There is no easy answer to improving staff retention rates in many professions, with both of the two most popular choices made by businesses, being a long way from being perfect. Staff retention ultimately boils down to how the workers are treated by management and there are some very different approaches.
The two main choices
The traditional and perhaps old-fashioned approach, is the strict disciplinary style of management or ‘big stick’ method. This approach may well make staff compliant in the short-term but will inevitably make them increasingly resentful. The result invariably results in a regular turnover of staff, on average, every eighteen months.
The other main alternative methodology in staff relations and retention, is the ‘cuddly-feely’ tactic. This manifests itself with casual dress codes, first names only being used and regular company communal get-togethers, usually on Friday afternoons and accompanied by vast quantities of yummy snacks, especially pizza.
Whilst most individuals wouldn’t turn down the offer of a no-strings attached free lunch; it does mean a workplace with very little structure. Unfortunately, this rather fluffy approach to staff relations, ultimately results in staff moving on within two years, to a more organised workplace.
The hybrid approach
There are a number of alternative approaches to staff retention, but they all involve some kind of hybrid methodology based loosely on the two main choices. You cannot just allow staff to effectively work without supervision or accountability for the decisions they make, so some form of disciplinary measures need to be in place.
On the other hand, a workplace with little or rather loose discipline, will eventually descend into chaos. The trick is to combine the two, which is far from easy to get right. Human nature being what it is, staff need some structure at the workplace to operate efficiently and most important, effectively. This light-touch disciplinary approach should be combined with ensuring staff feel individually valued.
Training and staff evaluation
All employee retention strategies must be targeted at reducing staff turnover, which is critical to remaining competitive in today’s labour market. Part of the strategy must be ongoing training, especially with the many skills shortages in a lot of professions. regular ‘top-up’ training sessions should be organised but with the vital extra element of ongoing staff evaluation. This is particularly important and the feedback should be both ways, which means that the staff member will feel individually valued, with their supervisor able to manage with a light touch.
Accurise, a large accountancy practice, has an astounding employee retention rate of 96%, driven by key initiatives such as a four-day working week. Their MD speaking recently said; “Most large firms have incredibly tough targets for the people who work there, junior staff in particular, that’s a lot of pressure”. He went on to say that if every hour the staff member was at work had to be billable hours, then you don’t have a lot of time for regular training and evaluation exercises.
It has to be appreciated, that recruitment costs, which will inevitably involve a certain amount of training, are high for everyone, which is a key reason why it’s important to keep staff turnover to a minimum. If your staff feel that where they toil away each day, is a nice place to work they are much more likely to stay.
It is also important for employers, where possible, to be flexible with working arrangements. This could involve hybrid working or working longer hours for four days of the week and having one day off, which could vary. Employers need to foster a reputation as a good employer, and that can only come from competitive wages, a positive work-life balance for their staff and making sure staff feel truly valued and supported.
Accountant’s view
In doing my research for this Blog, I came across a statistic from industry leading HR firm Brightmine, that genuinely surprised me. Their research, undertaken over many years, established that an astonishing 70% of new employees decide whether they’re going to stay for the long-term or leave as soon as practicable, within their first 30 days of work.
This statistic shows how vital it is to get your HR ducks in a row from day one.
