Keys to Staff Retention

Contents

• Career Development
• Office Environment
• Remuneration
• Summary

Job satisfaction is a key motivator in evoking optimal performance and a positive can-do attitude, but that can change if an employee feels like they’re no longer achieving their own career goals.

Have you considered how the goals of your business operations might align with that of an employee’s own career progression?

It’s crucial to understand how your business may provide an employee with the opportunity to progress, while simultaneously work towards the key outcomes of your business. A common interview question will be ‘‘What do you hope to achieve working here?”, but have you asked the question again since hiring them?

Revisit the conversation with your employees around how their values align with that of the organization to promote an environment that’s mutually beneficial for employer and employee.

Consider how you might be able to provide training to refine their skills, or present them with opportunities within your business for your employee to continue to grow.

It could be worth having the conversation with your employees sooner rather than later, before later is too late!

Office Environment

Many workplaces have moved to creating more socially dynamic working environments for staff in varying ways and capacities, and it definitely has its benefits.

BLG Director Peter Ryan, pointed out in an earlier blog 'How to Build a Winning Team', that setting time aside for team bonding activities can provide staff the opportunity to connect with each other beyond the confines of the office or job site.

If your staff see the importance of creating a positive and social workplace, there’s no telling how far that positivity may reach to promote your business as a desirable workplace. Word of mouth could be doing the job advertising for you!

Remuneration

Basic economics teaches us that when supply is short and demand is high, prices drive up in a competitive fashion to acquire the good or service.

The labour market is no different. With unemployment at record lows, offers from competing businesses to poach employees is a much more prevalent risk.

But can you afford to lose that staff member?

Discussing pay can be somewhat of a sensitive topic for some, with an apprehension towards discussing increases. However, that dollar sign is a massive factor when it comes to an employee choosing to stay or move on, particularly if they believe there is a better offer on the table elsewhere.

As such, it’s critical that employees pay rates are reviewed on a regular and consistent basis to ensure employees feel valued.

Researching what the going rate is for your industry and your employees’ current position, qualifications and skill-set will help you determine if their remuneration is a fair reflection of their value and output.

Be prepared to negotiate ensuring that you provide context and valid reasoning for the figure you arrive at.

Summary

Employee retention is crucial for business success. It allows your staff to feel safe and secure in their jobs, provides a positive perception of the business both internally and externally, improves productivity by having people who know the business rather than retraining new people, and it can also lend a hand in improving future recruitment rates.

So make sure you employ some of the above tactics to increase the odds of keeping staff, but do it in an informed way. Basically work out what your employees like, what they feel they’re missing, and do what you can to fill those gaps to make them feel happy and valued.

If you need help with your employer obligations around STP, superannuation and more our team are here to help you out. BLG Business Advisers are Wollongong Accountants who service all across Australia, so talk with us about your situation and gain advice specific to your needs.