staff retention

The war for employee talent is real! Known by various phrases like the “Great Resignation”, the “Great Transition”, and the “Great Realignment”, the current sentiment among employees is that it is time for change. Workers are leaving their jobs and making lifestyle and career changes, and others are making “tree” or “sea” changes and redesigning their lives.

According to research from Microsoft, 40 per cent of the post-pandemic global workforce have resigned or are considering resigning. Some proof of this can be seen in job advertisements. In October last year, SEEK recorded the highest number of job ads in 23 years. That was 63 per cent higher than the previous year and 44 per cent higher than pre-pandemic levels in October 2019.

Why is this happening?

In part, the labour supply squeeze comes from limited worker mobility due to border closures and the halted immigration of skilled and technical workers from overseas into the country. It may also be due to increased government support during the pandemic or because people have been able to save more while staying home during lockdowns. Many skilled workers can now name their price as the employment market heats up.

Lockdowns have also allowed people to examine their priorities, values and lifestyle choices. People have had the chance to think about the emphasis on work and what’s important to them and tap into an underlying desire to have a better lifestyle.

With the rise of hybrid and remote work models, the flexibility of working from home has also created resistance to pre-COVID-19 work arrangements. For some, paying exorbitant parking fees and travelling to and from work is not an attractive option when there are alternatives available.

Hence, local employee resistance and overseas employee shortages are forecast to be one of the highest business risks across all industries in 2022.

What does this mean for employers? 

Businesses, irrespective of size, are now having to battle for available resources in the competitive employee landscape. For employers, it is time to rethink their decisions around the what, why, where and when of work to ensure continuous improvement and business growth.

While salary does play a huge role in attracting and retaining talent, it’s not the only factor. In the current business climate, where budgets may be an issue, organisations need to look at other tactics and strategies. So whether you are a leader, recruitment specialist or own your own business, here are some ways you can attract and hire new talent and some staff retention strategies that will help you retain that talent.

Flexible working policies

In many cases, COVID-19 has dramatically changed the way we work. One of the most significant changes has been the adaption of flexible working policies, particularly given the need for employees to work from home. Many have embraced the change and prefer it! Regarding staff retention strategies, if your business has the capability and capacity to offer this arrangement for staff moving forward, it is worth considering.

To set your employees and your business up for success, take the time to define work processes and agree on your staff’sKey Performance Indicators (KPIs). As with autonomy, there should also be accountability. Whether it’s a 100 per cent work-from-home scenario or a combination of some days in the office and some out, with the right framework, it can work. Plus, if your employees are happy and fulfilled, it will often equate to enhanced productivity.

Mental health support

Another critical staff retention strategy is to have sufficient mental health support in place. This is crucial as, according to the Australian Bureau of Statistics, 15 per cent of Australians experienced high or very high levels of psychological distress over the period 2020 to 2021. Not surprisingly, there has also been evidence of heightened psychological stress during the pandemic.

As a manager or business owner, you are responsible for assisting workers with mental illness by providing changes that will support their duties more effectively in the workplace. These are known as “reasonable adjustments”. A few ways you can instigate these include:

• Implementing effective communication strategies and regularly checking in on employees to find out how they are going at work and in general.
• Identifying and implementing workplace adjustments and support to meet individual workers’
• Implementing effective, long-term, broader organisational strategies to create a flexible and inclusive workplace.
• Offering flexible working options, including variable start and finish times, working from home, working part-time and changing or sharing responsibilities or tasks.
• Incorporating official mental health days into your organisation’s leave structure to support them wherever possible.

Continuous learning

To equip employees with the necessary skills for the future of work, developing a culture of continuous learning is essential. However, aligning training to organisational and staff retention strategies requires prioritisation and investment in diverse learning opportunities and preferences. Things to consider include developing micro-learning tools and encouraging social and informal learning.

Technology can also be leveraged to facilitate agile and innovative learning and is critical for remote workers. Digital tools like virtual reality are particularly suited to harder-to-teach skills and create powerful learning experiences. And shifting the focus on development from individuals to team-based training can help equip them for continued success and better performance.

Rewards and memberships

Staff retention strategies can also revolve around employee benefits, rewards and recognition programs that you put in place. They can include:

• Group insurance — Personal insurance plans that can include Salary Continuance cover.
• Health insurance — Fully paid or subsidised plans.
• Company car — This can also include fuel and car allowances.
• Childcare subsidies — In childcare placements or daycare facilities.
• Health and fitness — Providing “gym on-site facilities” or access to a gym with lower corporate rates.
• Catering — For example, an on-site cafe, fresh fruit delivery services, a juice and smoothie bar, or menu selections from a local supplier.
• “Break out” activities could include on-site massages and facilities for activities like table tennis or pool.
• Vaccinations — Free or subsidised flu and COVID-19 shots.
• On-site bathrooms — To encourage staff to walk, run or ride to work.
• Technology — Free or discounted mobile phones, laptops or tablets.
• Employee recognition programs — Offering discounted goods and services including petrol, travel, leisure activities, shopping or movie tickets.