EMPLOYER GUIDE Recruiting & Retaining Employees
Transcript of EMPLOYER GUIDE Recruiting & Retaining Employees
www.myhr.works
Recruiting & Retaining EmployeesIN THE WAKE OF COVID-19
The importance of effective
recruitment, how to boost your
recruitment efforts, and the best
ways to retain top performers.
AU
EMPLOYER GUIDE
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AU
Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Why effective recruitment is so crucial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
How to supercharge your recruitment efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Sample interview questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
The next step: effective employee onboarding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Keeping good people once you have them . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Best employment benefits and perks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
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Introduction
It’s no revelation to say that COVID-19 has changed the landscape. In the space
of 18 months, our economic and social worlds have been through an intense
period of disruption, challenge, and change.
Australia has done better than many
countries in managing the health and
economic impacts of the pandemic and the
country is in far better shape than many
predicted. The economy has been one of the
few in the world to grow over the past year
and unemployment continues to drop (5.1%
in May 2021).
But we’re not out of the woods yet and the
ongoing impacts of our COVID-19 response
has affected industries and companies
unevenly. Some have steamed ahead largely
unhindered, others are experiencing a post-
recession boom, while others are still feeling
the impacts of lockdowns and restrictions.
The labour market is starting to see more
movement as the economy opens up, but
the country’s skills shortage has been
exacerbated by international and interstate
border closures. While many companies
are looking to hire to fill vacancies or meet
upswinging demand, there is a squeeze on
the number of talented candidates, especially
in the technology, marketing, mining, banking,
and HR sectors.
So in these exceptional times, employers
need to do all they can to find and hire good
people, get them quickly up to speed in their
role, and keep them in the business. These
recruitment, onboarding, and retention
processes should be focused on both
independently and as an integrated system
that supports every employee’s performance,
wellbeing, and ongoing development.
This white paper takes an in-depth look at
the importance of effective recruitment, how
to boost your recruitment efforts, the best
ways to onboard new staff and retain your
top performers, including the most attractive
employee benefits and perks.
Source: Hays Australian and New Zealand Salary Guide FY21/22https://www .hays .com .au/salary-guide
% of organisations who expect business activity to increase in the next 12 months
% of organisations who plan to increase their permanent headcount
% of organisations who plan to increase their use of contractors or temporary workers
% of organisations who expect skills shortages to negatively impact their organisation or department in the next 12 months
% % % %72 47 15 64
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Why effective recruitment is so crucial
It’s fairly obvious that every company wants to hire the best people it can,
but in a labour market facing a shortage of skilled professionals, effective
recruitment is more important than ever.
Sure, you could quickly whip up a job ad,
bang it up online, wait for applicants and then
select the one you warm to the most, but if
you expect to consistently get the best fit for
the role and your company, you’re going to
need to take a more structured approach.
Here are the top reasons for doing
recruitment well, whether it’s taking on a
part-timer to meet short-term demand or
replacing an experienced staff member who’s
moving on.
Secure the right talent
It’s often said that it’s better to hire no one
than hire the wrong person.
Having an effective recruitment process
means you start with a clear understanding
of what the business needs, then you
communicate that well to attract quality
candidates, and carefully select the one who
best meets those requirements.
It’s more than just finding the most talented
or qualified people. It’s about getting the
right talent for the role and the company;
people with the best possible skill-set and
the right personality for the team
and business.
Every stage is important, from defining
the job through to interviewing and
reference-checking candidates, and the
combined effectiveness determines whether
your new employee will turn out to be an
asset or a liability.
Keep good staff
High employee turnover can be a real killer
for your company’s long-term prospects, but
if your recruitment and selection processes
are effective, you will be far more likely to
consistently pick people who perform well
and remain loyal employees.
It’s all about using defined methods and
assessments (rather than gut feelings) to
identify applicants who will commit to the
role and the company’s mission, and then
successfully bringing them into the team.
If you are regularly losing people within
the first 90 days of employment, it’s a
clear sign your recruitment practices aren’t
up to scratch.
Increase productivity
An efficient, frictionless recruitment
experience increases the likelihood that
new employees will be more engaged and
motivated from the get-go, which improves
their long-term chance of succeeding in the
job and working to build the business.
