The era of the Great Resignation continues. As the latest JOLTS reported an all time high in the nations quits rate. Simply put – talented employees are not afraid to quit their jobs for more money (which is being offered) or for a better opportunity.
Photo source: douglasjacksonrecruitment.files.wordpress.com
Change the Mindset
It is generally accepted that it costs more money to win new business than to retain current customers. But not so when it comes to employee retention. It seems that most of the business community is pre-programmed to focus on keeping talent costs down but not the cost of replacing the talent. The old-school way of thinking is that everybody is replaceable, which may be true but at what cost.
Trying to replace current talent today is very difficult as it is very scarce. Think of all the hours and money spent on:
· Advertising
· Recruiting
· Interviewing (assuming they show)
Most likely, a higher starting salary
And even if the candidate accepts the offer, by the time the start date comes along they may have found other employment that pays more. All this time spent comes at a huge cost. Not just hard cost, opportunity costs because the focus isn’t on the core competencies of the business.
The Bottom Line: It would be cheaper to retain existing talent, rather than replacing it.
Try Listening
Small business is especially susceptible to this. Many of my staffing clients can’t realize their full earning potential because they don’t have enough internal recruiters to find scarce qualified candidates to fill open job req’s. Losing quality internal talent will only worsen the situation.
Most small businesses do not have the deep pockets of larger firms. So, when a talented employee approaches you with concerns …. before offering more money, try listening to them. This is simple, but too many leaders don’t take the time to do so. Ask them what their concerns are. What makes them happy at work? What makes them miserable?
Then tangibly address those concerns. Younger workers in particular want:
· work/life balance
· upward career path
· ability to learn new skills
· to be respected
· up-to-date technology that makes their job as productive as possible
Once those concerns are addressed, then negotiate a new salary / benefits package. Most of the time, if the employee feels they are truly part of the company, they will stay and take a “hometown discount” (meaning less than what they are being offered by another employer).
The Payoff
The company will reap the rewards by retaining quality talent like:
· no productivity loss of having to train and retrain a transient workforce
· higher employee morale - the team stays together and new talent is not being hired at higher wages than the current staff
· leadership stays focused on sales, automation and customer retention
· sales growth continues and/or service level does not suffer
For staffers that are looking to streamline internal non-revenue generating functions like payroll and billing which would reduce the need for hard-to-find internal staff, please contact me at 312.933.7712. I can help.
Comments