We’ve covered a lot of ground in this 2-part article. If you’d like to have a permanent copy for easy reference, just click the button below.
During one coaching session I talked to an agency owner who lost some top-performing employees within a short time frame. During their exit interviews, these employees assured the owner that it was nothing personal - they were leaving to pursue evolving career goals.
It’s an explanation that people always use when they don’t want to get into the details. How many times have you had to tell a non-performing employee that “It’s not working out?” In this case, they are essentially telling you the same thing.
If you wait until key employees leave to find out why they chose to move on, you’ve lost two golden opportunities:
In this second part of a 2-part series on recruitment and retention, I would like to discuss why employee retention is so important, common reasons why people leave, and how you can make your agency a place where people are eager to build their careers.
Like other agency owners, you need quality talent and stability in a tight economy. Losing a member of staff can be very disruptive and stressful (for those who have to pick up their workload). Another reason why retention should be at the top of your agenda is that the cost of turnover is high: depending on the employee’s position, you could be spending up to 2.5 times their salary to replace them. Given the fact that the average turnover rate in UK agencies is around 20%, costs can quickly become prohibitive.
There are also other costs, like reduced productivity and disengagement among your current workforce, some of whom may ultimately decide to leave too.
The good news is that talent exodus is not inevitable. Although people can and will leave for reasons beyond your control (and which have nothing to do with your agency), there are proven ways to increase retention, and they start after you say, “You’re hired.”
In part 1 of this series, I explained how retention starts during the recruiting process. From reviewing CVs and screening applicants to conducting first and second interviews, you seek candidates who are a good cultural fit and have career goals that mirror what your agency has to offer. This involves:
After weeks (maybe even months) of interviewing, you find the right person. You make the offer, they accept it. Now you can rest easy.
Not so fast. This is when the challenge begins, not when it ends. It can take new employees an average of eight months to get up to speed, and to make the transition as successful as possible, your agency needs a strong induction process.
Starting a new job can be an exciting yet stressful experience for anyone. When you have a process in place that introduces them to colleagues and outlines what their first few weeks will be like (down to the nearest hour), you’ll raise their confidence and set them up for success.
Recommended steps include:
It is important to have realistic expectations. Even the most experienced employees need time and support as they settle into their new roles and understand how your agency operates. Clarify what you want them to focus on and achieve during the probationary period, and keep the momentum going until you know for sure whether or not they’re going to work out. If you take a formalised pragmatic approach to onboarding a new employee then you should never have to extend their probation period.
Your new hire has passed their probationary period and joined your team. Congratulations! Now you need to give yourself the best chance of retaining them for the long-term. Proven retention strategies include:
Keeping an excellent new employee means that you have to be smart. To be more precise, you need to use SMART objectives that establish a definite roadmap for their career progression. Vague and ambiguous goals don’t provide the direction needed to inspire top performers - they need to know what’s expected, when, and how you want them to achieve those objectives. I guarantee that a vague ambiguous objectives will lead to misunderstandings and frustration so take the time to get this right.
Below is an overview on how this acronym (which stands for specific, measurable, attainable, realistic and having a set time frame) can apply to performance management at your agency.
The meaning of SMART
Succeeding in your employee retention efforts requires you to think about what matters most to your team. While everyone is different in terms of goals and values, practically all employees want the following:
Think about what retention incentives you can put in place. Successful strategies include:
Sometimes turnover is inevitable. People will leave for personal and professional reasons, but you can minimise the impact on your agency by implementing a succession plan that enables vacancies to turn into growth opportunities for existing staff.
An effective employee retention program should start on a new hire's first day on the job. The training, support, and incentives that you provide from Day One can boost job satisfaction and set the stage for a long tenure at your agency.
As always, I hope that you enjoyed this article. Using the strategies, insights, and tools that I’ve discussed here, I’m confident that you will be able to:
If you have any questions, please leave me a comment below and I’ll be happy to respond.
