In the latest episode of the My HR Partner Podcast hosted by Karen Hillen, the discussion centred on a crucial aspect for small to medium businesses (SMEs): employee retention. Given today’s competitive employment market, especially post-pandemic, maintaining a stable and experienced workforce is essential for any business to thrive.
Why is Employee Retention Critical?
Karen Hillen emphasises that employee retention is vital not just to save on recruitment costs but also to retain experienced employees. The cost associated with hiring, training, and equipping new staff can significantly impact the bottom line. More importantly, keeping experienced staff maintains corporate knowledge, which in smaller businesses often remains undocumented.
Inexpensive yet Effective Retention Strategies:
The strategies to enhance employee retention don’t necessarily have to involve high costs. Being a great place to work involves creating an engaging atmosphere where employees feel genuinely valued. Recognition can be as simple as thanking employees or could involve rewards like a bonus leave day or a cup of coffee. Personalising these gestures greatly enhances their impact, making employees feel truly recognised and valued for their contributions.
Engagement over Costly Perks:
Karen doesn’t think that expensive perks to retain staff are essential. Instead, fostering a positive culture and displaying regular appreciation of your employees can go a long way. She discusses the value of simple activities, but meaningful interactions, such as a boss taking a different employee for a coffee walk each day. Such interactions not only make employees feel special but also build a connection with the management, encouraging loyalty.
Turning Challenges into Opportunities:
Understanding why employees leave is as important as why they stay. Common reasons include a poor relationship with other team members or supervisors or inadequate recognition. By fostering open communication and regular reviews, businesses can address grievances before they lead to resignations.
Scenario Response – Retention at its Core:
Karen describes a scenario where a valuable employee might resign unexpectedly. She recommends a personal approach: invite them for an informal chat, maybe a coffee or lunch and discuss their reasons sincerely. Such direct communication can sometimes lead to understanding specific issues like conflict, workplace bullying or dissatisfaction in their role that can be addressed to prevent the resignation.
Conclusion:
Employee retention is crucial for all businesses but especially for SMEs when cost of recruiting can be expensive and time consuming. With proper recognition, a supportive culture, and genuine interest in each team member, businesses can significantly enhance staff loyalty. Karen concludes that recognising and valuing employees is a fundamental strategy that extends beyond just thinking about employee retention but it contributes to developing a robust organisational culture where people like coming to work.
For more insights or to book in a personalised consultation, Karen Hillen’s services can be explored further on her website at https://www.myhrp.com.au
