Motivated staff stay with your firm – benefit from high levels of employee retention

Hiring quality staff is time consuming and expensive, so keeping the right people on board can help to deliver business success. While the right level of salary is important, making people feel valued and engaged with your firm will increase motivation and drive productivity.

It typically costs £2,000 to hire a senior manager and about £1,500 to recruit other employees according to the Chartered Institute of Personnel and Development (CIPD). Despite the cost, the CIPD’ s resourcing and talent planning report for 2024 shows that 65% of businesses are experiencing greater difficulty in retaining well-qualified staff.

We know that having quality staff is one the most valuable and expensive assets of any business and high staff turnover can significantly increase the cost of recruitment. It is also disruptive as new staff need to be on-boarded and trained before they can contribute fully.

Retaining key employees is essential to business success, so it’s no surprise that more and more businesses are seeking ways to motivate and hold onto key staff.

Paying the right salary is clearly an important part of employee retention and many firms have recently upped their pay and benefits, but it’s not the only factor.

People appreciate being recognised for their work and non-cash benefits, such as healthcare, gym membership and other benefits are highly valued. Perks such as share ownership plans can also make people more engaged in the success and growth of the business.

Achieving a good work-life balance has become more crucial, especially since the pandemic. Many people value the ability to split their work time between home and the office, along with having flexible working hours. This flexibility can make it easier for many to manage work alongside childcare responsibilities.

It’s worth bearing in mind that most people want to work for businesses which share their values. Creating a positive work culture which promotes diversity and inclusion and has clear CSR values is an important factor for many when they are deciding whether to join and stay with an organisation.

Don’t underestimate the importance of onboarding people carefully on day one. It will give them a clear idea of the type of business they are joining, how they will fit in with their new colleagues and understand how they will contribute to the business. Excellent onboarding can leave a lasting positive impression, while a chaotic first day can leave an employee doubting their decision to join.

Giving people realistic career progression and professional development opportunities means they can see a future with your firm. You can use performance reviews as an opportunity to learn what staff want from their job, but critically act on the findings, so staff value and engage with the review process.

It's essential to ensure line managers are well trained and know how to manage and motivate their people, too often staff are put into line management roles with little support. Poorly trained and motivated managers will lead to low morale and higher turnover among their teams.

Foster employee engagement by giving staff a voice and listening to and responding to their opinions. Provide clear communications and regular feedback. Employee questionnaires and staff forums can be helpful in gauging the mood among employees. Remember, we all value having control over our work, so give people clear parameters where they have the autonomy to make their own decisions.

Often employees find it useful to discuss their job and opportunities with someone who isn’t their line manager, so providing mentorship from more senior colleagues who can provide support and guidance will be valued.

Whatever steps you take, people will leave your business for a multitude of reasons, from personal to professional. Exit surveys can be a useful tool to find out why - and give you the opportunity to make changes if it would help to improve retention.

High levels of employee retention can help your business succeed and grow.

If you would like to discuss this topic further and understand the implications on your business, please don’t hesitate to contact the team.