This is part 1 of a 2 part series on recruitment and retention. This article focuses on the recruitment process and part 2 will focus on retention strategies.
We’re going to cover a lot of ground in this 2-part article. If you’d like to have a permanent copy for easy reference, just click the button below.
I hear this every day in my coaching practice. Agency owners hire new employees who either don’t make it past the probationary period or leave before their one-year anniversary is up. In some cases, an agency goes through hours of interviews without feeling confident enough to extend a job offer.
It’s true that currently it’s super challenging to find good people, especially in an uncertain economy. When overall conditions are bad, everyone clings to their job like a life raft. No one’s going to jump ship when the chances of sinking are too high. When times are good, there are more opportunities for them to choose from.
Many agencies believe that their location is a key barrier but truth be told, it doesn’t matter where you’re located. If you’re in the city, there’s a bigger talent pool but a lot of competition from other employers. In more rural areas, your hiring choices are more limited and, even if you extend your reach, you may not find someone willing to relocate.
Chances are that as an employer, you’ve been through this seemingly endless cycle of job ads, CVs, and job interviews that are soon followed by exit interviews or no hires at all. Not only is it frustrating, but it’s also expensive and can affect morale among staff who have to shoulder extra duties until you bring someone else on board.
How can you fix it? By optimising your recruiting process.
A streamlined and consistent hiring strategy is a vital element in any successful recruiting programme. When you can access the right talent, set up interviews promptly, and extend the job offer soon afterwards, you can realise the benefits outlined below.
According to the Society for Human Resource Management, whenever a company replaces an employee, it costs an average of six to nine months’ salary. If you’ve engaged a manager at £40,000 a year, that's up £30,000 in recruiting and training expenses.
The cost of unfilled positions is also significant. A vacant revenue-generating role, such as an account manager, represents money lost. If you have to pay freelancers to do the work in between hirings, you could be facing high costs. Lost productivity and diminished quality of customer or client service can also translate into reduced company earnings.
These are all financial challenges that can be eliminated when you use a more effective recruiting strategy.
When you have access to higher-quality candidates and can present them with a job offer soon after a successful interview process, you can prevent competitors from scooping up the talent that could take your company to the next level.
The delay between interview and job offer is bigger than most employers realise. A survey by the Accounting Principals revealed that over half of the U.S. hiring managers and HR personnel polled said that it took them over a month to complete a typical hire. In the UK, it can take up to three months. When an ideal candidate waits too long to receive a job offer, it gives a poor impression of your agency and increases the likelihood that you will lose top talent to a competitor.
Poor hiring decisions can have legal consequences. If a new hire doesn’t work out, they may accuse you of misleading them into accepting a role that wasn’t a good fit or claim that you dealt with them in bad faith, or the way you exited them was not fair. Since dealing with employment tribunals can cost a UK employer £8500 on average, preventing a wrong hire in the first place can protect your company’s bottom line as well as its reputation and internal staff morale.
These are all reasons why you need an optimised recruitment strategy. Now let me show you how to make it happen.
Be clear on what you want before you start looking. I’m not talking about the job description, which you probably know by heart. I’m referring to the ideal candidate.
Candidate profiles are blueprints that map out your preferred skills and personality traits for the role. Do you want someone who is an independent thinker? Savvy on social media? An outgoing people person? I liken these profiles to the customer personas that sales and marketing professionals use to define the ideal customer for their product or service.
An accurate and appealing job description can attract candidates with the right hard skills, but soft skills are equally important, and a candidate profile can help enhance the quality of your shortlist.
If you’ve ever had to sift through tons of rubbish CVs, you know what a huge time waster the DIY hiring route can be (both in terms of your time and ultimately, money). This is not a time when you want to be cutting corners: working with a recruitment company will save you time and money.
Many of the most successful agencies use recruitment companies to assist them in finding and keeping top talent. Reasons include:
Access to the quality candidates. Recruitment agencies can help you reach both active and passive candidates. Those who are actively looking for a new job tend to register with agencies, who often have access to highly-qualified passive prospects who could be tempted to join your team. In addition, these companies know how to optimise a vacancy advert so that it ranks highly for the appropriate job search.
