There are lots of articles surrounding this issue at the moment but are businesses really planning long term? Many businesses are pulling recruitment and looking to reduce employees hours but are there other ways of doing drastic money saving exercises? Yes there are, even the most affective industry is ignoring the blanket cost cutting exercises… the banking industry have published statements saying they will keep paying bonuses otherwise they will lose talent.
A recent article in the People Management magazine regarding The War on Talent report found that while a quarter of the 705 respondents have had to downsize, 97 per cent have consciously preserved their top talent. A further 18 per cent of firms are actually placing more emphasis on identifying, developing and retaining talent.
It is time that HR professionals show they can deliver what they preach, but helping an employee retain their job through this difficult period also means that they keep them when the recession is over and other businesses don’t tempt them way once the economy has recovered.
As previously mentioned the banking industry is openly stating they will keep paying bonuses despite making a loss and being bailed out by government. However, what if the publicly known retention strategy turns customers away for life? A true HR professional these days has to be aware that things they do affect the business directly, having no customers as a result of a public HR strategy has to be a bad move.
I personally feel that within the banking industry the HR professionals have not thought about the greater impact on the business, yes they will keep the top talent but they might not have any customers!
Could they not have altered their long term thinking and offered an “on hold” policy on the incentive scheme, which would then reward employees more in the future as a way of thanking them? Therefore, their retention strategy would be more affective because when the economy has recovered, their employees could possibly end up being greater rewarded and the business would regain customer support.
When we think of retention we need to remember we need a business to employ the employee.
We constantly hear on the news about redundancies at the moment, does this mean that businesses don’t have to worry about retention techniques because there will be more people to recruit from? Well I believe the opposite is true. Being able to keep your best employees and helping your employees to feel secure in their job will help your business to come out of the “recession” a much better business.
Some businesses might make some redundancies as a quick win solution for cutting costs but this will negatively affect the company in the long run. Good examples are what Vauxhall and other car companies have had to do. They are being open and honest with their employees and hopefully the employees will recognise this and in the long run it will benefit the company. Too many companies will terminate employees contract, but will find it more expensive to replace them in the long run and lose confidence in staff they keep and future potential employees.
Business is not about the quick win solutions!
Whats the difference in a well organised office?
Will answer the question soon!
Knowledge Banks are an ideal way of coping with the major issue of capturing the vital knowledge of your experienced staff. We are experiencing the start of a problem of an aging workforce and a skills shortage issue with younger potential employees.
I believe that utilising Knowledge Banks and working directly with the education system to guarantee education is relevant, using your experienced employees to bridge the gap solves many problems in a cost affective and efficient way.
FULL ARTICLE COMING SOON!
A hot topic currently in the news is the public sector pay schemes.
In the public sector pay increases are around 3-4 % on average across the sector, which is above the rate of inflation 2.1% and inline with the “experts, true” rate of inflation, 3.9% but is it enough?
Private sector businesses seem to recognise that retention amongst their best employees and pay increases occur and reflect the efforts. You make the company money and they will pay you accordingly! The average pay increase in this sector is around 5-10%.
Public sector businesses have seen pay increases of around 2.9%, however some believe the true value to be lower. Public sector businesses have more restrictions and don’t have the advantages of operating to make a profit. I believe this to be the main reason why pay increases are limited. It is difficult to obtain authorisation for pay increases in private companies, never mind a new pay scheme that has to be passed by government.
In my opinion private sector businesses run to make profit, thus it is sensible to invest in the assets that make you your profits. The main and most common retention technique involves pay increases, but where private sector businesses excel the most is with putting together a bigger overall salary package through extra benefits, bonuses and training and development to increase retention.
Private sector businesses tend to have higher and bigger pay bands, yet the Public sector businesses are the soul of the nation, teachers, nurses and police, shouldn’t steps be taken to increase their pay? They might not make some shareholders money, but support the infrastructure and economy private sector workers can be productive at work.
Due to the skills and necessary drive to increase the retention within the Public sector, the basics of a good salary structure that reflects the true benefits and demands of the employee in that job should be in place. Businesses should implement retention techniques to keep the skills, knowledge and best practices within the organisation. If pay is an issue why can’t experienced experts within the field be offered “ Advisor/Consultancy/Coaches/Mentors” roles to train and pass on knowledge before you cannot retain them any longer?
Welcome to HRRetention.com, the best blog on the web for retention techniques!!!
So close, yet so much to do…
We aim to have our website and blogs fully running by 2008!
Welcome to HRinvasion’s blog about Employee Retention techniques and practices. We have only just developed this site so please bare with us while we transfer and populate information!