Why Employee Retention is crucial in our current climate!
As the economy continues to fight against a second wave of COVID, businesses are still being challenged in ways that could either make or break their business. Contributing to this includes the struggle for businesses to retain their key staff members during the 2022 “Great Resignation”. New data from the Australian Bureau of Statistics (ABS) has revealed the national turnover or ‘quit’ rate rose to 9.5% over the year to February 2022 – its highest level since 2012. As I scroll through my Linked In feed and see new job posts shared by my peers daily, it is evident that this trend doesn’t look like it’s slowing down anytime soon… (Reference below 1).
SEEK is reported to be recording job ad levels 23.3% higher year-on-year and 52.4% above June 2019 (Reference below 2) which is why retaining workers is now harder than ever! Many employers are combatting this trend simply by increasing their recruitment efforts. We will show you the best way to retain your staff and how it can benefit both the worker and you as an employer.
Get your EVP right
EVP or also known as your Employee Value Proposition, entails the sum of all the benefits and rewards employees receive from the organisation.
According to Pawar and Charak (2015) they define the employee value proposition as the one-of-a-kind arrangement of benefits an employee gets consequently for the skills, capabilities, and experience they convey to an organization.
Your EVP is the core of your Employer Brand and should characterize the substance of your organization and why it is unique.
Tell the real story
It is so important to make sure you know and tell the real story to potential new employees about your work environment, position challenges and team maturity. We believe that every single person is exactly right for the right role but it is up to us as managers/hiring managers to correctly reflect the challenges and opportunities (good, bad and ugly). For the right person, the potential challenges are the things they enjoy.
Provide an effective training process
One of my favourite sayings is ‘if you don’t have time to do it right the first time – when will you have time to do it again’. As a guide – it can take on average up to 3 hours per day to properly onboard a new team member for the first 4 weeks and then at least 5 hours per week to manage them on an ongoing basis.
It’s important to provide quality training during your onboarding process. Make sure your employees are well trained to mentor your new team members across the business and their roles. If not, your new employees are more than likely to make mistakes and will struggle to meet your standards and requirements.
One of the most important things to make sure you cover early is your Values, Vision, Mission, and standards. This will set the tone, so your new employees know what is expected as a team member and what the ‘norms’ are around your workplace!
Positive environment and reputation
Companies that are seen as ‘unstable’ and show ‘cracks’ through constant staff turnover and negative online reviews, will have employees either leave or turndown job offers to be part of their organisation.
If you maintain a high employee retention rate, this will strengthen your organisational brand and position you as an employer of choice in the market. This reputation will be critical in attracting future employees.
Create and nurture a strong culture by building relationships, celebrating employees’ achievements, and providing a healthy work-life balance. This is a signal to others that you understand your people and that your company is worth working for!
Reduce Hiring Costs Significantly
Hiring new employees is a task that requires a lot of time and budget to facilitate correctly! In a survey of over 1500 HR professionals from Australia and New Zealand, ELMO Software, in partnership with the Australian HR Institute, found that the cost to hire an employee more than doubled in 2021, rising from $10,500 in 2020 to $23,860 per worker (Reference below 3). Skyrocketing in the last couple of years! Bad hires can now cost a business up to 2.5 times the salary of the employee (Reference below 4). If you are a larger organisation that continuously hires hundreds of new faces a year, this number can multiply exponentially.
5 – https://www.aihr.com/blog/employee-value-proposition-evp/
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At BespokeHR we deliver a variety of leadership development activities through coaching, webinars, online training, and intensive face-to-face workshops. We have a range of public leadership, management, and human resource management-related programs to meet the varying needs of your organisation.
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