Employee retention –  The best tools and measures

Employee retention – The best tools and measures

Employee retention is about keeping hold of your best employees so that the employees have the feeling: “able to go but happy to stay“. Employee retention measures can be applied to a rational and normative level. Rational commitment is based on the costs associated with leaving the company. But, when work is done mainly for rewards and not for the sake of the action itself; the measure misses its original purpose, and the employee loses his enthusiasm at work.

An ideal employee experience during the entire employee journey sounds simple, but organizations that succeed in motivating employees and allowing them to do the right things are scarce. The Gallup Engagement Index – a study on job quality shows that out of every 100 workers in a company, only 15 people have an effective commitment – a high emotional attachment and voluntarily commit themselves beyond measure to their employer. They identify with their department and with the products of their company. Retention management requires structural work to improve the employee experience based on a well-structured employee journey.

Selective employee retention: No one likes to throw money out the window

We must admit that there is always a certain level of turnover, whether voluntary and avoidable dissatisfaction of the employee. Employee turnover, when it has a moderate level, can have a positive impact: it is then synonymous with new ideas and approaches.

Some time ago, an article appeared about staff turnover, “why Amazon offers employees up to $5,000 to leave the organization”. It can also be beneficial to let people leave via natural turnover. However, high turnover is associated with the necessary costs. It also seizes the other employees who have to train new colleagues and to fill unfilled job openings.

Keep your finger on the pulse:

It is essential for the company to put in place a strategy to retain their best employees, who represent a real competitive advantage. And accordingly, the measures should target the right employees. Experts recommend answering these questions:

  1. Which employees are hard to replace within the industry?
  2. Which employees hold key strategic positions?
  3. What are the causes of the turnover within your organization?

If you are not aware of this, we recommend conducting the exit interview. The exit interview can provide useful information when it comes to the reasons and cause of your staff turnover.

Some days and projects are more challenging than others. Talk to employees regularly and ask them how they are doing;

  • Are the employment conditions not aligned with the current time and market?
  • Is the workload too high?
  • Is the atmosphere not safe?
  • Are there too few career opportunities?

Problems can also arise due to an uncompetitive, unequal or unfair payment system. And, possible actions may include revision of wage levels based on market research and involvement of workers in the development and implementation of a performance appraisal system and a payroll system based on results.

Define the long-term vision:

New employees without proper training may experience an “adaptation crisis” when they start work.

Discuss the future perspectives of employees.

Help them set and achieve goals.

Identify whether employees are interested in this. Provide regular, informative and understandable feedback. And,

Find out what the training options are.

It is necessary to develop and launch training programs and training series that allow you to speed up for new employees the process of acquiring and learning the basic skills; skills and knowledge necessary for the successful start of their work activities.

In the past, companies mainly invested in younger employees, who then remained with their entire working life in the same company. Nowadays it’s no longer like that. Today, older employees are often more loyal. No doubt – it is also necessary to invest in them – depending on their individual qualification needs.

 

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Taking on a New Employee – are you ready?

Taking on a New Employee – are you ready?

How do you know when you’re actually ready to start taking on an employee?

The main thing when you are thinking about bringing a new person on is are you financially ready to bring on a person on board. We suggest as small business owners think about how much you are going to pay them.  Make sure it’s within the award as well, and make sure its the right award including all the allowances such a leave loading, broken shifts etc – that’s why it’s important. And you need to put that money aside for a period of three months. Put it into a high interest savings account and then just save it all up. And if you can afford to pay that every single week for three months, then it looks like you’ll be financially in a position to employ someone.

There’s nothing worse than bringing someone on board and finding out that you cannot pay them. You don’t want to do that. You know if you get to the three months and find that maybe it’s not the right thing, cause you’ve had to think about it as well, then you’ve got a little investment pot as well.  You will also need to think about what kind of employee – casual, part-time or full-time. If it’s occasional (casual), then you’ve got a bit of more flexibility. But if you’re a permanent part-time/permanent full-time, you’ve got a notice period to pay as well.  You want to make sure that you can afford that, that you’ve actually got the funds there. You don’t want to back yourself into a corner, that’s for sure.

You also need to think about 

  • Finding the right candidate
  • registering as an employer
  • carrying out employee ID and background checks
  • providing a contact and employment statement
  • payroll and correct payments to the awards
  • Sick pay, holiday entitlements and public holidays
  • plus insurances

There is a great guide written by Doug Kelly (Paulette from Fresh HR Insights has contributed to) all about employing staff for the first time. You can grab it HERE

The type of employees that you choose is a very important decision and you need to be aware of the legal ramifications relating to each and manage them accordingly and appropriately. Follow ‘best practice’ to reduce the costs, minimize legal exposure and develop an engaged workforce.

Types of employees

  • Permanent full-time
  • Permanent part-time
  • Casual employment
  • Non-employees such as independent contractor
  • Labour hire workers

Your business has its own set of unique operational requirements and what meets your needs won’t necessarily meet the needs of another. You can find more details in our fact sheet, Grab it by using the link below. 

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