Putting good Employee Retention Strategies in place is absolutely paramount in any business that intends to grow and develop in today’s market places. Apart from the obvious costs incurred by continuously having to replace and retrain staff, there is the disruption to company continuity, and of course the general harmony within the office.
People, in general, do not like change and a continuous change in the personnel of one's workforce unsettles everyone. Worryingly less than 20% of organizations appear to recognize the costs involved in replacing highly trained individuals. It is becoming apparent that millennials have a higher turnover rate than their predecessors. The days of a job for life are long gone and with that uncertainty comes less company loyalty. It is, therefore, necessary to improve the relationships between the company and staff.
Facts and Figures
The Society for Human Resource Management estimates that it costs between six and nine months’ salary to recruit and train good quality replacements. So if you are replacing a valid member of your staff earning $40,000 a year, you are looking at somewhere between $20,000 and $30,000 in total expenses. Other studies have placed the costs even higher. If you have to recruit middle management the costs soar dramatically. The website People Keep put the figure for senior management at up to 213 percent of their annual salary. So to recruit and train a highly educated executive CEO the cost for someone on a $100k salary can be as much as $213,000. For this reason alone having good employee retention strategies in place is absolutely imperative.
Good Employee Retention Strategies are Crucial
Reading the facts and figures above, it is not difficult to see the value in employing good employee retention strategies to improve your business and keep down costs on recruitment training. Today’s market places have become employee driven. It is definitely a candidate’s market when it comes to job searching. Top quality people are automatically drawn towards businesses that have high retention numbers. Nobody wants to work for companies that have huge staff turnover rates.
So let’s assume you have identified that good employee retention strategies are necessary for your business. Where do you start? Most people nowadays are likely to have more than 10 jobs in their career. At any one time 60% of all people in employment are looking for a new challenge. Your challenge is to reduce these numbers.
Effective Employee Retention Practices
Start by encouraging a healthy work balance for your entire team. It is not the amount of time spent at a desk that is important, but the quality of the work done whilst they are there. Working long hours without enough down-time is of no use to anyone. Encourage time off, extracurricular activities with work colleagues and ensure that breaks are always taken.
Get involved in the local community; there are so many in need, especially in Southeast Asia. Your intervention can help people immensely and give your workers a sense of belonging. There is excellent work being done out here in Vietnam. For example, here at RGF, we are happy to be involved with the Christina Noble Trust, you can read about our involvement here. This is a fine example of maintaining excelling employee retention strategies. People love to feel that they are giving back to the society in which they live. Such initiatives held to build a strong team ethic whilst at the same time doing real good where it is needed.
Identify potential mentors already within your organisation and pair them with young up-and-coming talented individuals. Mentoring programmes are a very good way of demonstrating your belief in staff members and have been proven to be effective employee retention strategies. Last but not least comes the subject of employee compensation. It is pointless getting everything else right then finding out that you are offering less than your competitors. It is imperative in today’s market that you not only offer realistic salaries but also decent bonuses, healthy paid time off, and excellent health benefits, and retirement plans.
Here at RGF we value both our clients who are looking for quality employees and those searching for the right opening at the right company. We have experts in many different fields of employment and the time to spend making sure every match is a good match.
If you wish to register a vacancy with us, follow this link and one of our experts will get back to you as a matter of urgency. If you are thinking of relocating to Vietnam or are already here and looking to improve your employment conditions, by all means contact us or browse the vacancies that we are advertising here.
About the Author
Following a highly successful 25-year career as a singer/songwriter and musician, Keith pulled out of the rat race and moved to Southeast Asia in 2008. First living in Thailand, he moved to Cambodia and then relocated to Ho Chi Minh City in early 2013.
Keith has had work published in magazines and websites in the UK, Europe, USA, Australia, and Asia. He has written for the BBC and has appeared on TV and radio in many different countries. His great loves are music and travel, but he writes on a whole range of subjects.