Retain staff with these 5 top tips

Because of the COVID-19 pandemic, millions of people worldwide quit their jobs in a so-called ‘Great Resignation’ that occurred in the United States, Canada, Europe, Australia – essentially, most Western countries, including New Zealand.

Down in Aotearoa, even the Government saw challenges to staff retention, especially in the Ministry of Business, Innovation and Employment (MBIE), the very government department that monitors staff retention in its quarterly Market Labour Reports and Fact Sheets.

Before turning the problem around in 2021, MBIE faced a large turnover in key units. The troubled Building System Performance unit had 45 per cent unplanned turnover, the Building, Resources and Markets unit had 27 per cent turnover, Strategic, Policy and Programmes had 24 per cent turnover and Labour, Science, and Enterprise units had 22 per cent turnover. These rates were all fairly higher than the average national rate of 18.5 per cent identified in the 2021 NZ Staff Turnover Survey.

MBIE managed to improve retention and cut turnover in those units to as low as 9 per cent in the final quarter of 2021 – a significant achievement considering New Zealanders were being lured away in the same quarter with wages and unemployment at an all-time high.

How did MBIE restore its retention rates? The answer is MBIE turned its Employment Strategies inwards, focused on improving staff happiness and adjusted contract durations.

Considering there are so many factors which could potentially lure staff away, here are five great methods to stop you from losing employees and keep down the costs of lost productivity, recruitment and onboarding.

1. Give staff proactive learning and development opportunities.

LinkedIn’s 2018 Workforce Learning Report states that 93 per cent of employees would stay at a company longer if it invested in their careers. But how can you be proactive about creating the right continuous learning paths for your people? The publication HR Technologist recommends employers encourage managers and team leaders to actively pay attention in performance reviews and one-on-one discussions to what motivates people, what interests them, and where they see their careers leading. By actively listening to employees, employers are better able to provide learning and career opportunities that will keep their workers engaged, driven, and loyal. Remember, you can never have too many friendly discussions with your people!

2. Spotlight successes through employee recognition

Employee recognition strategies are vital to improving retention rates, according to the Society of Human Resource Management (SHRM).

When you recognise and express appreciation for the work that your employees are doing, you’re confirming that they’re a valuable part of your organisation. Failing to recognise the hard work and accomplishments of your people, puts their productivity and job satisfaction at risk and gives them little incentive to stick around. One survey by TinyPulse found that 21.5 per cent of employees who didn’t feel recognised when they did great work went on to interview for a new job, compared to just 12.4 per cent that did feel recognised – which goes to show, a bit of recognition for employees’ achievements, big or small, can go a long way – and will save a lot of money compared to the cost of replacing that employee.

3. Employee benefits are as motivational as salary

It’s not all about salary. Employees respond warmly to the various types of benefits employers can offer.

From flexible work conditions to allowances, insurance packages, stock options, and other financial rewards, you can present a competitive range of benefits that will have a significant impact on keeping your employees engaged and happy. Increasing leave entitlements above the minimum requirements (such as introducing long service leave) can also support long-term staff retention.

4. Healthy working spaces make your workplace desirable

Any company promising a more social, more relaxed, more modern place of work is at risk of tempting your staff to jump ship. A recent Forbes article looked at the impact of the physical work environment on employees. 93 per cent of workers in the tech industry in the United States said they would stay longer at a company that would offer healthier workspace benefits – even if just the basics like ergonomic seating or standing desk options. A healthy workplace should also have a healthy culture. Employees who rate their workplace culture poorly are 24 per cent more likely to leave an organisation within a year.

5. Be the business no one wants to leave

It can put your business under significant strain when talented and experienced employees resign, leaving you to fill the empty desk and the knowledge gap that they’ve left behind. Filling the boots of a great employee is tough. Finding a talented replacement in today’s competitive talent market makes it even tougher.

Investing in retaining your awesome employees, rather than spending on recruiting new ones, can benefit your organisation in more ways than just saving costs; boosting performance, productivity, and morale across your workforce are just some of the advantages.

By focusing on these top five tips for retention, you’ll be well on your way to being one of those companies that everyone wants to work for and no one wants to leave.

If this article has raised any questions or concerns or you’d like to learn more about how we can help your business, please reach out to our workplace relations experts via our 24/7 HR Advice Line.