Why Focus On Employee Retention ?

Every organisation invests time and money to attract and hire the most suitable people.  All this time, energy and money can be wasted when employees choose to leave your organisation for better opportunities elsewhere.

Employee attrition rates are increasing daily and are a matter of concern for many employers. When an employee leaves, the same lengthy recruitment cycle has to be undertaken to fill the same position.  Furthermore, the cost of acquiring new employees can be greater than retaining your current ones.  Clearly, in today’s economic climate, employers must invest heavily in a range of retention policies and strategies to ensure your employees remain with your organisation for a long period of time.  Neglecting employee retention can result in a weak talent pool, which will ultimately affect your organisation’s future.

Why Do Employees Leave ?

There are many reasons why employees leave an organisation for opportunities elsewhere ;

• Some employees leave an organisation out of frustration and constant friction with their superiors or other team members
• Low salary or  lack of  motivation may compel an employee to look for a change

However, if you were to actually ask employees what it would take to improve employee retention, more autonomy and increased responsibility would rank just as highly as increased salary as well as more involvement in decision making, more appreciation, better communication, more team building and flexible work conditions.

And yet, very few companies list leadership development as a top priority in their retention programmes. Rather, more money is devoted to better compensation, bonuses, stock options and work/life initiatives.

Offering leadership development opportunities is a key retention strategy and can offer your organisation competitive advantage !

 What is leadership development and how can it lead to employee retention ?

A sense of stagnation in the work place is one of the major reasons why employees leave the workplace.  Many employees are always on the lookout for growth and better opportunities. Employees should not be given the chance to feel bored, but must be challenged with new responsibilities. Very few employees want to remain where they are, but most aspire to climb the career ladder in some form.  Organisations which can offer employees increased leadership and growth opportunities, to acquire new skills and knowledge and to progress within their organisation will be able to  have a greater hold on their employees. 

What is  effective leadership development ?

•  Skills development  – work with your employees to identify their skill sets and strengths and their suitability for other positions and career development within your organisation. Provide ongoing development to help managers become coaches, so they can become better motivators of those who work for them, more adept at managing different personalities and work styles and more effective at balancing the needs of the organisation with the needs of its employees.

• Career planning with your organisation – a  strong career plan will provide your employees with a sense of hope in the future and comfort in the fact that you, as their employer,  are concerned about them as an individual.  Balance company goals with your employee’s personal goals.  A contented employee is one who has an equal mix of successful professional and personal lives and one whose employer shows that they value and understand personal goals. Assisting employees to find new positions within your organisation may be the best and most direct way to influence them to stay. Organisations often subconsciously erect numerous bureaucratic hurdles that make moving around tough, or they simply do not offer ways for an employee to learn about possible openings. If employees stay challenged and in continual development, they will generally remain with your organisation.

• Empower employees – The success of your business in today’s economic environment  requires  empowered employees. Everyone in your organisation – including senior leaders, line management and rank-and-file employees – can benefit if you are willing to offer autonomy over task, time, team and technique.  Empowering employees leads to employees displaying loyalty and willingness to support the longer term goals of your organisation. Empowered employees are more efficient and more engaged.  Employers that empower their employees will outperform competitors.

How can you find out more about leadership development as  an aid to   staff retention  ? 

Leadership development  is core to global resource solutions provider, Ten Live’s, Engage© programme, a framework for employers to aid staff retention. If you would like to find out more about Ten Live’s Engage© programmeother staff management-related services , please contact Joanne Telfer at Ten Live on 01236 702007 or email: joanne@tenlivegroup.com

Or download our complimentary whitepaper on staff retention  here ;

http://info.tenlivegroup.com/6-organisational-techniques