Strategies
for Retaining Staff
From Nicole Gorton, Director,
Robert Half International
www.roberthalf.com.au
Retaining qualified
employees is a challenge all companies face. Having the right staff
directly impacts an organisation’s ability to maximise productivity
and achieve business goals. According to a Robert Half International
Survey, 52% of finance departments are actively or passively looking
for a new job and many companies are not aware of this alarming
statistic. Specific to Audit and Tax, 20.5% are actively looking
and 35% are passively looking. The impact of staff leaving can
have a detrimental effect on the business as a high turnover of
staff can drain resources and undermine efficiencies. Further survey
results revealed that 42% of Audit and Tax staff had been in their
role for under a year and only 43% had tenure of one to three years.
The theory remains
that it costs a company three times the candidate’s salary
to replace them. This includes a loss in productivity – both
in the role itself and by colleagues who are affected by staff
leaving and creating morale issues. It also includes a loss in
knowledge; and for the Manager, a loss in time spent in the core
business as time is taken up with hiring (which can be very time
consuming to find the right person) and training. Back filling
a role in most cases is counter productive verses recruiting addition
staff.
There are a number
of reasons why employees leave an organisation and to a large extent
it is this insight that will empower the employer to retain its
staff. For an employer it is vital to know what motivates staff
on an individual basis.
- Better
career development potential
Where an employee feels they can not get the exposure and career
expansion in their current position they will look elsewhere. Promoting
from within is not always easy but many companies that succeed
in keeping their turnover manageable make it a practice of promoting
current employees where possible before considering outsiders.
The key here is grooming employees for promotion.
- Salary
This is one of the most important factors driving motivation. While
it is true that it takes more than money to keep your employees
satisfied and productive, it is also true that employees that
feel they are underpaid are not happy in the job. 74% of employees
have their salary reviewed on an annual basis. 69.5% of candidates
believe it is necessary to move companies in order to gain
greater bargaining power in salary negotiations. The infrequency
of salary reviews may be the reason why the majority of respondents
feel the need to move companies to increase bargaining power.
When an employee works for less than their market worth a company
will pay the difference in the long run.
- Work
environment
The culture of an organisation often sets the scene for a happy
and productive working environment. In a lot of cases companies
rely primarily on salary and ‘perks’ to prevent employees
leaving. Our experience shows that additional factors, most notably
a lack of respect and recognition causes as much employee dissatisfaction
as insufficient compensation.
- Improved
work - life balance
It was revealed in a recent Robert Half International Financial
Directions Survey that senior accounting staff in Australia work
longer hours than any other UK and European Country (9 countries
surveyed). Ensuring that a department is not understaffed is one
of the key factors to a healthy atmosphere. It is beneficial for
an organisation to show flexibility in working hours by either
being creative with start and/or finish times, reducing ones’ working
hours or giving ‘time in lieu’ will assist in overall
productivity.
- Increased
responsibility
Management and senior finance staff currently work longer hours
when they could be delegating and empowering staff. Developing
staff by giving them increased responsibility is under-utilized.
Laying out milestones for each team member to achieve will allow
for delegation.
- Change
of career path
This is often overlooked within organisations. When employees want
to change their career direction usually they do not consider doing
it within their current organisation. Knowing the long term career
goals of each individual is vital to the success not just of the
individual, but it can also benefit the company.
- Overseas
Opportunities
Overseas experience is a definite bonus for accounting professionals
and viewed positively by future employees. However, how can organisations
take advantage of the benefits and overcome the threats posed by
global markets? Overseas travel is not a new trend within the Australian
workforce, but ensuring professionals return is. High salaries
and low tax structures seem to be the main lure for Australian
accounting staff to other countries. The reputation of Australian
accountants is ensuring that Australia is becoming an increasingly
fertile recruitment ground for overseas companies.
- Stronger
economy
Employees are aware that in a market where there is higher demand
versus supply they are in a position to negotiate and usually feel
more comfortable doing this with a new employer. It is known that
in a candidate short market where there is a global war for talent,
good candidates are being headhunted almost daily.
In order to retain
staff each organisation needs to implement a clear strategy for
staff retention:
- Hire effectively
in the first place. Know what you are looking for and set transparent
expectations of the position.
- Know what
motivates your staff. Ensure you are working for the individual.
- Let your
people know they count. Praise is often as good as a pay rise.
- Promote from
within. Ensure to provide opportunities for advancement.
- Conduct regular
salary reviews. If possible every six months in line with market
values.
- Develop a
team environment. Include and empower staff in decision making.
Team spirit comes from management.
- Provide extra
benefits. This in turn will bring benefits to the employer.
- Conduct exit
interviews to understand why employees leave an organisation.
- Work closely
with recruiting firms who have individuals responsible for attracting
the “Aussie Returner” and the International Candidate
coming to work in Australia.
Nicole Gorton
Director
Robert
Half International
|
|
In
this issue
Strategies
for Retaining Staff
Slam
Dunk with Jason Smith
Top
10 Business Tips
Marketing
Your Accounting Practice Through Powerful PR |
