Employee retention is important for success

by habiba_abudu | April 12, 2019 7:08 pm

By Steve Leslie

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Employee retention is important for a successful business.

In the heat of the summer, when customers are at their most demanding, and headaches from certain projects arise, having an employee leave the company can be more than devastating. It is no wonder that one of the most common questions heard amongst different companies in the aquatics industry is, “How do you prevent turnover?”

Although this seems to be the most logical question to ask, turnover may not actually be the problem. According to a 2017 study conducted by LinkedIn, 57 per cent of recruiters believe the top challenge employers face is the competition for talent in the marketplace[2]. Turnover is listed last with 23 per cent of the votes. This is why the author believes companies need to shift their question to become, “How do I find and attract great people to the company?” This is the main focus of this article, because if companies can answer this question, turnover rates will decrease by default.

One of the key ingredients for approaching this task relies on throwing out the old ways of thinking when it comes to hiring. It is time to grasp a new, modern recruitment process which focuses on knowing what the company wants; understanding what candidates and employees are looking for; and knowing how to make the company appealing for top talent to thrive.

Some businesses might already have a system in place that has helped build the company and establish a low turnover rate. In this case, keep reading, and be sure to write an article to challenge this information.

Knowing what the company wants

Who does the company want to hire? What qualities do they need? How does one determine an ambitious person? What skills do these people need to have (including those that cannot be listed on a resumé)? For instance, does a person have a large network? Are they influential amongst that group of people? What better way to increase revenue than hiring someone with a large network of potential customers? These are all questions one needs to ask themselves before anything else.

How should candidates showcase this information? Some companies might want to consider having candidates submit a 30-second video to showcase their talents, while others may want to test their problem-solving skills by giving them a scenario to see how quickly (and correctly) they can respond. Another consideration is who does one know that fits their company’s desired traits? Even if those in mind are not interested, chances are they know others who share these same qualities.

What is a common trait amongst the worst employees one has had and how can these characteristics be screened? All of this is crucial information to know before beginning to search for new candidates. Further, this list will also help to determine if the people currently within an organization are actually a good fit.

When looking to hire a new employee one should take the time to sit down and write down a list of qualities they are looking for, as well as establish a list of qualities that will turn one off from hiring someone. The more in depth one can make their list, the clearer the ideal person (or people) will become.

According to an article on HRReport.com, Canada has the fourth highest turnover rate in the world.There are two reasons for this. First, it will help to seek out individuals that meet a certain criteria, much like when one purchases a new vehicle and suddenly starts to see that same vehicle everywhere. Second, this will be extremely helpful for those who are a “hopeless romantic” when it comes to hiring people. In other words, if one is persuaded by how a person makes them feel, then he/she needs a few “deal-breakers” to help them make a decision in the heat of the moment. This is probably the most crucial step in establishing a company’s new hiring system. How will one ever find the right candidates if he/she does not even know who they are looking for?

Know what employees want

In the following data, the author looks to disrupt the preconceived notion of what attracts people to want to work for someone—whether with their current company, or seeking a new opportunity. Besides money, today’s workforce has a strong belief in other motives, such as purpose and opportunity, but some employers have not caught on quite yet.

According to an article on HRReport.com, Canada has the fourth highest turnover rate in the world (see Figure 1). The article goes on to state, “The top global reasons for employees leaving are a lack of opportunity to advance (45 per cent), dissatisfaction with senior management (41 per cent) and the work environment or culture (36 per cent).[3]”

Further, an Inc.com article includes two points that reinforces this information among the soon-to-be-dominate part of the workforce. The first states 64 per cent of millennials would give up a $100,000 job for a $40,000 job, simply because they found the work to be boring. The second found the biggest determining factors, for nearly 80 per cent of millennials, is the people, the culture, and the opportunity associated with these job openings[4].

This evidence can also be found in the current largest age group in the workforce. In a workplace study conducted by the Government of Canada in 2014, the most dominating, and surprising data was from the 35 to 54 age group. This demographic dominated in the two main fields:

• Paid workers who are actively looking for a new job.
• Paid workers who are not looking for a new job.

When comparing the average wage of these two sections, within this age group, those who were actively seeking a new job actually had a higher average wage than those who were not looking for employment (see Figure 2)[5]. To summarize, despite popular belief, there is sound evidence that most people in the workforce today, are not primarily motivated by money.

