Paul Levett commercial director for SHL Group sent a letter to People Management commenting that he is very concerned that major UK employers have cut their graduate recruitment schemes. Paul states that graduate trainees are the future managers and leaders, brought in fresh and eager to learn. I am a graduate only graduating from university a few years ago, I agree with the statement but don’t think that it fits with all graduates. I know a lot of graduates who believe the time they spent at university warrants the graduate scheme and the schemes are commonly seen as a set fast track route to the top without much effort.
Paul also states that with business commentators starting to talk of “green shoots”, it is crucial that employers continue to invest in talent. I agree again with the statement but I don’t agree that graduates are the only people to be able to offer this, there are a lot of talented people who never go to university. I believe that graduate schemes should not exist and that there should be one common “fast/acceleration” route giving the employer the option to add employees that have been identified during employment or direct from school/collage. Having one talent identification scheme can also be linked easier to an affective retention strategy.
People Management featured an article within their Law At Work section on 27 August 2009 about rehiring redundant employees. The article was very interesting calling the employees “boomerang employees” and stating that many US companies are already rehiring employees previously made redundant. The article is quite positive about the benefits of doing such practices and that it works in the businesses favour during recessions through various quotes such as “Rehiring ex-staff can be a quick and sensible fix. They know the business, have the right skills and usually require only a basic refresher course to get back up to speed.” It all sounds promising but I think it is a horrible mistake to think this, as any future retention scheme will be very difficult to sell to the employees.
The employees will have a bad view of the company affecting the culture, they know that the company will hire and fire as needed for short term gains. The cost of making someone redundant and then hire them again will mean that the business has spent quite a bit of money when it might of been able to better plan its HR resources ; save time, money and giving employees a positive image of the employer.
Planning a retention strategy is not just about the short term, when devising schemes and planning other aspects of HR practices retention should always be in the back of the employers minds to make sure it does not get neglected and lead to a negative impacted on the business.
The new pay code for city bankers is featured regularly at the moment; even I have mentioned it before in my blogs. The argument against the code is generally that it will drive away talent, but will it really? Other business sectors have high flying executives that get bonuses, they attract the elite or are very talented.
Retention is not just about money, it takes a lot more to develop a truly complete package than just a monitory reward. Big rewards do work over a year but developed over a long term i.e. 5 years there are plenty of other things that can be included. Job satisfaction is another away of retaining staff, the banking industry is well known for being stressful taking some stress out of the bankers role might appeal to some.
It’s all about building the complete retention package that works for both the employee and employer.