Retaining top executive talent in today’s highly competitive market is becoming more and more challenging regardless of the industry you’re in. Take heed of these top drivers of high employee churn and start retaining your company’s top staff for longer.
A high turnover rate can be costly for any company, affecting both the bottom line and internal culture. According to the Human Resources Institute of New Zealand, the cost of losing a staff member who has been with the company for 12 months or more will cost you three times their salary.
What’s more is New Zealand’s national turnover rate currently sits at 18.8 per cent, the highest it’s been since 2008, as reported by the annual New Zealand Staff Turnover survey.
The retention of key managerial and executive staff is critical to the success of any business. While a pair of fresh eyes can prove invaluable, the depth of knowledge, insights and experience long serving staff members bring to the table is commonly what drives day-to-day operations and provides opportunities to focus on business development, revise strategy and plan for future growth.
If you want to improve your staff retention, it may be the right time to consider some of the most common employee complaints, which consistently prove to be key concerns across a variety of industries. You can then counteract these complaints by introducing new internal policies and procedures to create a positive, engaged workforce.
1. Salary competitiveness within the industry
One of the biggest employee complaints is the lack of attractive pay packages relative to what the market may offer. If you’re in an industry where there’s a skill shortage or demand for specialist expertise, it’s important to stay abreast of what competitors are offering in terms of remuneration. This may mean adjusting salaries for long-term employees, based on performance, to ensure you’re matching what they may be offered by other forward-thinking organisations in the market.
2. Internal pay equity
Disparity in pay for the same role is a sure-fire way to create dissatisfaction among employees. While it is up to each individual to negotiate perks in their cost-to-company package, it is vital for companies to communicate their fair pay policy regardless of gender, age or sexual orientation. Employees should feel united in their mutual respect for the organisation they spend eight or more hours working at every day. There’s nothing that divides professionals as quickly as a difference in pay packet, especially if it isn’t justifiable.
3. Feel-good lifestyle benefits
Company benefits offered to employees are becoming important levers when it comes to the retention of top talent. Perks such as financial advice, life or trauma cover, a mobile phone allowance, flexible hours and work-from-home opportunities can all contribute to the retention of staff. A company’s internal culture, including workplace traditions and social events, can also play a factor when employees are faced with choosing to stay with their current employer or move to a new company.
4. Internal succession plans or growth trajectory
Another common complaint of unhappy employees is the lack of a growth plan or opportunities for role development. Provide your top talent with the option to grow within the company by making time to create internal succession plans and put new procedures in place to nurture talent earmarked for senior roles. Career training, upskilling and other professional development opportunities can provide employees with the necessary skills they’ll need to move up the ranks. If high-achieving employees understand that exciting roles may be awaiting them should they continue to perform, they may be less likely to move to another company searching for growth opportunities.
Your people are your greatest assets, particularly when they’re motivated, valued and given a positive, proactive environment in which to work. It is a known fact that companies which provide autonomy, creative opportunities, competitive salaries and a caring, connected environment will generally outperform those that take a more streamlined approach.
If you want to develop and maintain the platforms, processes and systems to support an engaged workforce that is committed to your business, contact us today. We’d love to chat.
The Decipher Team
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