Surely retention is the last thing a business can think about at the moment?

Given the economic pressures most businesses are facing at the moment most would assume that a retention strategy would be the last thing on a businesses mind? Yes most of the time the news is full of businesses going into administration and struggling, but I believe that a few businesses have proved how vital a retention strategy can be. Some businesses have had to adapted by reducing the number of hours each employee works to reduce overheads during the dip in sales. Working out the costs of redundancy and rehiring/training when the time is right it makes perfect businesses sense to look long term and have adaptive strategies to suit.

Recently I’ve come across some businesses that seem to approach different strategies altogether, with blinkers on and being driven by money they seem to make quick decisions that suit their needs that month. A month or so later the business is trying to fix the issue by bringing in a consultant to bridge the gap! Why pay more money and have to try and fill the gap of skills lost when you could better plan, not only long term does it save money but it shows to your employees that you won’t just terminate their contracts as a quick solution. Working with your staff and together to solve business issues will lead them to feel empowered and more productive.

 

 

4 thoughts on “Surely retention is the last thing a business can think about at the moment?

  1. Pingback: CFA Institute

  2. daveaudley Post author

    I would say it is even more important with the current business climate. With uncertainty and potential reduction in employee numbers it is very important that the correct employees are retained so that when the business is in a position to expand and grow once more then the correct knowledge and skills are there to deal with it. Retention is not just about the employee but knowledge, skills and attitude. Often it is the knock on affects of decisions businesses make that cause the success or failure of the plan.

  3. Stefanie Z. Gamble

    This is probably one of the trickiest endeavors upon which a small business can embark because of the type of strategy required in retaining employees who you believe add value to your organization. Developing a retention strategy requires special skills in determining which employees are likely to seek opportunities elsewhere and which of them are most valuable to your business. Retention incentives can range from bonuses to professional development. Succession planning can also play a role in your retention strategy. If your human resources department is constructing a succession plan, identify the most promising employees who show aptitude for climbing your organization’s ladder. Salary increases are another retention strategy, although it’s a difficult case to make when employee compensation is modified in ways that cannot be justified in case questions arise. Raising the salaries of employees you want to retain–simply because you want them to remain in your employ–can backfire and is not the ideal method of retention. Depending on the employees you intend to retain through salary increases, your business may be unfairly accused of discriminatory employment practices. Consult the U.S. Equal Employment Opportunity Commission for information about the Equal Pay Act of 1963 and the Lilly Ledbetter Fair Pay Act of 2009. Weigh the costs of spending money to retain certain employees against the cost to hire. For employees whom you’re unsure about retaining, it may be a better decision to recruit for a replacement and assume the cost to hire.

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