Companies adept at recruiting...
had 2x the profit margin of those less capable...
...and had 3.5x higher revenue growth
In a study by the Boston Consulting Group
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A benchmark 2012 study by the Boston
Consulting Group into the relationship
between people management and financial
performance found that ‘companies adept
at recruiting enjoyed 3.5 times the revenue
growth and 2.0 times the profit margin of
their less-capable peers’.
Quite apart from the effect of their own poor
performance, hiring the wrong person can
create stress and conflict in the team, and
suck up management time that could be
better spent on developing your people and
the business.
Save time and money
Building a team of dependable, motivated
employees is best for the bottom line.
No one wants to waste all the effort and
money to attract, select, and establish new
hires only to find they aren’t up to scratch
or don’t fit, and you’re faced with retraining
them, or worse, back at square one, looking
for a replacement.
If your recruitment campaigns are
consistently good, you’ll be way more likely
to get the right person each time and have
the confidence you can do so whenever the
business needs it.
Reduce legal risk
The recruitment process forms the base
for the employment relationship, so having
rigorous, transparent procedures that you
follow for every new hire reduces the chances
of finding yourself in legal wrangles.
That means being sure you hire without
discrimination or bias, adhering to privacy
and human rights regulations, ensuring
your new employee is entitled to work in
Australia, and that you will provide the
minimum pay and conditions set out in the
relevant award, registered agreement, or
employment legislation.
If you and your new employee start off
with a clear understanding of the position,
each other’s expectations, and rights and
responsibilities, you will be less likely to need
to take remedial steps or end up offside,
which could lead to disciplinary action or
even termination (increasing the risk of unfair
dismissal claims).
Contribute to team diversity
Aside from the legal considerations, robust
recruitment practices that are free from
potential biases and discrimination helps you
create a stronger, more diverse team.
This is more than ‘feelgood’ rhetoric or box-
ticking. A diverse workforce that brings a
wide range of perspectives and approaches
is proven to be better for business
performance and resilience, with improved
employee engagement and retention.
It could be a balanced gender mix on
your board, a variety of ethnicities in your
customer service team so customers feel
connected to the people who are helping
them, or ensuring that you’re not just hiring
carbon-copy employees who won’t bring
fresh ideas and innovation to your team.
Being open to diversity also means
you’ll draw from a wider pool of talent
and be a far more attractive company to
potential employees.
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How to supercharge your recruitment efforts
Taking a methodical approach to finding and hiring the most adept person
for any role boils down to understanding and combining each stage of the
recruitment process so they form a coherent whole that is fully integrated into
your wider business strategy.
We call this adopting a ‘recruitment mindset’ that aims to consistently get the
most out of your recruitment efforts.
Here are our top tips:
Plan your workforce
Treat workforce planning and talent
management as an ongoing commitment to
the health and viability of your company.
It’s not just about hiring on immediate
(reactive) need, but being strategic and
hiring people based on what the business
will need in the future and where a person’s
potential might take them.
So instead of seeking to replace like with like
or only looking at a set of essential skills a
candidate needs to get the role, try to hire
people who have additional ‘softer skills’, e.g.
communication, problem-solving, teamwork,
leadership, which can really make a long-term
difference in your team.
You should also think about where someone
could go in the business, what opportunities
they have to grow (and help drive your
success), which then links in with your wider
employee retention strategies.
Obviously, this requires some effort and
insight, but if your business is going to stay
competitive and flourish, your workforce and
long-term recruitment efforts have to grow
with it.
Stand out from the competition
If your industry is facing a skills shortage,
competitive pay rates may not be enough
to attract the best talent to your company.
You also need to be a place where people
really want to work and one that can offer
a range of incentives, such as development
opportunities, career progression, flexible
work arrangements, and other benefits.
Before you start recruiting, take some time
to define what you are as a business and
the reasons why someone would want to
come and work for you. People have different
aspirations and commitments so you need to
understand them and then see how you can
best accommodate them.
Building a good company brand that is
honest and real is more than just window
dressing. If you bring people in promising
things the company cannot deliver, they will
soon learn the reality of the role, the culture,
and their prospects, and will struggle or leave
if their expectations don’t match.
