives to address higher order needs. Concepts which are important are achievement, recognition, autonomy, work life balance, flexibility, long term career development, opportunities and advancement. Surveys reveal that these were all are ranked more important than income and health insurance. With this is mind, employers must ditch the one size fits all approach when it comes to compensation and ensure policies and practices are flexible and support the changing needs of a dynamic work force. Employers must also ask what employees want, and ask them often. It sounds so simple! It's not a trick, it's that easy. Employees' needs change all the time, timely performance reviews provide an opportunity to ask these questions and perhaps re-evaluate expectations or objectives. Finally, managers should ensure that the employee is the right match for the job. There is no way that someone will be motivated, let alone stay in a company if their role is not their passion or is not suited to them.
Employee Engagement: The Key to Happiness and Organisational Performance. Contributor Writer - Darren Brady, Managing Director at Total Team Building. There’s a good reason Google received
Engaged workplaces are more
selling author and psychologist, writes in
almost 1.3 million applications from people
profitable, have positive customer
Positive Intelligence; Harvard Business
hoping to gain employment with the tech
feedback and a higher rate of employee
Review. Engaged employees are
giant. Google’s philosophy is to “create the
retention.
psychologically invested in the organization and care about its overall
happiest, most productive workplace in the world,” company spokesman Jordan
In a comprehensive analysis of 225
Newman told the New York Times.
studies, researchers Lyubomirsky, King,
For the sixth consecutive year, Google leads the pack as number one on Fortune’s list, the 100 Best Companies to Work For. Beyond the bounty of perks offered to Googlers, it’s a happy environment that ignites creativity, cultivates innovation, and most importantly, boosts productivity. Teams are the foundation of its success and the Internet juggernaut spares no expense at keeping its employees happy. It
and Diener (2005) found a strong connection between happiness and success. The research that combines neuroscience, management studies and the bottom lines of international organisations shows that happiness and positivity in the workplace results in:
3 times more creativity 31% more productivity 10 times more engagement
success. If your company or business is looking for ways to engage your staff, why not invest in regular team building activities that are fun and create a culture of happiness within your team! With more than 20 programs and activities to choose from let Total Team Building help you engage your staff. Visit our website www.totalteambuilding.com.au for more information or call us on +61 403 259 090.
even has a People Operations department with experts whose jobs are to ensure
"People who cultivate a positive mind-
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outcome shows improvement when the
engaging environment that people enjoy.
brain is positive,” Shawn Achor, best
Monthly Competiton
COMPETITION CLICK HERE TO ENTER
Now that you're an expert in retaining talented employees, answer the following question to go in the running to WIN: "Who was Abraham Maslow?"
a)Car Salesman b)Italian Violinist c)Psychologist Submit your answers via private message on our Facebook page or
RE TO E H CK CLI R ENTE
you can email the answer to info@requisitehr.com.au. Terms & Conditions apply.
TERMS & CONDITIONS OF COMPETITION: Each monthly competition's closes 30 days from the published date. Each person may only enter once per month. Answers must be submitted via Email or private message on Facebook. The first 3 people to correctly answer the question will receive 4,3,2 points and every other participant after the top three will receive 1 point. All points will be kept in a tally and added to throughout the year. Competition winners will be announced via Facebook or Email and prizes will be awarded in December 2016. First Prize: Veuve Clicqot Champagne (valued between AUD$99.95-$69.99), Second Prize: Johnnie Walker Platinum Label Scotch (valued between AUD$98.95-$70.99), Third Prize: Godiva Signature Truffles (valued at AUD$50.00). Competition organisers can terminate or exclude entries if they do not meet the T&Cs of the competition.
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