Employee retention in tight labour Markets
Friday 20th May 2011 - By Leo Alarcon Share
Recruiting the best people for the job is a lot harder than it first seems, especially in tight labour markets where there is a shortage of skilled labour and there will always be a competitor willing to offer a more attractive remuneration package to the right candidate. This is just recruiting!, employee and talent retention is the ongoing battle of keeping people motivated, challenged but satisfied in their current roles as well as providing career prospects within the business at the same time feeling rewarded. As a business or human resources manager this is a constant worry and a crucial piece in being able to build a strong knowledge base and achieve a competitive advantage and if mastered can even be a competitive barrier against competitors.
So how de we overcome the multiple hurdles in recruiting and retaining the best employees? The answer lies in first understanding and learning what motivates and drives current employees as well as their satisfaction and source of such working for the organization. Understanding what the organization does well in the first place is important because these items can be built on as a foundation to create an environment that fosters work satisfaction. As a manager understanding that people will one way or the other expect a certain level of reward for their efforts is an important part of structuring a remuneration and recognition system which rewards employees for going that extra mile and adding value to customers and shareholders. The way a business recognizes and rewards its people, not only financially, is crucial to employee retention rates and satisfaction. When devising a retention and human resource strategy it is important to consider an attractive reward system which encompasses the following things:
- Career paths for employees including training and up skilling opportunities
- Working environment (Physical environment and workplace/company culture)
- Market competitive base remuneration
-Performance based remuneration system
-Employee recognition programs for outstanding achievements towards company objectives
These seem like common sense components of any well thought HR plan but it's amazing how many companies and organizations fail to fully implement and support these and just pay lip service to a HR policies stored on the company's intranet or company policy handbook. The management of a business' human resources and company culture is integral to the financial success of the company just like any other facet of the business. True leadership in this sense is being able to recognize the importance of human capital in being able to achieve a competitive advantage and superior returns within your industry.