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Offer development opportunities
Top employees naturally want to learn and
grow, so offering career development and
learning opportunities is a real plus for
candidates.
It is also gold for the business, regardless
of size or sector, especially if finding and
keeping experienced staff is an ongoing
problem. A casual waiter or bartender can go
on and run the floor or manage the cafe or
bar. Trade apprentices can get qualified and
then go on to run jobs or whole worksites
for you.
It’s not just about putting people through
training courses. Are there mentors and
peers within the company who can help with
upskilling and providing feedback (and be a
nonpartisan listener)? Can you rotate staff
and teams so multiple people have broad
expertise across the business?
If you are bringing in highly-skilled specialists
for short-term roles, include a coaching
component so your people can learn new
skills and the business can retain the
knowledge.
Interviewing: try to find the true person
There is a lot of conjecture about the value of
interviews in predicting a person’s ability to
do a job. But they still form an important part
of the recruitment process.
There is a real skill to interviewing and
creating the right atmosphere. You want your
candidates to relax and open up so you can
get to know them beneath the professional
exterior. Everyone is nervous, regardless of
experience. But you also need to ensure you
have enough structure so once you get past
the initial chat, you can objectively compare
candidates’ responses and not be overly
swayed by any biases.
Stay flexible
In times like these, being flexible and looking
at creative employment solutions is vital.
Some talented, experienced people will be
looking for opportunities as the economy
opens up. Others may be looking at switching
careers. Your business may not feel confident
enough to hire more full-time employees
right now, but you may be able to bring in
some great people on a casual or contract
basis. It’s a good time to explore all possible
employment arrangements, including
working from home.
A word of warning though. Disruptions
to the economy and changing times doesn’t
mean employers can overlook their legal
obligations. All employment laws around
being fair and reasonable, providing the
minimum National Employment Standards,
and paying (at least) minimum wages
still apply.
Stay in the market
Always keep a look-out for talent, even when
you don’t have a vacancy. Building a store of
good candidates (internal as well as external)
who can apply for a job makes recruitment
that much easier.
If you employ someone great and there are
other talented candidates who you can’t offer
a job to, keep in contact with them. If you
meet someone who stands out or you get
awesome service somewhere, reach out
and connect.
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Network and find people. There are lots of
ways to do this, via social networks etc. You
never know, the person you connected with
could be looking for a new challenge just as
your company needs a new star.Sample interview questions
This position
> Why are you interested in this position and
what was your motivation for applying?
> Tell me what you know about our
company, our industry and this position.
CV Review
> What accomplishments in your current
(or most recent position) are you most
proud of? Explain why.
> Outline the duties that take up most
of your time in your current (or most
recent) position. What are the top 3
things that you are measured on?
> Tell me what you like best and least
about your current position and why.
> Why did you (or why are you planning
to) leave?
> Who has been your favourite manager
in your career so far?
> Why did you like working for them?
Career
> What is your ultimate career aspiration?
> How do you hope this position will
contribute to your aspirations?
Performance
> Give me an example of when you
exceeded a sales target. What was the
target? How much did you beat it by?
What do you attribute to this success?
> Tell me about a time when you
converted a particularly difficult client.
What did you do to turn them around?
How long did it take? Would you do
anything differently next time?
> Explain how you would go about
identifying potential clients for our
company and connecting with them in
order to make a sale.
> Describe what you would consider to be
the unique selling points of our product
/ services. How would you emphasise
these to help grow our sales?
General
> If you were successful in securing this
position when would you be able to start?
What is your current notice period?
> Do you have any pre-arranged leave
we would need to factor in if you were
offered this position?
> Are you constrained by any restraint
of trade clauses in your current
employment contract that may affect
this position?
> Safety is very important to us. Do you
have any medical conditions or injuries we
should be aware of and which may affect
your ability to perform this job adequately
and safely? If so what are they and what
can we do to help keep you safe?
> What base salary and benefits package
are you seeking?
> Do you have any questions for me?
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The next step: effective employee onboarding
Finding the best person for the job is an important first step, but it’s what
happens when the person actually starts work that can make or break their
success as an employee.