In the book, The Entrepreneur Rollercoaster, author Darren Hardy mentions five main categories employees focus on. If applied correctly, they can give a company’s new hires and current employees the best opportunity to stay and thrive. They include:

• People—who would they be working with? The most powerful attribute in hiring great people is that they will attract more great people to the company. Simply put, great people want to work with great people.
• Challenge—will the job challenge them in a way where they can excel and they do not have to check their brain at the door? The book also includes an insightful quote from actor, Hugh Jackman, in which he states: “Quality talent is attracted to the extraordinary challenge that’s presented. Don’t just dangle the prospect of a good job; tempt them with the prospect of quality work. There’s a difference, and it will dictate the talent you attract.” That said, give people tasks that challenge their intellect and forces them to develop new solutions. Great people love challenges.
• Opportunity—are there opportunities for advancement? Are there opportunities to grow different departments? Are there new opportunities, within the company, that an employee can undertake? Are there opportunities for employees to excel at and be rewarded for? Are there any opportunities, outside of the company, employees are interested in? Is there a way the company can help support these opportunities? Most importantly, are the company’s goals big enough for great people to be attracted to the opportunity? Great people love opportunity—and will choose the potential to do something great—over the security presented by a big paycheque.
• Growth—does the job promote personal development? Are there any seminars, conferences, and/or courses that can be pitched to employees to attend—whether pool related or not? Richard Branson says it best, “If you take care of your employees, they will take care of the clients.” Great people are always looking to grow.
• Money—as stated previously, money may be an important factor, but not the primary focus (which is why it is the last item on the list). Great employees care more about the people, and the opportunity than they care about how much a job pays (perhaps this could be the company’s “deal breaker” factor). Even with this in mind, these employees are worth a premium wage; however, they will also deliver much more in return. How much should someone earn who could potentially eliminate even just half of one’s headaches, while helping to grow revenue? Great people do not cost money; they help companies make money. They just need the opportunity to prove it.

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Having a good understanding of these categories, as well as learning and understanding an employee’s personal and professional goals, will provide one
a great base for finding and attracting top talent
to his/her company. Remember which points are most attractive for top talent and craft the employment opportunity in a manner that focuses on these categories. Be sure to effectively communicate the appropriate information when looking for great people.

Communication is key for employee retention

For one’s current employee roster, the best thing to do is establish great communication with people. Take an interest in their lives and bring a new perspective on mistakes. Remember, any mistake that is made is a learning opportunity. The question then moves from what did they do wrong, to what did they learn? If a bad decision was made, be thankful they at least had the confidence to make a decision in the first place. If a mistake keeps happening, even after the behaviour has been corrected, then the person is either being careless or there could be a potential failure in communicating clearly and in a way the person understands.

Most of the time, it is the latter, and if this is the case, it is important to focus on how the person learns new things. The best way for an employee to learn is to show them. Demonstrate what it is they are to do and, at the same time, reiterate the reasoning behind any key steps and the decision-making process. When it comes to the soft skills required for effective communication, a great book one can learn from is How to Win Friends and Influence People by Dale Carnegie.

Be a leader people believe in and want to learn from. Employees should have targets to strive toward, be rewarded when goals are reached, and corrected when necessary. Rewards are one of the most effective ways a company can increase its retention rate. Although money can be a good compensation, recognition is the ultimate secret weapon. Further, recognition can be as easy as a pat on the back, or sharing their successes with others (especially in front of them). As Carnegie states in his book, “People will work for money, but go the extra mile for recognition, praise, and rewards.”

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Communication is the key to any relationship, and making assumptions will be one’s biggest enemy. Having an open line of communication can benefit a relationship tremendously. When an issue is not resolved between people, it is left to fester and grow. Give it time, and it will balloon into a much larger issue filled with anger and resentment. However, by learning how to communicate with others, and be open to new ideas, relationships will only prosper.
It helps build employee confidence in his/her decision-making skills, trust in those who are leading them, as well as even prompt more efficient techniques and operations. After all, why would one pay for a person’s time and only use their hands when they can access their mind as well? Again, great people love challenges. If they are encouraged to think differently and offer new solutions for tasks, not only does it build trust, but also employees start to take ownership—especially when those ideas are implemented and rewarded.

Whether it is simply adding an extra step to save time and/or money in the long run, or revolutionizing an entire industry, when people can effectively communicate and offer new ideas, they are more inclined to stay in that particular work environment.

That said, one cannot control what other people do. Instead, it is better to focus on what one can control. This includes making decisions that will push the company forward as well as influence more great people to join the team. It is not only important to figure out who should work for the company, but also understand what they will want in return. These employees must be willing to build and strengthen communication with others within the company. By taking the time to do this, a company can develop the best plan of attack when it comes to reducing employee turnover. Further, these companies will also have the opportunity to build a business where great people are willing to do whatever it takes to help it succeed.

[8]Steve Leslie is the customer service manager at Highbury Pools, a manufacturer and distributor of pool products, including steel walls, equipment, and vinyl liners, based in London, Ont. He has four years’ experience in the pool industry, is also a real estate investor, has worked for the Canadian Department of National Defence, and is a former business owner. He can be reached via e-mail at steve@highburypools.com.

Source URL: https://www.poolspamarketing.com/trade/features/employee-retention-is-important-for-success/

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