Shortlisting management. A recruitment agency will sift through all incoming CVs for you, rejecting unsuitable ones and responding to any queries about the role. You won’t have to waste your own time and resources dealing with unproductive hiring duties.
Assistance with speciality occupations. Sometimes you need an employee with a unique or specific skillset. Engaging a recruitment agency that understands your industry can ensure that all shortlisted candidates will be fully qualified ones.
Many recruitment agencies also offer specialty services such as salary benchmarking, which helps ensure that you’re offering a competitive wage, and psychometric tests, which give unique insights into the natural talents and abilities of prospective hires.
Now I acknowledge it can be hard to find a great recruitment agency so make sure you meet several and pick one who ‘gets’ your market space and doesn’t over promise.
When the agency has sent you a list of pre-screened candidates, it’s time to interview them. If you’ve worked with a reputable agency that understands your needs and your industry, you can feel reasonably certain that you’ll be interviewing people who have the necessary education, experience, and qualifications for the position. Now you want to focus on who they are, and why they should want to work for you.
Here are some tips for conducting a strategic interview.
Avoid the standard questions. If possible, avoid typical questions like “Where do you want to be in five years?” or “Tell me about your proudest accomplishment.” Chances are that you’ll get a rehearsed response. When you ask something that they won’t anticipate, you’ll have a good idea of how they deal with the unexpected. Do they freeze and stutter? Or do they think about the question before giving a good response?
Have them expand on their answers. In most cases, the first answer they give you is one that they’ve practiced. Encourage them to expand by remaining silent or asking, “What else?” Unrehearsed answers will give you insights into how they really think, especially under pressure. Silence can be your friend here – if you don’t fill the gap then they will (a tip I learned from my PR days and a tool that journalists use to get the juicy inside gossip!).
Obtain practical information. Scenario-based questions are an excellent way to anticipate how the candidate will react to a variety of job-related challenges. If you say to a prospective manager, “How do you motivate an employee who is underperforming?” you’ll have a better understanding of how they manage people. In addition, questions like “What obstacles did you face on your last project and how did you overcome them?” can give you insights into accomplishments that may not be on their CV. Also don’t be afraid to ask them to do some ‘homework’ and have them present to you (and dig in to understand HOW they went about preparing the presentation)
Screen for cultural fit. Every agency has its own culture, and ideally you want to hire someone who shares the same values as the company. They’ll be more engaged, and studies have shown that an engaged workforce can improve business performance by 30%.
Don’t forget to sell yourself and the agency during the interview too. A key part of your company brand is the benefits that you offer, such as:
Don’t forget the emotional benefits too. Tell the candidate why your employees enjoy working for your agency. Talk about any valued traditions, such as sports teams, volunteer organisations, and employee-driven initiatives. You can even have one of your employees join in at this stage of the interview to share their positive feelings about their job and the company.
If you feel positively about a candidate, don’t wait too long to extend an offer. According to ERE, the highest-quality job applicants are off the market in an average of 10 days. If your company waits too long, you’re going to miss out.
As an employer, you may be wary of making a quick hiring decision, but if your preferred candidate is going to be in high demand because of the value they will add, cut out any unnecessary stages of the recruitment process and be prepared to hire sooner. High performers in the top 5% of a company’s workforce can deliver 26% of its total output.
Finding top talent presents a challenge for employers across the globe. While the right hire can make a huge and positive contribution towards the development of your company, the wrong one will hold it back. By optimising your hiring process, you can source the top performers needed to stand out in the most competitive industries.
I hope you found this article useful. In the next one, I’ll discuss the ways that you can increase employee retention and develop a work culture that increases loyalty and job satisfaction. In the meantime, if you have any questions, please post them below and I’ll be pleased to answer them.