Research has proven that a well-designed,
comprehensive onboarding (or induction)
programme helps new hires hit the ground
running. It gets the employment relationship
off to a healthy start, and dramatically
increases the chances the person will
become a skilful, valued team member who
wants to stick with you and you’ll want in the
business so they can help drive its success.
Onboarding should be a broad process
that gives each new employee all the tools,
information, and insight they need to become
an effective team member, while at the same
time integrating them with the business, its
people, and culture.
However, many businesses still approach
onboarding haphazardly, throwing new hires
into a role without much preparation and
support. But it’s far better to see onboarding
as an investment in the long-term health
and success of your employee and the
organisation.
Why onboarding is so important
Gets new employees up to speed faster
Few people have all the skills and knowledge
they need to do an amazing job on the
first day they show up for work. There can
be a lot to learn, from simple things like
getting acquainted with the building and the
company IT system to understanding the
demands and intricacies of the job itself.
Effective onboarding helps new employees
become productive members of the team in
the shortest time possible by fully preparing
them for their position and to support them
as they grow into it.
It’s in everyone’s best interests to fast-track
this bedding-in process. For the business, it
means any disruption or dip in productivity
is minimised and managers don’t have to
spend long hours training and orienting the
new team member.
Source: Brandon Hall Group’s 2015 Talent Acquisition Study
Companies with a strong onboarding process improve new hire retention by 82%
%82
Companies with a strong onboarding process improve productivity by over 70%.
%70
Source: Gallup’s State of the American Workplace report
of employees don’t think their organisation does a great job onboarding new employees.
%88
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For the employee, it makes them feel part of
an inclusive team that wants them to excel.
They will feel good about the decision to
take the job, the work they’re doing, and the
company, which sets everybody up for long-
term success.
Higher employee engagement and
job satisfaction
Like in any relationship, first impressions
count. New employees want to feel valued
and supported, and taking the time to
ensure they get off to a great start clearly
demonstrates that they matter.
Successful onboarding boosts confidence
and can play a big part in a worker’s job
satisfaction, and their ongoing commitment
and loyalty to the company.
It also gives employers and managers
the opportunity to establish rapport with
the new employee, learning about their
strengths, motivations, and aspirations. If
the employment relationship is based on
understanding and trust from the start, the
better the outcomes for the employee and
the business.
Better staff retention
The first days and months of a new worker’s
experience are vital to long-term employee
retention.
A benchmark 2015 study by research and
analyst firm, Brandon Hall Group, found that
organisations with a strong onboarding
process improve new hire retention by 82%.
These findings are backed up by the results
of a 2012 study published in the Academy
of Management Journal that found new
employees who don’t get adequate support
and direction in the first 90 days are unlikely
to last much longer than four months in the
job.
Keeping your staff turnover rate low saves
time and money in the long run. Frequently
hiring new people is expensive and time-
consuming. So there is good reason to view
onboarding as the key part of a process
to work with your employee to keep them
happy and motivated, and make it less likely
that they will look elsewhere.
Better customer satisfaction
A positive employee experience leads to
better customer experience, which improves
overall business profitability.
Research by Jacob Morgan, author of The
Employee Experience Advantage, found
that companies that invest in employee
experience are 4 times more profitable and
generate twice as much revenue as those
that don’t.
The employee experience starts with
recruitment and is expanded by the
onboarding process, which should train
employees as quickly as possible so there
is minimal effect on the company and its
customers.
If the process also inspires and motivates
new team members, giving them a sense
that the company is a place where they want
(not just need) to work, they will want to see
it succeed and to provide the best possible
service to your customers.
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Teaches about the company
culture and goals
The first few weeks are the perfect time
to introduce new employees to the values,
priorities, culture, and mission of the company.
Again, it’s about creating a positive impression.
Chances are, your new employee will know
about the company from the outside, but the
first days on the job are their first exposure to
how it works and feels on the inside.
A proper onboarding process can help the
new employee establish themselves as part
of the business while showing them how
their role contributes to the company’s wider
goals. It’s not just about learning about the
company and its culture, but connecting to it
and the existing team.
Done well, your new team member will
be more engaged and want to help the
company succeed.
