managing tips

Less Turnover, More Talent

During the recruitment process we are all careful to hire only the best workers, so once we hire them, we hope to keep them long-term. With this in mind, managers must entice their employees to by giving them good reasons to stay. Today, it is known that managers are finding it much harder to retain talent. Employees lack the compassion to hold tenure with their companies, and instead seek a job that best suits their lifestyle or future aspirations. As a manager, an easy solution is as simple as trust building and having conversations around career goals. This is to ensure you are able to assist their career climb. If you don’t know how your employees wish to grow professionally, it’s very difficult to nurture and support their goals, and this is where retention can be an issue.

Effective employee retention is crucial for the long-term health and success of any business. It is believed some of the benefits for maintaining your best employees include:

  • Constant customer satisfaction when dealing with the same person each time;
  • Fulfilled co-workers;
  • Effective succession planning;
  • Heightened organisational knowledge and learning; and
  • Minimal time spent hiring and training new staff.

On the other side, failing to retain key employees creates greater turnover of talent. The impacts for not implementing retention strategies include:

  • Increased training time and investment;
  • Lost knowledge and experience;
  • The loss of loyal clients and customers;
  • Insecurity among workers; and

Managers must implement staff retention strategies to ensure talent isn’t lost and even more so, lost to your competitors. Sometimes it’s the most effective retention initiatives that involve minimal cost, which means they are easy to apply and at no harm to your business. Here are some quick tips and tricks managers can implement to retain their talent and minimise their turnover:

  1. Responsibility: Show your employees trust by giving them new responsibilities that allow them to grow.
  2. Respect: Employees appreciate when they are respected and appreciated, which creates an enduring work culture with positive memories they will never forget.
  3. Recognition and Reward: Having a rewards program should go beyond monetary compensation, and can simply be a public thank you to acknowledge hard work and efforts.  
  4. Flexibility: Flexible work arrangements allow staff to effectively maintain and balance their work and home lives.
  5. Relaxation: Be generous with time off and ensure sufficient rest time during busy periods.
     

About the Author – Rachel Stefanovski 

Rachel Stefanovski is the General Manager of PKL Recruitment, leading the NSW and VIC state offices. Rachel takes great satisfaction in setting a strong and motivated team culture through engaging with intelligent and driven recruitment consultants. Contact Rachel directly via LinkedIn or rachel.stefanovski@pkl.com.au.

Top 6 Tips For Employers When Asked For A Pay Increase

Performance reviews are a method to evaluate your most useful team members that help drive business growth and determine what changes can be implemented to increase value. It is beneficial to understand that for employees, performance reviews are a point of progression and as such, you may be approached with requests to increase an employee’s salary.

Staff may be eager to discuss and highlight their contribution, which may merit a pay increase. On the contrary, a staff member may perceive they are contributing significantly however their performance evaluation says otherwise, you may be placed in a difficult position to decline their request. Nevertheless, both scenarios of pay review requests should to be handled effectively to achieve the best outcome. 

We’ve devised 6 useful tips on how to facilitate a performance review with a request for a pay increase. 

1. Acknowledge their courage for asking

This should be the first response to any pay increase request. It is important and respectful to recognise the preparation that went into asking what can be considered a daunting question. The employee is providing you with the chance to retain them before they seek a job elsewhere.

2. Don't reply immediately

Naturally, you will have a preconceived idea that you may or may not be willing to grant a pay increase for a particular employee. However, there may be others involved in the decision process. In that case, avoid saying, “I have to ask my boss” or “Its not up to me” as doing so may undermine your authority. Instead, you can say “I’ll get back to you next week” or “I’ll have an answer for you in a week” which lets the employee feel that they won’t be left hanging for an answer and gives you time to talk to those involved in the decision. Replying with “no” can make the employer feel they are undervalued and not worth considering which could potentially result in high staff turnover. 

3. Ask for more information

A simple “tell me more” indicates you are listening to your employee and provides you with more information to assist in making a decision if the request is plausible. 

4. Consider the employee's contribution and progress

The performance review will reveal the additional value the employee has contributed to the organisation. Since the employee commenced working for the company, they could have dramatically progressed in their role and accepted more responsibility but their salary may not reflect their progress and achievements. 

5. Research market rates

A leveraged business position is not the only competitive forefront. Having competitive remuneration packages can assist in employee retention. Is the company offering competitive salaries or incentives? Conduct research into what your competitors are offering for similar roles. You and the employee may also discover that their skills are in high demand.

6. Devise a goal plan

A goal plan can be implemented to help an employee reach objectives and progress in the business. For example, you may set objectives and targets the employee needs to achieve over a specified time frame before considering a pay increase. Setting goals provides employees with motivation to grow, develop and achieve personal and business success. Ensure the goals are time specific and are clearly communicated.

Requests for pay increases are a natural part of management. Implementing these tips can assist in achieving the best possible outcome for the business and the employee.

PKL Recruitment specialises in business support and call centre recruitment services to grow your organisation through high performing talent. Visit www.pkl.com.au for more information. 

About the Author – Phoebe Lane
Phoebe Lane is the Founder and Managing Director of PKL Recruitment. Phoebe founded PKL Recruitment in 1995 with a vision of creating meaningful differences to the lives of candidates and clients. PKL Recruitment is focused on producing high quality placements that benefit both the candidate and the client. Contact Phoebe today via LinkedIn or phoebe@pkl.com.au.