This is part one of a 2-part series on recruitment and retention. In the next installment we are going to focus on strategies to keep your staff for the long term.
In this new article series, I’m going to discuss some of the most common problems you may encounter if you aspire to scale your agency – and how you can avoid them. Think of this series like a roadmap: it will detail the routes available to you, but ultimately, which road you decide to travel is up to you.
Before we start, it’s important to note that having a small/lifestyle business isn’t a bad thing – if that’s your goal. Some people are content running small agencies (i.e. 5 or fewer employees). Some people are content to work entirely by themselves. And with the right strategy, you can build a highly profitable small business (even without employees) that affords you plenty of free time and the chance to do work you enjoy.
Running a small business can be liberating in some ways. You can charge more competitive prices than your competitors, who have larger overheads. You can create more personal connections with clients and have a direct hand in delivering work to them. There’s also less pressure when you’re only responsible for a handful of employees or just yourself.
However, depending on your ambitions, you may wish for something more. You might have a vision of an agency that is number 1 in your niche. You might hope to eventually “cash out” and retire young (a hard feat to accomplish when you’re responsible for servicing clients every week).
Many agencies start out with just 1-3 people (the owner(s), and maybe an employee or two). Few businesses stay this size – over time, they scale up and become full-fledged operations, capable of creating waves in their space.
The process of scaling up your agency is not always an easy one. There are several pitfalls you need to avoid on your path to a bigger business. Depending on how far along you are on this journey, the dangers will differ. Let’s take a look at these problems in more detail.
When you start as a one-man band, there are certain things you take for granted. No one knows you better than you know yourself. You seldom need to explain what you’re doing to yourself – the answer is already in your head. While this is obvious (and very convenient), it can be a hindrance once you have to take on your first employee or two.
The process of going from zero employees to one or more can be tough to adapt to if you’re not prepared for it. Almost overnight, you go from being able to just do things to having to explain little details to someone else (the stuff you know, but take for granted as common knowledge). That could include your preferred methods of communication, typical working processes, favoured tools/systems, or anything of that sort.
Typically, the first hire you’ll make as a solopreneur looking to expand will either be another functional person (i.e. someone who you can directly delegate work to), or an admin employee (who can handle everything that doesn’t relate to servicing clients). You shouldn’t just hire these people for their skillset – you also need to look out for adaptability and can easily be flexible enough to work in a small agency and do what needs to be done!
The growing pains you’ll experience when moving from self-employment to co-existence with someone is a huge psychological leap – you’re moving from a 1-man band and making the decision to become a ‘real’ business – that’s how it felt to me!
Let’s take a look at an actionable process you can apply to your business today if you’re looking to make one of your first hires (or just a great hire in general).
I’ve heard many horror stories in my time as a business coach. I work with a range of small and large agencies. Regardless of how far along these businesses are in their scaling journeys, the owners usually have stories to tell about the mistakes they made when hiring their first employees. And from listening to all these different stories, I’ve learned there’s a general process you can follow to avoid these mistakes:
That’s the abridged version of the experiences I have seen with many successful agency owners over the past 12 years. While the specifics of their situations differed, the overwhelming majority of them followed a process much like this when taking their agency from “solo to small”.
While part 1 of this article was geared towards one-man bands looking to make their first hire or two, the fundamentals of making great hires are the same no matter how big your agency is. Hiring typically gets a little easier as you scale – you have a better grasp of the kinds of employees you need, attract better candidates, and have stronger systems in place for making the right decisions. When you’re starting out, you lack these resources. That’s why it’s so important to have a robust process in place for making hiring decisions.
Starting that journey of growth may begin with hiring a freelancer but don’t be fooled into believing you can build your business using freelancers. I can guarantee you that it will not work. A freelancer may help with growth in the early days, and they are great for plugging a capacity gap or bringing in skills you do not need or want permanently in your agency, but they are not a long term strategy for growing your agency. (If you want to know more about why I believe this then get in touch).
