Creating A Great Working Environment – it’s the little things!
Staff retention is currently one of the hottest topics in Recruitment & HR, and for good reason!
With salaries continuing to rise and competition for candidates still high, replacing staff can be costly and time consuming, with potentially catastrophic knock-on effects including an overstretched workforce and a decrease in production, client/customer service, and other critical areas of your business.
In our last blog post we looked at how to attract (and keep) the perfect employee, but here we look at the little things employers can do to create a pleasant working environment and increase staff retention, even if salary & benefit flexibility is limited.
As a recruiter we are tasked with sourcing, connecting with, and introducing skilled candidates to businesses based on their needs. What comes AFTER a successful introduction, however, is somewhat out of a recruiters hands.
I was recently surprised to learn that only 17% of those responsible for recruitment calculate the cost of labour turnover, with just 12% collecting data to improve staff retention!
So what are the statistics surrounding staff retainment, how can you improve your own numbers, and when is parting ways sometimes for the best?
What the Stats Say!
The average turnover for UK workers (excluding retirements) is 26.9%. That’s over 1 in 4 of UK workers who will leave their employer, potentially for a competitor, every year!
Recruiting a member of staff should be seen as an investment and, depending on the role, you would hope this member of staff will be with you for a minimum of 5 years (although ideally a lot longer!). With this in mind, let’s take a look at the average length of service in the UK, according to the Annual Population Survey provided by the Office for National Statistics:
<6 months – 10.4%
6-12 months – 8.9%
1-2 years – 10.6%
2-5 years – 22.4%
5-10 years – 18%
10+ years – 29.7%
Whilst the average length of service is fairly high, it is shocking to see that 19.3% of employees part ways with their employer within the first year of employment (some surveys suggest this could be even higher)! This statistic is what has inspired me to write this post and share some advice from my own experiences, as well as some examples of what my clients have done to keep this number below the average.
The Interview Process
Like many things in life, it all starts with first impressions.
Every candidate you see could be your new superstar, so do not underestimate the importance of first impressions for the candidate. According to two separate surveys, a positive experience makes a candidate 38% more likely to accept a job offer, whereas 42% have declined a job offer due to a negative interview experience. As well as the actual interview itself, make sure your candidate knows where they are going, where to park, and who to ask for on arrival.
Remember, if a candidate is not right for you, be sure to let them (or the recruiter) know and give them feedback. If a candidate has made time to see you it is the very least they deserve, and failure to do so can damage your image, your reputation, your brand, and make it difficult to attract the best people in the future.
Team Fit
Something you will likely be considering during an interview is the team fit and compatibility with other members of staff. Almost every candidate I speak to stresses how important this is for them too, so believe me when I say the candidate will also be having these thoughts! Poor team fits are one of the biggest reasons for employees leaving within the first year. In fact, this can be just a matter of weeks!
During the interview itself, the best placed person to judge the compatibility between the candidate and the company is the interviewer. Recruiters work with businesses of all shapes and sizes, so unless you have had a thorough discussion regarding team fit beforehand, this vital assessment lies solely with the hiring manager / interviewer.
From experience, candidates who meet other members of the team at the interview stage immediately know whether they fit in with your company culture. Introducing the candidate to members of the team during the interview process will add to the positive candidate experience.
The Offer
This deserves its own post, but it is never wise to offer a salary that is below what the candidate has asked for as their minimum.
Not only will this have a negative effect on your image, but if they do accept your offer they will likely be looking for (or at least be open to speaking with) other companies who can offer them what they want. In this situation, do not be surprised if they let you down before their start date or leave shortly after.
If you do receive a strong applicant that is above your salary range, be honest and let them decide whether they are still interested. Honesty and communication is the best way to navigate these situations.
Onboarding
The positive candidate experience does not end when an offer is accepted. It is essential to make new hires feel welcome and start the relationship on the right foot. Failure to do so will result in your new employee looking at other opportunities throughout their probation period (while they have a short notice period!).
Retaining Your Employees
Now you have made a successful hire, the focus should be on creating a positive working environment to maximise the chances of a long, successful partnership. So what makes a happy, successful and productive workforce?
Leadership – It may sound obvious, but being a fair, respectful and empathetic leader will have a huge impact on productivity and happiness within your team.
Communication – What do your staff value the most? What will improve their working experience? What do they dislike the most? Communicating with your staff on a regular basis and encouraging honest dialogue is the best way to assess the working environment and ensure a happy workforce.
Reviews / Appraisals – These are essential for employee development, but also provide an opportunity for your employees to express any concerns in private.
Policies & Procedures – I know, not the most exciting thing on this list, but ensuring your staff know what to do in various situations is important and cannot be overlooked (this includes keeping up to date with legislation and making necessary changes).
The most effective way to retain your staff is to listen. Knowing what is important to them allows you to make changes and implement new, modern ideas that can be the difference between your employees leaving or staying.
It’s The Small Things
As recruiters, we speak to candidates every day of the week. This gives us a great insight into why candidates look for new opportunities, which is usually due to a lack of appreciation, communication, and connection with their leaders. But as well as the bad, we also hear the good, so here are some small and cost-friendly examples that some of our clients have implemented that have had a positive impact on their workforces:
Lunches – The most sociable time of the day for many workplaces. We have more than one client who let their staff vote and order lunch from a different place every week, giving their team (and different departments) a chance to get together and socialise. For one of these clients in particular, the staff who work remotely come in once a week just for this!
Let Your Staff Decide – One of our clients have several ‘cultural ambassadors’ who are tasked with improving and maintaining company culture, reporting into the leadership team with ideas for improving the working environment. Not only will this save your own time, but you also hand control to the very people you are trying to keep happy.
Charity & Team Days – All of our clients understand the importance of team building. A team day out, or even a dinner, can be a great way to create or improve staff bonds within your business, especially when you have new starters! Charity work is also a great way to improve team bonding.
Consideration for EVERYONE – This is very broad, but it is important to consider every individual within the team. A recent example from one of our clients was the Managing Director buying soft drinks for a new member of staff who was the only person who did not drink tea or coffee. The candidate made of a point of telling us as they felt valued from the very start! Do not underestimate the effect small things like this can have on your employees.
When is it best to part ways?
I am a huge believer in employers doing everything they can to create a happy workplace to ensure employee longevity. But, is there a time where it may be best for the employee and the employer to part ways? I believe there is.
After a good period of time within the same company, employees can sometimes be faced with the difficult decision of leaving in order to further their career and personal goals. As good as their relationship with the employer may be, it is unrealistic to expect them to stay in the same position and salary level for the rest of their working life. This is, of course, completely unrelated to the working environment, and in many cases involves an honest and transparent conversation between both parties.
As the employer, the best thing to do here is to be understanding. Sometimes, in these situations, it may even benefit the business to bring in a fresh face with the motivation to drive improvements and suggest new ideas.
At LUXE Recruitment we love working with (and even just talking to) businesses who share the same values as we do, so contact us here to see how we can help.
References:
