Retaining talent is critical to the long term success of a company. Managers spend a lot of time, effort and money in the hiring process to screen and select the best possible employees and they definitely need to retain that talent.
Employee turnover has a high associated cost and various estimates show what that could be. According to a study by the Society for Human Resource Management, employers need to spend the equivalent of six to nine months of an employee’s salary in order to find and train their replacement.
Other research shows that the average costs could be even higher. In a study conducted by the Center for America Progress, the cost of losing an employee can be anywhere from 16% of their salary for hourly, nonsalaried employees, to 213% of the salary for a highly trained positions. According to business experts, a new employee can take up to two full years to reach the same level of productivity, as an existing staff member. During this time productivity of the department may suffer.
Apart from the above, there are other reasons as well, the key one being employee retention which is a crucial measure of the well being of your organization. If key employees of your company are leaving, very soon others in their departments will also start looking for other positions.
So, in the highly competitive business world of today most companies are starting to value their top talent and try to retain them. Remember that salary and other benefits may have been the reasons for an employee joining a company but these are not enough to hold them over a period of time.
SO WHAT IS ?
- COMPANY ENVIRONMENT : Employees want to be part of an exciting and alive environment which absorbs them and makes them feel part of and an asset to the company. Managers should know them by name, be aware of their abilities and what their contributions are towards meeting the objectives of the department/company. The freedom to raise their voice and give input about changes that are required, encourages a feeling of ownership and an environment in which people are comfortable providing feedback. Employees should feel at ease to offer ideas, feel free to criticize and commit to continuous improvement..
- QUALITY OF SUPERVISION : “People leave managers not companies” is a very true adage. If a company is losing good people then it is essential to look to the Manager. A manager has a critical role to play which starts with defining clear job descriptions and expectations from the employee. They need to ensure goal setting in collaboration with their team. If a manager does not fulfil his/her role this will contribute highly towards employee turnover. When an employee leaves an organization they are taking knowledge, experience and contacts/customers with them straight to the competition.
- OPPORTUNITIES TO GROW AND DEVELOP : Talented and fast track employees need to be provided with opportunities to learn and grow in their careers. They need to be provided with education, training, and opportunities for skill development. Challenging and stimulating work will help to challenge them and blossom in their careers. A career-oriented employee needs to be valued and provided with opportunities to grow within the organization. They should be aware of the career path in front of them and the development plans plus opportunities available for them to grow in the future.
- FAIR AND EQUITABLE TREATMENT : The perception of receiving fair and equitable treatment by an employee is extremely important. If an employee observes that a newcomer receives a higher salary or in case of a sales position the territory with high revenue or potential, then the chances are that they will be on the lookout for another opportunity. In the same manner a new employee receiving a high salary increase or promotion in a short duration of time will also affect the morale of other employees. Management should know that information like this never remains confidential and many talented, high performing employees have left organizations on the belief of inequity and unfair treatment by the management..
- RECOGNITION AND REWARD : A culture of recognizing performance goes a long way to promote retention and job satisfaction. Recognition should be very specific so that the employee being recognized and other colleagues are also clear on the reason. Recent studies show that when an employee feels unappreciated and undervalued by their bosses and organization they begin to look for other opportunities. Recognition could be a thank you, pat on the back or in the shape of gifts, monetary increases or bonuses which is definitely more appreciated. All these help to motivate and retain staff.
Above all, having an effective hiring process helps to build a foundation for your future talent requirements. Always focus on choosing candidates who fit the job requirements and the organization culture. You will achieve a high retention rate and have motivated and loyal employees who contribute to the success of the organization.
The most successful companies recognize that human talent is most essential for growth and success. The best companies these days are focusing on all available resources including technology, but ultimately appreciate that the creativity, passion and drive of high performing talent are the keys to the company reaching greater success.