According to a recent survey released by LinkedIn, organizations all over the world are struggling with serious talent crunch. An increasing number of employees are striving to seize the brightest opportunities possible, a prospect too tempting for professionals to wait. The aspirations of landing a better job and earning more is making employees reconsider their options.
The survey by LinkedIn shows that 85 per cent of the total workforce is either consciously searching for a job or is open to discussion to recruiters about significant employment opportunities. This figure, which stood at 80 per cent in 2012, also includes employees who are happy and content with their jobs. In such scenarios, employees tend to leave their existing employer to join another company. Also, there are cases where companies searching for great hires may fail to retain their existing high performers. This is a cost too huge to be borne as employees are the biggest asset of a company.
The study was an exit survey that took into account the responses of 7,530 LinkedIn members from the US, the UK, Canada, Australia and India. These individuals had recently switched jobs. The results showed that in India, 12.6 per cent employees resigned voluntarily and their exit could have been prevented. This figure stood at 10.3 per cent in the US, 8.3 per cent in Canada, 7.7 per cent in Australia and 7.3 per cent in the UK.
Reasons for change:
The old saying about employees leaving their managers, and not companies, may hold true in some cases. However, employees do leave their companies, especially if given opportunities that can boost their careers.
There are a number of factors that can influence an employee to switch from one job to another. The final decision of an employee is always based on one of these factors, some of which can be may be preventable. Here are a few factors that can convince workers to move on:
- Factors influencing change: Higher compensation and benefits, better work-life balance and more opportunities for growth and progress.
- Factors compelling change: More opportunities for growth and progress, better leadership from senior management and higher compensation and benefits.
How to retain employees:
Building a strong and successful team of professionals may seem like a task, but retaining them is even more difficult. High employee turnover may lead to loss of productivity and precious time.
Here are a few useful tips that will help employers retain their employees –
- Offer a competitive pay package according to the need of the employee – It is high time you saw the real worth of a good employee. To retain a person, you must provide health insurance, a retirement savings plan and life insurance. Even though many organizations offer these, employees may still remain unsatisfied. If possible, try to offer beneficial work options like telecommuting and flexible timings. These practices go a long way to demonstrate that you care and are not rigid.
- Offer extra perks – Think of what pleases your staff? Is it free hot dogs on Fridays or pick and drop dry-cleaning services. All this may seem small and insignificant at your position, but it may help someone better manage his/her life. If it helps them sort their lives and gives them relief, it will eventually raise their productivity at work. They will only appreciate it and are more likely to stay.
- Reward them to keep them motivated – You can use incentives like contest prizes to encourage the employees. When implemented in the right way, this tactic will help inspire employees, encourage team spirit and boost their enthusiasm towards their jobs.
- Increase interaction and conduct a stay interview – Other than conducting exit interviews to find out reasons as to why employees are exiting, consider asking existing employees what makes them stay. Answers to questions related to the work culture and their relations with their bosses and colleagues can bring out useful information which may help improve employee-retention strategies.
- Promote them whenever possible – It is a wise decision to promote employees internally and provide advancement. Employees tend to get frustrated and will stop trying if they don’t see a bright future for themselves in your company.
- Foster development – Train your staff to acquire a new job skill. You may also start tuition reimbursement to help promote the education of your employees.
- Build transparency between management and employees through communication – Conduct regular meetings where employees ask questions and offer suggestions. Keep open-door policies encouraging employees to interact frankly with their seniors without being scared of the repercussions. Make the managers coach their teams. This will help the good performers move on to better positions and this will help minimize bad performance.
- Communicate the organizational goals – Talk to the employees about the company and keep them connected with its mission and vision. Making people feel connected is a good way of keeping them emotionally and mentally tied to the company.
- Offer financial rewards – Reward employees with stock options when they meet their goals. This will make them stay on for a predetermined period, like three to five years. You also need to give meaningful raises annually. Nothing increases an employee’s zest more than an annual increment. Pay more to the top performers. You may build a bonus structure according to which their annual bonus amount can be decided. On meeting their set performance goals, employees will get this bonus.
- Appoint a capable HR professional – If the organization is big enough (with nearly 100 employees,) then start considering delegation of responsibility by hiring managers. Try to recruit a human resource manager who will supervise and streamline the overall processes and employee structure. This will take a huge burden off you and the new hire can ensure the employees are treated well. HR professionals are also more in tune to the latest employment trends and laws. They will help you set up programs and perks most suitable to both the company and the workforce.
Author: Devika is from Naukrigulf.com