Supports good hiring decisions and
quick recovery from poor ones
A solid onboarding process can help
employers and new workers decide if the
person or the job matches their expectations.
It’s in everyone’s best interest for this to
happen quickly, so everyone can move on.
When the person is right for the position,
effective onboarding provides a positive
introduction to the business. On the
rare occasions things go wrong, a good
onboarding process will help you identify the
bad eggs quickly and allow you to exit them
in a robust manner, with less risk.
In the Australian context, onboarding is
important to support good decision-making
if your business utilises probation periods to
assess new employees.
Under the Fair Work Act, employers are
protected from claims of unfair dismissal by
an employee during the probation period.
Having a properly structured and managed
onboarding and probation process will
allow you to assess new hires and deal with
those who don’t work out in a way that will
withstand scrutiny.
Sets a base for further learning and
development
In the modern work environment, employees
need to be adaptable and learn new
skills. While the learning curve is often
steepest at the start of a new role, people
thrive at companies that provide ongoing
opportunities to learn and develop.
The initial job training that forms part of the
onboarding process lays a good foundation
that should lead to a course of growth and
improvement. It’s a good time to find out
about your new worker’s career goals and to
design a training and development plan that
builds their skills and knowledge. This will
also help ensure they are motivated by, and
contributing to, the overall success of the
business.
Less stress
Starting a new job can be stressful. Sure,
there’s excitement in new opportunities but
they can also create anxiety.
A smooth onboarding process can allay fears
and make new people feel comfortable from
day one, giving them the information and
training they need to be able to concentrate
on their job rather than any negative feelings.
Having an established, effective onboarding
process reduces stress for employers and
managers too, so you’re not winging it each
time you hire a new person. Instead, you can
be confident that your new worker is getting
the best possible orientation, guidance, and
tools, so you can focus on assisting and
getting to know them.
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Employee Onboarding Checklist
Before an employee starts
� Send signed employment contract, including
Superannuation and tax forms.
� Confirm results of pre-employment drug and
alcohol screen (if required).
� Order any uniform, personal protective equipment
(PPE), and/or resources they will need to do their
job, e.g. car, computer, business cards.
� In the week before they start, give them a call to
welcome them on board, confirm their start date and
time, and who they should ask for when they arrive.
� Let your team know who will be starting and when.
� Spend some time planning their first day – who
will provide training, what do they need to do, is
there a buddy etc.
First day
� Make introductions to any other team members
and brief the new employee on what to expect
over the coming days. Show them the onboarding
checklist that explains the steps.
� Discuss the company’s core values, capabilities,
mission, and vision.
� Provide the employee with uniform/PPE, ensure it
fits and is of a professional standard.
� Take a tour with them to make sure they know
where:
� Tools, gear and resources are stored.
� The first aid kit is.
� To assemble for fire evacuation.
� Brief them on all workplace hazards.
� Review their job description and outline company
expectations.
� Set some key objectives to be achieved throughout
the trial/onboarding period; this will give you both
a yardstick to measure success against.
� Ensure they receive all relevant policies and
company materials, e.g. company handbook.
Allow them time to read through and be on-hand
to answer any questions. Give them copies to
take away and ask them to return them, with their
signature to verify they have read them.
� Make sure they have completed all required
health qualifications.
� Start training.
End of first week
� End of week catch-up — check in to see how the
first week has been.
� Ensure they have completed training
requirements and ensure they are properly
trained in the use of, and demonstrated mastery
of, all equipment and tools that they could be
required to use in the course of their duties,
including safety equipment.
� Check if they are still waiting on any resources or
meetings with people that would help them do
their job.
� Provide them with feedback, e.g. 3 things that
have gone well and 3 areas for attention or
improvement.
Review meetings throughout the
induction period
Set regular review meetings throughout the onboarding
period as this will provide you with an opportunity to
check all is going to plan and to make sure you are able
to take remedial action, if needed. Meetings only have to
be 10-20 minutes every couple of weeks.
Examples of things you may like to cover:
� How the person is measuring against their
objectives.
� What they feel has been going well, what their
highlights are so far, and why.
� What hasn’t gone so well and what could be done
differently. If there are skills or knowledge the
person needs or would like to develop, you can
start designing a training and development plan.
