Caliam HR Newsletter - June 2007 | ||
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 Jon Phillips Past Newsletters
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| | With widespread skills shortages in the UK labour market staff retention becomes a hot issueAccording to the Chartered Institute of Personnel and Development (CIPD), two thirds of employer’s report that they are struggling to retain key workers. Replacing them can prove to be a headache. Besides the recruitment costs, employees can take vital skills, knowledge, and business relationships with them when they leave, which can seriously damage the business. The impact on your business Effective employee retention can have a huge impact on your organisation and should be a key part of your HR strategy. Research has recently placed the ’cost’ of recruitment within the UK at an astonishing average figure of £9,766 per person. But there are hidden costs too. Calculating the value of lost opportunities is nigh on impossible. How do you calculate the value of lost expertise and knowledge critical for your business? Not easily, but then what about the potential loss of clients? Negative morale within the organisation Not to mention the negative morale implications for the remaining staff as they try to cover the gaps and keep the organisation on track. On average, it takes 12.5 weeks to fill a managerial or professional vacancy. So what can you do to address the issues? Firstly, and critically, you need to know why your key members of staff are leaving. Exit interviews, when handled correctly, can provide key information to help establish which areas need addressing. Flexible working can improve staff retention Secondly, and of equal importance, you need to know what your staff want from you as an employer. Recent CIPD research also showed that 86% of companies that had introduced flexible working arrangements reported an improvement in staff retention. Staff surveys and focus groups can be useful tools in helping you retain your key staff. Asking them what improvements they would like to see in the business can be a powerful motivator. Retention begins with good recruitment practices. Be professional – represent both the job and the company accurately from the outset. Remove the opportunity for any future leaver to claim that the job or the company was not as described at interview. Reward managers who retain key staff It is important for businesses to ensure that they reward staff effectively throughout the organisation. Rewarding managers who are successful in retaining key staff within their areas highlights their critical role and the value that the organisation places on this activity. Provide opportunities for staff to contribute to the business – consultative forums on issues of relevance to them. Whilst the knowledge of job security and stability remain key reasons for staying with an employer, for some the key may lie in the value of being able to contribute outside of the actual job performed. Succession planning is key Planned succession and career management and planning within an organisation helps communicate and reinforce the organisation’s commitment to an individual (45% of leavers left for ‘promotion outside of the organisation, whilst 30% quoted ‘lack of development opportunities’). Without any such process in place, a vacuum may exist which can be exploited by competitors and by recruitment agents. Taking this further, why not refuse to do business with agents who poach your staff? Finally, be seen to be operating with honesty and integrity. Perceived unfairness is an often-quoted reason why staff leave an employer. The individual concerned certainly won’t be recommending that employer to another friend or colleague. There is no clearly identifiable point at which retention becomes a critical issue. This will vary according to many factors, such as the geographical location, the size, industry and nature of each individual business. However, by putting in place some proactive plans, businesses may be able to minimise the disruption that an unwanted departure may cause. What can you do to reduce staff turnover? At Caliam we can help you focus on developing strategies to retain your key employees and reduce the costs associated with a high turnover of staff. Call 0845 241 2828 to arrange a no obligation free two-hour consultancy session. Try our services for free.
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Copyright Caliam HR 2007 | ||