The results of a recent Recruitment, Retention and Turnover Survey by the CIPD revealed that there had been an increase of 9% in the number of organisations reporting retention difficulties since the previous survey in 2006. The majority of employers are now aware that candidates have increasingly varied CVs and the once favourable 'job for life' is now more myth than reality, so perhaps it isn't surprising that the main reason cited for employees leaving was to change careers. The second most common reason for employee resignation is promotion within another organisation, highlighting that as well as moving into different careers, employees value recognition of their skills and experience through increase in responsibility and reward.
As retention of staff has been highlighted as an increasing problem, organisations are looking to different solutions:
- Ensuring that recruitment procedures allow the selection of the best possible candidate, both for the position and for the organisation. Employers spend a large sum of money on recruitment and then providing induction and training for new employees, therefore retaining employees can reduce these costs. Those involved in the recruitment process need to ensure that the job is accurately advertised and that there is clarity about the skills, experience and personality of the individual required both to fill the position and to fit into the company. Psychometric testing can prove to be a useful tool during the recruitment process.
2. Rewarding employees through good salaries, benefits and recognition of their contribution through promotions is a good way of improving
employee loyalty. Whilst salary is important to employees, only 39% of employers surveyed stated that leavers expressed dissatisfaction
with their salary, implying that other benefits might hold a significant role in staff attraction and retention. Employers can offer childcare
schemes, share options or, increasingly, a range of flexible benefits options. The good news is that advances in IT have brought flexible benefits management solutions within the reach of all but the smallest employers.
3. Providing non-financial benefits for employees, which for some people can be seen as more advantageous than monetary rewards, is
becoming an increasingly popular retention strategy. This could include consideration for flexible working, opportunities for employees to
socialise in an informal environment or a positive working environment. It is difficult to work out which benefits to offer to interest the majority
of employees, and these may need to be assessed and reviewed over time. Flexible working practices seem to be important to employees
when selecting a company to work for and according to companies surveyed by the CIPD in a study into the impact and implementation of
flexible working, 74%
believe that introducing these practices had a positive effect on staff retention.
Employee retention is important to prevent loss of expertise, the costs of training and to create a stable and productive workplace. However, whilst staff retention is desirable, managers must recognise that some employees desire wide ranging careers and will always be looking for a new or different job, and trying to find ways to satisfy these career needs within the company could help to decrease staff turnover.
If you would like advice or information on recruitment or improving staff retention rates,
please contact Nicky at HR Advantage - nicky@hradvantage.co.uk or call 01494 451681.
