Official figures show that in the three months to June, the number of people out of work in the UK fell by 57,000, bringing the unemployment rate down to 4.4% – its lowest since 1975. But although that’s good news for the economy, it also means that employers are facing more competition when trying to recruit top talent.
At PJW, we think of recruitment as a two-sided coin, alongside staff retention. A focus on recruitment only, with no effort put into retaining new employees, can result in a cycle where employees don’t stay for long and the employer has to regularly recruit new people.
Whilst staff turnover can be positive, bringing in new talent and perspectives to your organisation, recruitment costs are often significant – advertising to attract the right candidates, time spent sifting applications and interviewing, induction, and the time it takes for new employees to be performing in their role can take several months. So, it’s worth considering the alternative to unnecessary recruitment – retaining the staff you already have – and we believe that recruitment is something that doesn’t stop until the employee has left the building.
If you think of your employees as fundamental cogs in your organisation’s machine, you’ll value the continual development and growth which will help you keep your talent for longer. Retaining employees doesn’t mean hiring an employee who’s going to stay in the same role until retirement. Employees need a fresh challenge to keep them motivated and you need a flexible workforce to meet not the here and now but the next 5 years and beyond. Regular development reviews where employees are encouraged to consider their aspirations and for advancement consider broadening their capability instead of looking to advance outside the company. Investing in job-related training and further education will not only help your people in their current roles, it will increase their confidence in taking on additional responsibilities and support their desire for personal growth.
Recognition is vital to making staff want to stay. Make sure your employees know how their work contributes to the overall vision of the business by linking their objectives to the wider company ones. And remember to tell them that their work matters, and that their contributions matter – they will feel more valued and more motivated.
Lastly, there’s a saying that people don’t leave jobs, they leave managers. If you focus on recruiting the right managers and leaders with the right leadership capability and approach who care about their teams, communicate clearly and honestly, and support the development of their colleagues, those colleagues are more likely to be happy and want to continue working for you.
Happy people, happy customers, happy bottom line!