What Does it Take to Retain Your Staff?

The business landscape is constantly evolving with shifts in organisational structures and new ways of working. While this could be viewed as a positive change, it can also leave employees feeling unclear about how they can progress and develop to reach the next step in their career ladder. A recent survey from Mercer Human Resource Consulting showed that fewer than two-thirds of employees (64%) in the UK are satisfied with their jobs. With job satisfaction at a significant low, employers need to consider making improvements to the workplace to retain top talent.

What has Changed in the World of Work?

Before ‘business casual’ was introduced in the 1990s, the workplace was often a rather inflexible place. Nowadays, modern work environments are much more compliant, where work-life balance is championed.

Employees today have increased bargaining power, the job market is highly transparent, and attracting top-skilled workers is a highly competitive activity. Companies are now investing in analytics tools to figure out why people leave roles, and the topics of purpose, engagement, and culture weigh on the minds of business leaders everywhere.

The world of work is different than it was twenty, ten, or even five years ago. Digital advances and expectations from a new generation of workers have shifted the way we produce and collaborate, transforming the workplace, and our lives. As the workplace continues to evolve, employers must continually meet the demands of employees.

The Impact of Employee Turnover

Across industries, demand continues to cause recruitment and retention difficulties for many employers. The Spring 2019 CIPD Labour Market Outlook Report found that roughly two-fifths (41%) of employers had difficulties in filling vacancies over the past year, and close to one third (33%) say that it has become harder to retain staff. Upskilling remains at the forefront of employers’ responses to such difficulties. More than two in five (43%) employers say that they have upskilled existing employees to fill hard-to-recruit-for vacancies.

Employee turnover has a negative impact on any organisation’s performance and future growth goals. By understanding the reasons behind staff turnover, employers can devise recruitment and retention initiatives that reduce turnover and increase employee retention.

The Role of Pay in Motivating Staff

Pay plays a significant role in employee satisfaction, but is increasing staff pay a definitive solution for solving retention woes? A Deloitte Review suggests that pay compensation is an important factor in employee satisfaction and can be a top driver in retaining talent, however, it does not necessarily impact employee engagement levels in an organisation.

It’s a common misconception that staff are only concerned with the financial benefits of a role, and that if their employee packages are satisfactory, they won’t complain. The fact is, people are far more likely to leave a job for personal, abstruse reasons than purely financial influences.

Could offering an employee a larger salary in a bid to retain them be symptomatic of larger problems within an organisation? It is possible there is a lack of learning and development opportunities, or perhaps management issues and staff shortages. While offering employees an increased wage in a bid to retain top talent may seem like the best option, you could be ignoring the underlying issues and dissatisfaction felt within employees.

As an employer, it is important to think about the role of employee engagement, and the impact offering more to the employee experience could have in improving staff retention. Interestingly, according to Glassdoor, four in five people prefer new benefits over a pay raise. A generous benefits package is now more essential than ever in attracting and retaining top talent.

The Role of Employee Engagement

Employee engagement is a workplace approach that will significantly lower the risk of staff turnover. When successfully implemented throughout a business, having an effective employee engagement strategy in place can transform your organisation with lasting results, and will result in happy, committed and motivated employees.

The importance of employee engagement cannot be overstated – employee engagement strategies have been proven to achieve up to 5 times more revenue growth, reduce staff turnover by 67%, improve productivity and efficiency by up to 50%, retain customers, and potentially increase profits by as much as 20%. When employees are engaged and happy, it impacts everything they do. They become more productive, enthusiastic and work more efficiently.

Motivating Staff Beyond Pay

Staff motivation should always be on top of your priority list. A business thrives when its people thrive. If your employees don’t feel valued, then your business is at a huge disadvantage. Business growth depends on your talented employees; keeping them engaged, motivated and creative. As work and life boundaries interweave, anticipate employee needs in and out of the workplace by offering more to the employee experience.

One of the most obvious ways an organisation can retain employees is by rewarding them. Benefits and pensions are great tools for keeping staff and preventing them from seeking new opportunities elsewhere. Offering employees an attractive package that upgrades their lifestyle, engages and motivates them, will help to retain them within your business. Improving employee engagement brings a whole range of benefits, but most importantly – it makes it easier for you to hire and retain the people you need!

At MIT we empower employers to meet employment demands by offering expert consultancy and a wide range of business tools to support both employer and employee. The solution comes equipped with a high range of lifestyle and well-being benefits for every employee to enjoy .

Develop an engagement strategy that works for your people and keeps everyone motivated and focused, which in turn will allow your business to grow and thrive. When you unleash the power of engagement, attracting and retaining top talent is easy. Learn more about how you can benefit from our unique approach to enhanced employment, here.

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