P.S. In the next article in this series, I’ll discuss what it takes to go from “small” (5 or fewer employees) to “not-so-small” (10-15 employees approx). Stay tuned!
I am not a big fan of new year’s resolutions, so I never set any but I do set business goals for myself. New year’s resolutions are usually pipedreams or hopes and as they say ‘a dream without a plan is just a wish’. So setting business goals with plans behind them is the way to go.
As I outlined in my last blog post, in 2018 the 3rd biggest challenge my clients had (that I supported them to work on in our 1-2-1 coaching sessions) was how around staff retention, specifically “do we attract and retain the best staff?“.
There are a multitude of answers to this complex question, not least getting the recruitment and induction process right. Research shows that staff are highly engaged during their first 6 months of employment and that millennials are prone to ‘job hoping’. The same research also identifies that millennials are also highly motivated by self-development.
So is learning high up on your agenda for 2019? Not only to keep staff engaged and retain the best talent, but also for you to ensure you are using best practice?
This is such a big part of retention yet is one area that is frequently overlooked by employees (‘we don’t have the time’ or ‘we don’t have the budget’, are 2 statements I frequently hear). Indeed I have had my clients ask me if I have a face to face course I delivered as an online course or if I could take a particular subject I coached them through and turn it into some kind of online learning. It was these conversations that led me to launch a series of online courses around everything to do with starting, growing and running a successful agency (7 courses to date with plans to add at least 2 more in 2019). Take a look here to see all 7 courses.
The advantage of online learning
There are many advantages (and a few disadvantages) to taking an online course rather than a classroom based course. Here are 4:
Of course one disadvantage is that there is no interaction with the trainer or fellow students. To help counter that I invite all my students to join my closed Facebook group where I regularly post content and also am available to answer students questions.
There is really little excuse for not planning to have learning and development on your agenda for the new year. The benefits of increasing skills and retention make it a no brainer, so make sure you have it on your plan for 2019!
Since we are just starting our new year, I thought it would be interesting to reflect back on 2018 and share with you the reoccurring themes and biggest business challenges that came up time and time again during my coaching sessions with clients. So here are my top 5 (I would bet most of these were and are relevant to you in 2019).
This is usually a question that is asked early on and one of the reasons for engaging with a coach such as me.
In the agency world, there seems to be a constant mismatch between being super busy, working long hours and yet, not being profitable enough. This results in lack of investment in the business, not enough hours for the owner to work on their business, high staff turnover (if you have staff) and burnout.
As my clients know, the answer to this, whilst it’s not one thing, is definitely to sell value, outcomes and transformations and NOT time.
This kind of goes hand in hand with one because if you are run ragged servicing low paying challenging clients then you will have little time for new business. So firstly, get that right so you have time to look for new business.
Secondly, know your customers (define your customer personas). Understand their challenges (that you can solve) and market yourself against these challenges (rather than telling them how wonderful you are).
Understand their buying habits so you know where they ‘hang out’ (networking?, LinkedIn?, Facebook ads? (yep they can work for business) and so on).
Give away some value for free to demonstrate your credibility (such as a blog like this one) and build rapport with them through regular communications.
Like all the issues, this is a big one with a long answer. So let me give you a few quick thoughts on this:
This is all about getting your structure/infrastructure right, so you have room for growth. I always tell my clients to build their business structures today for the business they want to be tomorrow – that way you can grow in a managed sustainable way. If you don’t have the structures in place and grow rapidly, you are just as likely to shrink as rapidly – and have a stressful time in doing so!
So they are the top 5 challenges that I helped my clients solve in 2018. Will they be the same in 2019? Did I miss anything? Do let me know by dropping a comment or sending me a message.
You’re understaffed and everyone is maxxed out. You finally find a good candidate to fill the vacancy. They start and you breath a sigh of relief now that the post filled and the pressure is relieved. You leave them to get on with things but quickly realise they are not quite what you thought they would be and they realise the Company isn’t quite what they expected. Things don’t quite work out and you find yourselves back to square 1. Does this sound familiar?
