The employee retention strategies used by Australian CEOs
32% of CEOs now believe that talent is harder to retain. Businesses are now competing for the top talent, both acquiring it and retaining it. CEOs should focus not only on obtaining staff but also retaining them. Not only do talented employees add value to the organisation, but the costs of rehiring and retraining employees can be considerable. Replacing an employee costs, on average, six months of salary for the position in question. Investing in employee retention can be an excellent way to improve profitability.
To that end, CEOs are attempting to make their businesses more attractive to their employees. Their strategies include:
- Improving training
Many employees find themselves leaving otherwise fulfilling positions because they feel that they don't have many opportunities for growth. Improved training along with a transparent process for promotions can give an employee goals to consider. 33% of CEOs believe that improving training will lead them to the right path towards drawing the right talent.
- Adding benefits
Benefits can be added as an employee gains seniority to reward them for their loyalty. Employees with the company for a long time could be rewarded with additional vacation days, health benefits, or flexible working hours. 32% of CEOs are adding benefits, compared to 17% who are increasing wages.
- Increasing wages
A regular increase in wages is often necessary to keep the best employees, especially in industries where they may be considered by competitors or where salaries are advancing quite quickly. Salaries aren't the only way to retain employees, but a lack of salary increase can make employees feel undervalued even if they otherwise enjoy their work.
- Company culture
Employees often find it easier to work with a business if they identify with its culture. Businesses should establish their company culture quickly and make it a point to invest in employees that are a good fit.
In addition to salaries and benefits, there are many employees who simply want to be acknowledged for their contributions to the business and their hard work. Setting up employee reward systems and regularly acknowledging employee input will show employees that they are appreciated by the business and that their work is not going unnoticed.
A business that is able to retain its employees will have lower churn and a greater sense of stability. Not only will it reduce its hiring and training expenses, but it can build upon employee knowledge to develop more innovative and well-optimised business processes.