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Employee retention is at the forefront of every business owner’s mind, especially when job vacancies are at an all-time high and the “Great Resignation” continues to hang overhead, with employees willing to look elsewhere if they feel their time and skills are undervalued at their current workplace.
Maintaining a retention rate of 90 per cent or above is seen as ideal, and so it is essential that business owners consider the wellbeing of their employees as an utmost priority. Otherwise, they may find themselves dealing with a turnover rate of above 10 per cent, which won’t look good to potential employees and stakeholders in the business. According to a recent LinkedIn report, 85 per cent of Australian business leaders are finding it challenging to attract top talent right now, highlighting the need to retain current talent.
Luckily, there are a number of ways to not only maintain high levels of employee retention but also show your respect and admiration for devoted employees who care about the company as much as you do.
It starts from the hiring process
To begin with, hiring the right people in the first place is incredibly important. The most skilled candidate for a role may not be the most beneficial contributor to a company’s ethos – and keeping that balance in mind is important.
Someone who feels they are helping to build a company while also developing their career and skills is more likely to stay with a company than someone who is solely focused on advancing their own career and nothing else. Basically, if someone loves the workplace they are in and the people they work with, that can go a long way, especially in a situation where an employee sees a job elsewhere that may present a higher wage or better title but is missing real purpose or value for the individual.
As an employer, you also have to offer an environment in which people can see themselves in the long term. This means good benefits, structured incentives, formal training/upskilling programs, and clear, sensible policies on everything from remote working to leave allowances.
Offer incentives and transparently discuss career progression
This is mentioned frequently, but it is very important in the current job climate. Employees want to feel valued – and the best way to accomplish this is to foster a workplace ideology that benefits everyone equally while also acknowledging individual circumstances.
Providing clear career progression is a huge priority for the new generation of workers. People want to see how they can continue to grow within a company while also moving up the ladder – and communicating this in an honest, effective, and accountable manner will ensure individuals feel valued and understood. Within a small team or business, I’ve found it beneficial to be open and honest about the path to promotion, yet a commitment to focus on their development.
Offering incentives that align with company culture is also a win-win approach.
For example: at GoCardless, we have “GC Fridays”, which are quarterly wellbeing days when the entire company has the day off, as well as three fully paid volunteer days each year for staff to work on causes that matter to them.
Reward hard work and ensure the workload is fair
Having structures in place that ensure hard workers feel seen and rewarded is a big first step to keeping talent within the organisation. As a leader, it is important to recognise the effort your team puts into their roles, especially those that go above and beyond to achieve results. Whether this is through email, a gift of acknowledgment, a face-to-face conversation or something else, communicating to your employees that their work is valued will do wonders when it comes to maintaining retention.
On the topic of communication: I learned very early in my career that there is a difference between delegation due to a lazy leader and delegation to give people a reward for the work they are doing within their core role. Communication sets clear expectations, and it also allows delegation to link perfectly with development plans. Creating employee groups to develop company initiatives, build efficiencies and seek out solutions to work capacity chokepoints is also another way to rectify workload issues.
Even with these safeguards, asymmetrical workloads are not always visible. The solution is deceptively simple: keep communication open! Asking for help or flagging when a timeline or deliverable is untenable should never be seen as a failure.
Build a positive, enticing work culture
There are some important cultural touchstones that any successful leader needs to embed in their company from the very beginning.
Firstly, a solid company vision that can be defined and repeated. This extends not only to the service or product offering but the business’ internal mentality. You need to ensure it’s something that employees can easily repeat and believe. You also need strong visibility at all management tiers – especially if your company promotes an “all-hands-in” culture.
Just as important is the ability for individuals to incite positive change in the business at any level, no matter their seniority. We’ve found success to this end through our employee resource groups, but there are many approaches, and it’s important to always audit these structures to ensure they are providing individuals with the value they’re intended to. In a workplace with a good culture, people can suggest ideas throughout the business, no matter their level, with real potential for their implementation.
A “good” culture in a workplace can be a difficult thing to define, but having worked at both ends of the spectrum, you know when you have an amazing culture. It’s a special feeling, and I certainly know an environment that creates greater results and improves employee retention is the hardest but most rewarding to create.
We have found fantastic success with the four tenets above, and while they may seem simple on the surface, making the conscious effort to ensure they are upheld within your corporate structure will garner fantastic results and ensure your team feels heard, happy and engaged with their work.
Luke Fossett is the head of sales at GoCardless ANZ.
RELATED TERMS
An employee is a person who has signed a contract with a company to provide services in exchange for pay or benefits. Employees vary from other employees like contractors in that their employer has the legal authority to set their working conditions, hours, and working practises.
Employee engagement is the level of commitment people have to the company, how enthusiastic they are about their work, and how much free time they devote to it.
