Staff retention

People are the most valuable of all resources and one of the keys to success in international markets is the ability to recruit and keep skilled and motivated staff who have the flair and the imagination to include a global dimension in their career planning.

The need to identify and retain key personnel is high on management’s agenda as businesses seek to control costs. Just a few years ago, stock options was seen not only as an effective way of locking in key staff but also of ensuring that they focused their efforts of promoting shareholder value.

However, times have changed and share options no longer hold the attractions they once did. This means that management has had to go back to basics when maximising the value that their businesses derive from employment costs whilst keeping a lid on the disruption and waste that accompanies high staff turnover.

The simplest approach assumes that there is a direct relationship between higher pay and happier, motivated staff but this does not always hold true. Whilst many companies try to ascertain why staff leave, too few seek to establish why the rest stay. They also fail to sufficiently appreciate that over a working life everyone’s priorities change.

Nevertheless, certain basic issues affect everyone. Simple matters such as recognising good work, giving due praise and thanks are all far more likely to leave an employee with a better sense of satisfaction than a slightly larger monthly payment appearing on their bank statement. It’s often the little things that can mean the most.

For most people, it is easier to get out of bed each morning if they are faced with an exciting, challenging and enjoyable day than because it pays the bills. There will always be those for whom the dollar is king, of course, but often they also find challenge and reward in the way they earn their pay.

The concept of ‘Total Reward’ builds on the human element and allows employers to create an office environment that employees value and cannot necessarily find in another job. It keeps costs down (particularly in recruitment) and aligns employees’ work and reward with the goals of the company. The components of Total Reward are traditional remuneration plus the concept of ‘work experience’. This can be made up of recognition, a sensible work/life balance, corporate culture, employee development and the working environment (including job design and physical workspace).

Total Reward is still an emerging concept. During periods of economic uncertainty, it has the potential to maximise employee retention and motivation whilst also having the benefit of controlling the bottom line. It is a crucial concept therefore for even the most financially astute of managers.

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