Employee retention: Keeping the good ones
In many organisations, it's the staff who add value. They can make the difference between profit and loss, and when they leave, you could face issues such as performance disruption, replacement costs and the time it takes to find and train someone new. There are steps you can take to recruit the best replacements, reduce the impact of staff leaving and perhaps, most importantly, stop people from leaving in the first place.
In many organisations, it's the staff who add value. They can make the difference between profit and loss, and when they leave, you could face issues such as performance disruption, replacement costs and the time it takes to find and train someone new. There are steps you can take to recruit the best replacements, reduce the impact of staff leaving and perhaps, most importantly, stop people from leaving in the first place.
Stick to the below four basic steps to set your organisation up for success
Getting the best people
It's not uncommon for recruitment to be one of the first casualties of budget cuts, but it's worth remembering that your recruitment decisions can have serious cost implications. After all, you're planning to pay for salary, equipment and other costs for years which can run into hundreds of thousands. This is without even considering the upfront costs of the selection process itself in terms of management time, administration and advertising.
Now, you know the stakes. How do you make the most of your selection process? It's simple. You need to make sure:
- The correct skills for the role are reflected in your advert,
- You are on top of short-listing criteria and interview questions,
- You advertise in the right places to attract the best candidates, and
- Your interviewers have the skills to make the best decision.
Don't settle for someone who "might" be able to do the job as you don't want to have to repeat the process without the added work of managing a poor performer.
Alternatively, it can be a great idea to reach out to a reputable recruitment agency. Not only will you free up the time of your HR people to focus on more strategic issues, you will also increase changes of hiring the right candidate.
Know who the best employees are
This is about identifying who your key people are, the ones who really contribute to your organisation's success. Beware: they may not be the ones who shout loudest or are the most noticeable. Think about who's missed most when they're on holiday, or who's called first when there's a problem.
Increase the pull, reduce the push
There are steps you can take that will change the balance between the pull factors (that make your staff want to stay) and the push factors (that make them want to leave).
Most people assume that pay is the most attractive thing about a job, and sometimes it is, but there may be many other reasons someone wants to stay. It might be a good fit for them in terms of job satisfaction, development opportunities or shared goals. They may have strong links to the organisation - perhaps through colleagues, employee involvement programmes, social events or even sports teams. They may be attached to the local community - by living there or through community involvement programmes and charity work. Don't underestimate the power of trust, which happens where employees are valued. There's an open, honest culture and staff are engaged.
Another consideration is what the employee would have to sacrifice when they leave, not just in pay term, but other perks such flexible working hours, a pleasant working environment or development opportunities. The greater the sacrifice, the harder the decision to leave.
You also need to identify and reduce any push factors. You might have little control over some, like pay, but it's likely you can do something about morale, employee engagement or working conditions. Carry out exit interviews with all leavers, taking an open-minded approach and use that data to identify your push factors. You can do something about them when you know what they are.
Planning for success
It's inevitable that people will leave. Sometimes this can be predicted, for example with staff retiring. Sometimes you have influence over the reasons people want to go. There may be low morale, poorly managed change or a feeling of being undervalued. There can also be external factors outside your control such as the effects of a recession, increases in commuting costs or government policies. Whatever someone's reasons for leaving, having a succession plan will leave you better placed to bridge the gap on a short- or long-term basis.
Taking a measured approached to retaining your staff will save you money and, as a happy by-product, should also improve your reputation in your industry and the community and make you a more attractive employer to potential candidates. It's a win all round.
Would you like to find out how EOH Human Capital can assist your organisation with attracting and retaining the right talent? Drop us a note at This e-mail address is being protected from spambots. You need JavaScript enabled to view it. . To find out more about EOH Human Capital, visit our website at www.eohhumancapital.co.za.