� If there are things they don’t understand about
the job and/or the company.
� Whether they have any safety concerns.
Once you’ve completed all the areas of the checklist, get
the team member to sign it, sign it yourself, then store it
with your employee records.
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Keeping good people once you have them
We always say that the easiest way to recruit a person is to not have to recruit
them in the first place.
While some movement in your workforce
is normal and bringing in new people with
new perspectives and ideas can be great,
regularly losing workers hurts, both in
financial terms and the time and effort it
takes to find a replacement, bring them
onboard, and train them to do the job. After
all that, there is no guarantee the new hire
will be as adept as the person who left, and
in the meantime, there can be a drop in
productivity and morale as other workers
take up the slack.
Research into employee turnover has
highlighted the need for companies to make
concerted, creative efforts to keep their top
employees for as long as possible, especially
in a labour market where skilled workers are
in short supply.
Taking a strategic approach to
retention gives you the best chance of
developing a stable, loyal workforce, so the
company can focus on hitting its targets,
while also being more attractive to other
highly-skilled workers (which bolsters your
recruitment efforts).
Traditionally, many small to medium-sized
businesses are so busy performing the
work that they don’t take a step back to
think about the way they organise and run
the company so employees stay happy,
motivated, and loyal. This sort of design
thinking does require an investment of
time and energy, but it is an investment
worth making.
If you treat your people well and show them
they are valued, they will have good reason
to stick with you and work hard to help the
business succeed.
Top strategies for retaining skilled staff
Employee retention strategies work best
when they encompass a variety of initiatives
and benefits that individuals can choose from
according to their preference.
Work with employees to figure out what
drives them, their aspirations and career
goals, then develop a personalised plan that
will help realise them.
Make sure this conversation is regular and
ongoing. What interests and motivates a
person one year will likely evolve over time as
their circumstances change.
1. Be proactive
38% of skilled professionals surveyed for
the Hays Australian and New Zealand Salary
Guide FY21/22 (https://www.hays.com.au/
salary-guide) said they were looking or
planning to look for a new job this financial
year, and another 39% are open
to opportunities.
No one wants to be turning over staff at that
rate, but many companies overlook the need
to have a long-term strategy for retaining
skilled people.
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Design a employee retention program to give
your top people reasons to stick with you.
Don’t wait until you feel an employee is going
to leave – or worse, you’re sitting in the exit
interview – and try to convince them to stay
or match another job offer.
Ensure you understand and can meet their
needs, whether it be better pay, career
development, more benefits, or improved
work-life balance. Not only will your skilled
workers be around to help the company
succeed, they’ll be able to pass on their
knowledge and abilities so you’ll be better
covered if you ever need to replace them.
Source: Hays Australian and New Zealand Salary Guide FY21/22https://www .hays .com .au/salary-guide
% of skilled professionals looking or planning to look for a new job this financial year
%38
% of skilled professionals open to opportunities
%39
2. Hire the right people
Recruitment feeds into retention and vice
versa. Before you even schedule candidate
interviews, you should identify the sorts of
skills, backgrounds, or personality traits your
top employees have in common. Understand
your company culture and pinpoint the
aspects of it that are particularly relevant to
the job.
When you start screening candidates, look
at how they might fit with the company and
the existing team, and whether they have the
skills to assist your business with its goals.
Look for those with longevity at previous
jobs, especially if the company went
through difficult times, or a person who
plays team sports or volunteers. People
who show commitment, are self-motivated
and interested in developing their skills
and careers will be more loyal than those
motivated by money and power.
Then, when you are ready to make a job offer,
establish clear expectations so you can avoid
misunderstandings or disappointments down
the track.
3. Offer career paths and
professional development
Plan for the long-term. While top talent may
naturally exceed in their roles, there’s no
guarantee they will want to stay there forever.
You need to understand how these key staff
see their career progressing. Identify their
goals, then work with them on a plan to
attain them and grow with the company.
Promote from within as often as possible
and provide equal opportunities. This sends
a clear message that you are committed to
developing future leaders based on merit,
and you want your employees to drive the
company’s success and share in it.
Learning should be another core focus.