I am amazed that this scenario often happens and unwittingly, staff are set up to fail rather than succeed. In order to give a new member of staff the best chance of success you need to map out their first few months so both you and they know what to expect and what ‘good’ looks like in their role. They need to know their priorities for each month, what the outputs of each task are and how they are measured. This way you can ensure that yours and their expectations are met. Management needs to take the time to mentor and ‘buddy’ them so they can ‘learn the ropes’ and settle into their new role and environment as seamlessly and quickly as possible. In a larger organisation there is usually a formalised induction process (although this can be very HR heavy rather than role specific) but in SMEs this is often lacking.
This is a perfect example of one of my favourite expressions: “Slow down to speed up”. Spend the time at the start getting it right to ensure you and your business moves forward faster in the mid to long run. Invest time in hiring the right staff (if you cut corners or take the cheapest route, you usually end up with a compromise) and then invest time in getting them settled in and up to speed to reap the benefits later on.
Staff attraction and retention is a huge issue for business at the moment. It’s a candidates market so getting it right is crucial. However, hiring the right person is just the start of the process. So how good is your induction process and what other tips do you have?
How good are your circus skills? Well if you run your own business you will know that juggling skills are a prerequisite (and if you don’t recognise this you will soon be in trouble). In fact it is one of the reasons so many start ups fail in their first year.
It’s not enough to have a great idea for a business and to have researched there is demand for your product/service, you need to be able to spin a whole load of plates or juggle lots of balls at the same time.
So what juggling skills do you need exactly? There are 3 key areas you’ll need to be good at juggling:
So the main thing you need to juggle is time. And time is in short supply so getting structured becomes super important. Allocating time to working on the business (strategy) and managing staff is as important as delivering client work (revenue). And the first two can’t go out the window when you get busy with client work because if they do, what will you do when clients eventually stop working with you (and trust me, at some point they will)? Those companies who proudlhttps://www.dacostacoaching.co.uk/whitepaper/y tell me they are super busy and get all their business through referrals so don’t need to do any kind of sales or marketing, will eventually find themselves in a trough and it’s at this point that businesses make poor decisions.
A business in the trough will be desperate to get more work and do one of 2 things: they either discount to win business or take the wrong kind of work on. Both scenarios are examples of poor decision making and will eventually lead to more balls being dropped, short term client relationships and poor staff retention.
So how good a juggler are you? It’s a skill I would definitely recommend gaining.
I wrote on this topic a while back and since it was really popular, I thought I would add some further thoughts.
In the 21st century, a crucial part of attracting and retaining the best staff is to ensure you have a strong, clear and up to date online presence. The Z Generation (those born after the millennium) sees social media at the centre of their communities. A report by Sparks & Honey, a US advertising agency describes this generation as the “first tribe of true digital natives” or “screenagers”. But unlike the older Gen Y, they are smarter, safer, more mature and want to change the world. This is also why CSR (Corporate Social Responsibility) policies are more than just good for positive PR but crucial for attracting and retaining the younger, Z generation who want to “make a difference in the world”.
Glassdoor Research shows that when candidates have access to information about a job and company—before deciding whether to apply or accept a job offer—employers have seen an average of 22 percent reduction in turnover. The tide is already shifting with employees having more voice with the social channels. Review portals like Glassdoor and independent surveys that rank companies in terms of employee satisfaction have become important tools for potential employees checking out employers.
Of course your social media presence isn’t just about staff, it has to engage with all your stakeholders, including current and potential customers. The importance of social media is not just because of the Z-Gens but also due to the prominence of mobile devices and the X gens/baby boomers also using social media more frequently.
The success gap is widening between businesses that are using social media in an informal, ad hoc manner and those taking a more planned, strategic approach.
This has significant implications:
So how does your social media strategy fit in with your marketing plan – and how strategic v adhoc is it? And how are you measuring and adapting your online presence? Want to find out more then get in touch.
