2021 was coined the year of the ‘Great Resignation’ with workers quitting their jobs in droves, and the trend is set to continue with research by PwC & Deloitte suggesting that 40% of workers are planning to change their jobs in the next 12 months. However recently, Treasurer Josh Frydenberg challenged the concept of the ‘Great Resignation’, preferring to call it the ‘Great Reshuffle’, and noted that employees who had changed jobs as a part of this movement had enjoyed significant increases in salary with reports of workers receiving increases in the range of 8%-10%. Business focus has now shifted to retaining your team through the Great Resignation.
So where does this leave your business? As employers, we all acknowledge that the cost of turning over staff is significant, and it is of course also time consuming, so how do you retain the quality employees you already have within your team? Shifting your focus to retaining the talent you already have in house rather than sourcing new staff will not only save you time and money, but in the long run your business will thrive and your workplace will be a positive environment for your team.
When it comes to effective staff retention strategies, one size definitely does not fit all. The most forward-thinking employers understand that each individual employee has a specific combination of drivers that motivate them, which then impacts whether they invest their talent and energies back into the company or start to look at options elsewhere. Therefore, the key is to understand your staff and what motivates them in the workplace.
Salary
Offering a pay increase is generally the ‘go to’ options for employers who are keen to reward and retain existing staff and it doesn’t hurt that it is generally well received by employees – I don’t think I have ever heard someone complain about getting paid more! But when you are considering offering cash incentives to retain staff there are options.
Retention bonuses are a great way to incentivise staff to stay with you for the long term. The concept is that the employee will be paid a bonus at the end of each 12 months that they stay employed with your business. This provides an incentive for the employee to stay as the carrot is dangling in front of them all year round rather than receiving a cash injection immediately, and the coin remains in your pocket for longer.
Whilst studies have shown that salary will always be a key factor in staff retention, it isn’t the only factor that staff consider when weighing up whether to stay with their existing employer or jump ship.
Flexibility
Work/life balance continues to rank highly for nearly every employee and if COVID 19 has shown us anything, it’s that many of us can work from pretty much anywhere. With many staff having relished the opportunity to ditch the commute for a time to squeeze in a run before work, swap out work attire for trackies and be home when the kids get home from school whilst still meeting work commitments, it is pretty clear that the option to work from home is going to be viewed fairly favourably by most employees. Consequently, the pressure is on for employers to look at more flexible work options, whether it is offering flexible work hours, or the opportunity to work from home.
Offering the opportunity to work from home 1-2 days per week, may be an attractive option for staff and seen as valuable as a cash incentive as they juggle balancing work and home life. This arrangement should be scaffolded with clear boundaries around expectations, solid policies around working from home, and we suggest 6 monthly reviews to ensure the arrangement is still working for everyone.
Being able to choose ‘when they work’ also ranks high on the list of priorities for employees looking for new jobs, something for employers to consider as they look at retaining their existing staff.
‘Flex’ time is another great low or no cost option for employers to create a connection with their staff that adds value to their employment. We have implemented this concept for a number of our clients with very positive outcomes. Staff are offered flex time to attend to family responsibilities. Family responsibilities might include attending children or grandchildren’s school events or sporting events, award ceremonies, family appointments or any other event that has meaning in the employee’s life. The purpose is to recognise the role that family plays in a team member’s life and allow them to time to engage with family without impacting their leave entitlements or having to make up the time.
Rewards and recognition
In a competitive business climate, retaining outstanding performers and improving employee productivity can also be achieved through employee recognition. As a result employee reward and recognition programmes are growing in popularity as they not only motivate employees to change their work habits and everyday behaviours to benefit the business, but also provide employers with an opportunity to ensure their high performers are recognised, celebrated and rewarded.
The program doesn’t have to be complex, what really matters is that the employee feels appreciated.
Career planning and professional development
Career planning and professional development offer endless benefits to both the employee and the employer and is probably one of my favourite ‘employee retention’ concepts. As I see it, it is a win win for everyone.
Firstly, you have an employee who gets the benefit of learning new skills whilst working and is generally more motivated and productive in the workplace as they feel valued and important because their employer is investing time and money into training them, and therefore more likely to retain their employment. Secondly, you have an employer who is engaging with their employees, and not only gets the benefits of a happy and engaged team, but also reaps the rewards from a skilled team who are adaptable and confident.
Workplace culture
A negative or ‘toxic’ workplace culture is one of the most common reasons for employees leaving a job, outranking salary in most instances. A strong workplace culture is critical in any business, but it is even more critical for businesses aiming to retain their existing talent. Creating a positive work environment which encourages communication, sharing of ideas, employee recognition, team building, and wellbeing are crucial to a positive atmosphere and culture.
Be The Change
Your business doesn’t have to become a victim of the Great Resignation if you develop a strong culture of communication, flexibility, reward and recognition, and opportunities for growth and development within your organisation. Effective Workplace Solutions can advise you on how to implement these systems into your business so you and your team can thrive.
Karen Arnold – Managing Director
Disclaimer: This article provides a summary only of the subject matter without the assumption of a duty of care by Effective Workplace Solutions. No person should rely on the contents as a substitute for legal of other professional advice.