Employees will feel valued and more invested
in the business if you offer paths for training
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and the acquisition of new skills, processes,
and technologies.
This doesn’t only mean attending formal
training courses and gaining qualifications;
encourage employees to learn by doing, on
each project and every task. Give them the
freedom to not get it right the first time,
and then share those learnings with the
wider team.
Your high achievers will end up being your
best workplace trainers.
4. Make it personal
We all have different motivations, so tailor
your staff retention strategies to individual
employees.
Find out what fires your skilled staff up.
Financial incentives might not be as high
on the list as you think. Instead, your top
performers may care more about being
challenged by their work, learning and
growing, or having more workplace flexibility.
Understanding the needs of your employees
and customising each person’s working
conditions and benefits package will
definitely take some work on management’s
part. But the time and effort will help your
people feel truly valued, boosting employee
satisfaction and, ultimately, loyalty.
5. Keep communication open
More than ever, employees want a company
culture of respect and transparency. They
want to know how the company is doing,
what it values, where it is going, and how
their efforts contribute to its success.
If your workplace has an open environment
where management shares information and
employees feel free to give feedback and
contribute ideas, you will foster a sense of
shared purpose, and you can expect it to be
easier to retain skilled staff.
Communication can be formal or informal,
so provide options. Give performance
feedback, hold regular meetings so people
can offer suggestions and ask questions, and
encourage individuals and teams to share
information.
Occasionally, it may help to bring in an
impartial third party for staff to talk to so you
can get a gauge of how they really feel.
Make sure everyone in the business is
committed to open communication. Invest in
training and development for management
to cultivate their interpersonal skills.
Listening to your employees and acting on
what they say will help them feel valued.
Best employment benefits and perks
An important part of retaining talented employees is offering attractive
benefits and perks as part of their employment package. As well as being
incentives to perform, benefits demonstrate to people that the company cares
about them and wants them to succeed.
Pay raises and performance bonuses are the
most traditional way to retain and attract
skilled people, but other tools such as flexible
work arrangements, increased leave options,
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travel subsidies, and a range of discounts
or free offers can go a long way to making
people’s working lives more meaningful
and enjoyable.
If you offer a mix of recognition, development,
and wellbeing programmes, employees can
choose the benefits that suit them best. But
be aware that many employees view perks
and benefits as nice-to-haves rather than
must-haves.
If people have reason to feel disinterested,
mistreated, or dispensable, it’s unlikely they
will want to perform well enough to merit
any extra rewards. Then either the business
will need to move them on, or they will do so
themselves. Others may soon follow.
Top 5 employee benefits and perks
1. Pay increases and performance bonuses
This is still is #1, despite the
economic conditions.
A pre-COVID study by workforce
management company, PERSOLKELLY
(https://www.persolkelly.co.nz/insights/),
found that salary increases and performance
bonuses were considered the most effective
benefits offered by large businesses for
attracting and retaining employees. This
has been backed up by the company’s
2021 Australia and NZ Workforce Insights
Report (https://www.persolkelly.co.nz/news/
careers-and-purpose-more-than-covid-19-is-
prompting-people-to-reconsider-their-lives/)
that found workers rated pay and financial
security as the top reason to consider
changing jobs.
Of course, not every company will be in a
financial position to offer a pay raise or bonus
to their best workers right now (and there’s
no legal requirement to give a pay increase,
unless you’re paying your employee less than
the minimum wage!). But the conversation
should still be on the table.
You might need to be creative and look at
things like incentive plans that pay in shares
in the company. This not only provides a
great chance for employees to share in the
company’s success, it also gives them a
lasting reason to help build it.
If you can’t afford raises or incentives, be
honest. People will usually understand if the
business has been doing it tough, and may
well be fine revisiting the discussion at some
later stage. But if you muck them around or
deny them a bonus on false pretences, don’t
be surprised if your employee’s performance
takes a dive and they start looking for new
opportunities.
2. Work-life balance
Prior to the emergence of COVID-19,
maintaining a balance between working life
and other personal activities was a priority
to most workers and the pandemic has only
reinforced this.
People have got used to working from
home and juggling work and personal
responsibilities. Remote work is now very
much a norm for many, and that change is
here to stay.
