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Talent Retention

Are employees fixed assets or free agents?

Sun, 27 Jun 2010 17:51

Retention of talent, a popular phrase, is not formally planned for and implemented as much as is needed in South Africa, given the true cost of staff turnover. This is the opinion of Marcia Dippenaar, business development manager at Communicate Personnel who adds that ‘talent’ should be taken to mean the efforts of all staff, not just the ‘high flyers’, for the international cost estimate of replacing staff varies between 90 percent to 2000 percent of annual salary, so no one is easily replaced.

“It is not just the obvious cost to advertise and rehire someone, either independently or through a personnel consultancy, that needs to be accounted for, there are hidden costs that can directly impact the bottom line,” she explains. The first step towards staff retention is to acknowledge the cost of replacement and then formally put a programme in place.

Costs of replacement

“The reality is that once someone has resigned, the chances of 100% dedication diminish, which puts pressure on co-workers and management to take up any slack. The replacement, however enthusiastic, requires time for training, culture fit and assimilation. Again, international experience puts this at sometimes as long as 20 weeks before 100% percent productivity is regained.

“However of more critical importance is the loss of specialist knowledge or skills, particularly if the departing employee is from the ‘baby boomer’ generation. Newer generations regard work as a series of experiences for them, rather than a lifelong commitment – the experts predict the typical young person will have had nine jobs by the time he or she is 32 years of age, which adds value to a portfolio but not to a company’s bottom line.”

Retention begins with definition

Retention begins with a definition of the job, its key performance indicators (KPI) and its intrinsic and extrinsic benefits, rather than trying to persuade dissatisfied staff to stay via a quick fix.

“These can include interpersonal relationships between managers and/or co-workers; self-fulfilment; perceived lack of development and/or career opportunities; flexibility in life and work needs; and trust and belief in a company’s ethos.

“We advise clients to analyse each position from the perspective of an employee – are career paths and succession planning clearly delineated?

• Is there opportunity for lifelong learning and not just in hard skills?
• Are managers and supervisors trained in people and management skills, not just technical issues?
• Are there recognition and rewards systems as inspirational goals? Does the company have a proud ethos, a vision and mission that employees can commit to?
• Are there flexible work and time options that accommodate staff with personal needs?”

Retention options

• Undertake an audit to define KPI, career paths and training opportunities linked to each position
• Incorporate succession planning in all positions
• Identify soft skills training that would enhance personal and company objectives and incorporate them into formal training programmes
• Update and enhance management skills annually to take advantage of new psychological and sociological findings
• Institute awards, recognitions and non-monetary gift programmes – employees often remark how company recognition before their peers encourages loyalty and productivity
• Consider time flexibility – the escalating transport crises in South Africa often mean that staff are trapped in hours of travelling. Stagger core times and jobs, consider two or three part time employees for one role – this is particularly valuable where employees with very poor health conditions struggle to complete their time requirements due to hospital visits etc
• Introduce coaching and mentoring programmes from the lowest task to the CEO
• Establish meaningful CSI programmes that involve staff – hands-on painting of a children’s’ home really underlines the company’s social commitment so much more than a cheque
• Communicate regularly – staff often begin searching for jobs based on rumour and speculation – ensure that the bad news and the good news are equally shared
• Add challenges to tasks – many people need some stimulation in order to perform optimally – boredom often leads to mistakes
• Initiate wellness programmes and rewards for compliance – healthy staff are more likely to be satisfied with working conditions and absenteeism should fall

Benefits of retention strategies

“Employee retention not only has direct monetary benefits but also intangible ones,” she adds. “High staff turnovers lead to anxiety, conjecture and poor productivity but increased employee satisfaction, tenure and productivity lead to better service and quality and therefore more satisfied customers.

“The final retention strategy is that of the exit interview with departing staff. Here we recommend that companies use an intermediary to obtain what could be valuable information. In an impartial environment, the chances are good that the departing employee will be forthcoming and honest about his or her reasons for leaving and this feedback can be used to create better retention strategies,” concludes Dippenaar.

Marcia Dippenaar, Business Development Manager, Communicate Personnel For further information, please visit: http://www.communicate.co.za/

Supplied on behalf of Communicate Personnel: Louise Churches Glass Slipper Communications Cell: 083 703 3750 E-mail: louise@glass-slipper.co.za Angela Groom Glass Slipper Communications Cell: 083 261 1370 E-mail: Related Articles