Do you have difficulties retaining your staff or you simply want to make your business more profitable? Being an employer of choice is the answer to both of these challenges. I doubt you are a bad employer on purpose but do you know what your employees really want? More importantly, are you aware of the considerable return on investment for satisfying their wants? In fact, a McKinsey Consulting study reveals that companies with an exceptional approach to talent management can expect returns 22% higher than an average firm. So it literally pays to treat your staff well.
Another economical argument for investing in your employer image is that 1 in 3 workers in the UK plan to change jobs in 2015 and it costs you an average of £30,614 to replace an employee. Of course only you can work out the figures specific to your business.
Let’s get some inspiration from the big players in this top employer game. Glassdoor lists the top 25 companies to work for every year and ranks every company based on employee reviews. The highly successful companies in this top are living proof that being a good employer is a profitable idea.
Now, let’s see how this concept applies to your business. We often advocate thinking of your staff as customers. I know there’s a shift in thinking there but there is a value exchange between yourself and your staff. Their wants and needs will change according to your environment and even their various departments. A sales team at an investment bank is likely to be motivated by different things to the administrative staff at an environmental charity, for instance.
The list below ranks what employees want based on a new study by the Institute of Leadership and Management. It is now up to you to rejig these priorities according to your company’s particularities:
1. Promotions – 59%
One of the main reasons people give for leaving a company is the lack of opportunity for progression within their current organisation. Some see constantly switching companies as the only way to climb the corporate ladder in the modern world.
It's the way of the world that you cannot promote everybody, but make sure that hard work is rewarded and your brightest talents climb the ladder.
Ensure that every vacancy is advertised internally, groom the best staff for more important roles and promote your brightest and best, even create new roles if there is no obvious place to go. Offer career progression and the chance to take on responsibility and the staff will respond.
2. Better pay – 56%
Of course it is important to pay staff well if you wish to retain them. An employer of choice generally pays at or above the market rate, but rather than attract staff with a high wage that is frozen for long periods it can be better to start at a lower rate and increase wages regularly in small increments, or to introduce a bonus scheme in line with performance.
3. A more interesting job – 50%
While some people simply work to live, those are exactly the kind of employees you're looking to weed out if you're chasing the elusive employer of choice status.
Expert Recruiter Tip: You want the people that derive pleasure from their work, that take huge personal satisfaction from their jobs. To achieve that you have to provide stimulating and challenging work that inspires them.
The actual industry is irrelevant, it's the approach that is important. The pursuit of excellence in everything you do, from everyone, will foster a sense of pride and create a healthy corporate culture.
4. Training – 27%
Invest in your staff and they will repay your faith and money many times over. Provide a structured framework of training and invest in a clear path for each and every staff member that plays to their strengths and also addresses their weaknesses. Show them their future, mapped out and leading towards logical progression, and you will likely be amazed by the increase in staff retention rates.
Expert Recruiter Tip: General training is better than nothing, but a tailored programme will show your employees a true commitment to their improvement, which is one of the biggest factors in becoming an employer of choice.
These are the top ways that you can mark yourself out as an employer of choice, which will help you attract the best staff and take your company to the next level. In short it's about a change in attitude, from what you have to do for your employees to what you can do, economically, to make their life better and to create the ultimate employee experience. Do this and you'll find that your current staff's output improves, you can recruit a better calibre of staff and your investment pays off in the long run.