2015 will prove an challenging year for attracting and retaining top talent. As part of this, a key agenda activity for HR and marketing will be to ensure your social media presence is up to date, attractive and reflective of the aspirations of your business.
The next generation of job seekers are looking beyond job boards and now engages with potential employers on social media sites. Glassdoor research shows that when candidates have access to information about a job and company, before deciding whether to apply or accept a job offer, employers have seen an average of 22 percent reduction in turnover. The tide is already shifting with employees having more voice with the social channels through review portals like Glassdoor and independent surveys that rank companies in terms of employee satisfaction.
So does your social media presence reflect the image you want to give to a potential new employee?
Here are a few thoughts:
Twitter – an excellent way to communicate to lots of candidates. Here’s a few pointers to get you started:
Facebook – is a perfect medium to give your employer brand a boost. Here’s how to make it work for you:
LinkedIn – is a great way to build your company’s credibility in the eyes of the job seeker. Here’s how:
A recent survey shows that 1 in 3 staff will be look for a new job in 2015. While this may be a good sign for those looking to hire this year, it also means that staff retention is going to be a challenge and needs to be at the top of your agenda in 2015.
So let’s look at the reasons staff leave and some ideas on how to retain them.
Five main reasons why employees leave
1. It doesn’t feel good around here – This can include any number of issues to do with the corporate culture and the physical working environment.
2. I am not valued and don’t get the support I need to get my job done – Many people don’t feel personally valued. When people don’t feel engaged or appreciated, all the money in the world won’t keep them. People want to do a good job yet can feel constrained to do so because of lack of manager support.
3. Lack of opportunity for advancement – Advancement doesn’t necessarily mean promotion. More often, it means personal and professional growth. People want to be better tomorrow than they are today.
4. Personal growth – Personal growth constitutes a very strong driver in today’s workforce, particularly with the younger generation. People coming out of college often identify training as the primary criterion for choosing their first company. Companies that cut back on their training departments have a lot of catching up to do in order to attract good people.
5. Low compensation or recognition – People want fair pay but contrary to most managers’ beliefs money rarely comes first when deciding whether to stay or go. Employees want opportunities to grow and learn, to advance in their careers and to work on challenging and interesting projects. They want to be recognised and appreciated for their efforts. A certain percentage of people will always chase more income but the majority of workers look at non-monetary reasons first.
So that’s the bad stuff, now lets look at some retention strategies.
Five staff retention strategies
1. Have a clear mission and defined set of values – Having a clear mission and ‘lived’ values will help you attract and retain the right staff who buy into the values. Younger staff want to feel they are part of something exciting that they believe in. Use your values to help your recruitment process and recruit against values as much as you recruit the ability to do the job.
2. Give employees ownership – Has anyone ever enjoyed being micromanaged? People work best (and are happiest) when they have ownership, when they can solve problems their way and express their individuality. This doesn’t mean making everyone equal but ensuring work is delegating when and where it should and can be.
3. Develop your staff – Staff development strategies deal with personal and professional growth. Good employees want to develop new knowledge and skills in order to improve their value in the marketplace and enhance their own self-esteem.
4. Create a healthy working environment – Creating and maintaining a workplace that attracts, retains and nourishes good people is crucial for staff retention. This covers a host of areas such as a safe, pleasant, inspiring work environment to creating clear, logical and consistent operating policies and procedures.
It’s not healthy to work like a dog. Companies with superior retention rates are the ones that recognise that wellness is essential to productivity.
5. Develop creative compensation schemes – Effective compensation schemes stem from one fundamental principle: money alone will not retain most employees. In the old days, companies essentially paid people for their time. Today, more and more companies pay for performance – in every position, not just sales. To retain employees, your compensation plan needs to incorporate this trend.
Smart employers use a variety of hard (monetary) and soft (non-monetary) employee compensation strategies to make it difficult for other companies to steal their people away.
So what is your 2015 staff retention strategy looking like? How high up the management team’s agenda is it? Want some help? Get in touch.