Do you believe in saving money to keep your business afloat and successful? Do you also value your team and employ a strategy which ensures there are high levels of happiness at work?
During my work as a coach since 2003, I have encountered companies that spend a lot of time and money on recruitment as their employees come and go. This is all part of a natural progression for a business however there may be times when your staff turnover is higher than you would like it to be.
If you have some great people in your company, how can you prevent them from leaving after a year or two, having invested in them and trained them up so that they are a well performing member of staff?
It is important to look at the bigger picture and ascertain whether there is anything that you may have overlooked, from the employee’s perspective.
- Did they have every reason to know that you valued them and appreciated their efforts and commitment?
- Did you take on board their ideas and comments to improve any systems that they were a part of?
- Did you allow flexible working hours if appropriate or requested?
In the hurly burly of business, shortcuts can be frequent and people can be taken for granted. This is natural at times but it is not good for staff retention.
As we all know, people have feelings and like to know that they are important, that they are valued and that their work has relevance and meaning. If this isn’t happening, they may well be tempted to look elsewhere. Money is certainly another incentive for moving on to a new company however this is not the only factor that matters these days.
…is widely acknowledged as being something that most people are looking for, but sadly, too often, it isn’t found.
So when you consider the costs of recruiting to replace a member of staff in comparison to the costs of looking after your staff in the first place, to prevent departure, you may be surprised at the difference:
Costs of recruiting:
- Agency fees = £HIGH
- Stress and strain on existing employees whilst staff member not happy at work. (Therefore all concerned are likely to be distracted and less productive) = £QUITE CONSIDERABLE
- Stress and strain on existing employees whilst staff member absent. (Before arrival of their replacement) potentially leading to further employees seeking alternative employment as well, as they will feel put upon by the extra workload = £PRICELESS
- Stress and strain on existing employees whilst new staff member being trained = £NOT IDEAL
- Cost of new recruit being much less productive during his or her initial few weeks in the new position = £REASONABLY HIGH
Compare these with the costs of working to keep your staff happy:
- Regular (daily if appropriate) ‘Thank You’= £FREE
- Provision of cakes / fruit or other similar treats for no reason occasionally = £MINIMAL
- Regular time to ask if they are having any difficulties or if there is anything they need to make their work easier / more productive= £VERY WELL SPENT
- The option of coaching for those who would like it, this is a ‘win win’ for both parties as…
For the employee: he or she will feel valued, supported and happier, as a consequence of being offered coaching, therefore enhancing the ‘happiness at work’ culture
For the employer (1): productivity will be increased because of the above and also because the coaching will incorporate strategies for increased effectiveness, personal development and reduction of stress
For the employer (2): stability of customer loyalty for the business (people buy from people they like). If your customers are re-visiting to see a particular staff member, they
may take their business away from you and follow the staff member to their new company
…Coaching therefore will ensure that staff retention increases and recruitment costs decrease = £VERY WORTHWHILE INVESTMENT
Taking this all into account, (quite literally!) which route makes the most sense? I have known business owners to think it is enough to pay their staff and why do any more? The reasons above are why I believe a competitive salary is NOT enough.
If you would like to provide coaching to help keep YOUR team happy in the long term and committed to YOUR company, give me a call on 01295 272263 or contact me. Alternatively, remember and act on the other points raised and see how things improve in the short term.