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Smart employers realise that every
employee’s idea of what work-life balance
means is different, and that certain measures
work better for some roles more than others,
so it pays to provide a range of options to
choose from.
It may be flexibility in working hours and
location, part-time contracts, or the ability for
workers to scale their hours up or down when
they become parents, get older, or want to
further their studies.
It does take some faith, flexibility, and
commitment as an employer. But offering
options that improve your employee’s work-
life balance shows you trust them and in
return you can expect increased productivity
and performance, higher job satisfaction, and
reduced absenteeism.
2.5. Employee wellbeing
Putting some extra effort into employee
wellbeing is a really important consideration
in 2021, as many people have been unsettled
by the changes caused by the COVID-19
pandemic (and having to adapt to them).
Everyone wants to know that their employer
takes their health & safety seriously, whether
they are working on site or remotely. People
may need extra support. Having an Employee
Assistance Program (EAP) that provides
free, confidential counselling and support
can really help employees deal with stressful
problems, whether they are work or personal
issues. EAP services are also good to have in
place if you’re considering making structural
changes to the business that will affect team
members.
Beyond taking all the necessary precautions
and not cutting corners with employee
wellbeing, be straight with your people about
the company’s situation, its plans and goals.
They will have a good sense of what state the
business is in anyway, and will understand
if you can’t afford some of the benefits you
previously could.
3. Professional development
In our modern working lives, people want
to develop their skills and career, and
employees increasingly expect the company
they work for to provide an environment that
encourages learning and progression.
For the most part, Australian businesses
are good at this, and recognise upskilling
benefits the company as well. If you work with
your team members on development plans,
you will provide a clear path for them to grow
with the company. Remember to offer this to
everyone in the company, not just managers
and star performers.
Offering various options works best, as it
will enable your employees to select the
things that inspire them. For some it may be
gaining formal qualifications. For others it
may be attending workshops or hearing from
inspirational speakers.
The changes brought about by COVID-19
mean there are an increasing number of
online training and certification programs
that are free of charge, so upskilling is more
attainable than ever.
4. Increased leave
Beyond the paid leave that all permanent
workers are legally entitled to, many
companies now give their staff more than
the minimum and also provide other leave
options.
Giving extra days of paid leave for staying
with the company for a predetermined period
improves employee performance as well as
retention. Offering longer periods of paid or
unpaid parental leave encourages parents to
return to the company. Giving people time off
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to recharge or pursue volunteer work shows
you support them, their values, and the wider
community.
It’s about demonstrating to your employees
that they matter. By showing them you are
willing to go above and beyond, they will be
much more likely to reciprocate.
5. Discounts and freebies
This is a broad category and could cover
anything from discounted health insurance,
travel, or gym memberships to providing free
food and espresso coffee.
Travel expenses – especially if your business
is in the city – can be a major cost for your
people, so providing lease vehicles (not just
cars), parking, or public transport subsidies
can be a big plus.
Many companies offer their own products
at little or no cost. It may not cost much to
the business, but it may mean a lot to your
workers. It will also give them first-hand
knowledge of the products or services the
company provides to its customers.
Other popular benefits to consider
> Health and wellness programmes, including
personal health checks, flu shots, and
nutrition and work-life balance seminars.
> Retirement and savings planning.
> Social perks, such as organised events and
outings, regular lunches, and Friday drinks.
Provide options
Your workplace doesn’t need to have slides
for getting between office levels, but you
should ensure the benefits and perks you
offer are of value to your people.
Understanding your workforce and providing
a menu of benefits that people can
customise will enable you to better enhance
their working lives.
The popularity of different benefits changes
over time too, so keep checking with
employees to see if you are able to offer what
they expect.
Of course, the prime consideration for most
businesses will be which benefits and perks
you can afford to offer. Transparency is key
because failing to deliver on promises will
leave employees feeling they have been
short-changed and, potentially, resentful.
Be clear and fair
Doing right by your team members is always
the right thing to do.
If you are proud of the way you treat your
people, let others know of the benefits of
working for your company. It will help attract
potential employees.
But remember: all the perks and benefits
in the world won’t count for much if your
workers don’t feel you value them, treat
them well, or they don’t have any direction in
the job.
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