Some companies keep more of their staff for longer periods than others, but why? Studies have shown that happy, engaged and valued employees are more productive, perform better, call in sick less and are less likely to move to another company. Employee retention coupled with internal progression are some of the key metrics HR teams and managers are now measuring to gauge the success of their management team.
The UK technology industry is facing a growing talent shortage, especially when it comes to STEM professionals. Furthermore, this generations’ workers are showing less and less loyalty to brands and the workforce has, especially in technology, become very comfortable in looking for “the next best thing”. People are moving jobs much more regularly particularly when they get the opportunity to develop their skill set, can earn more money or just deem it to be a “better deal”.
Over the last year, we have conducted research in to what growth companies do to attract and retain their staff. What are these companies doing to stand out in such a competitive market to attract and retain great talent?
Inevitably pay, package and incentives are of importance to employees, but it’s not the most important factor to keep staff happy. A fair wage together with a great company culture and experience along with a real story or mission makes a company really appealing.
Company culture forms a very important part of why people WANT to come in to work and provide a great product or service to their customers, whether internal or external. A lot has been written about the positive impact on productivity that can be achieved by providing things like pleasant or funky office space for employees. Personally, I don’t believe you need slides between different floors or a token table tennis table to improve engagement with your employees, I believe it is deeper than that, but the slides do help! An environment that is welcoming, friendly, fun and where people can challenge themselves to get to their maximum potential are all very important factors. Company values go hand in hand with company culture and it is important that there is a feeling of clarity and unity in the message that the company broadcasts out. Even simple things such as pictures on the wall of company nights out or previous company events provide individuals with reminders of why their place is such a great place to work.
Communication reaches the core of employee engagement. Keeping your employees in the loop about what’s going on in the company will strengthen the feeling among employees that they are an important part of the organisation. Inform them about new projects coming up, company changes, new products or the outcome of a company survey, etc. Be transparent, share the news and course of action with your employees.
Much has been written about Generation Y and millennials and what their particular and distinctive needs are from an employer. Our opinion is that we shouldn’t be grouping individuals together and generalising them based on their date of birth. The key thing that has changed for this generation compared to previous ones is how we communicate and interact with one another.
Social media has an important presence as do mobile phones (as my daughter will testify to!), but this doesn’t mean that what motivated an individual to join a company 20 years ago has drastically changed.
Companies that provide great career progression and personal development are in high demand with learning and development key factors in most great places to work surveys.
As an employer and particularly with millennials, clarity is important. Be clear in what people can expect and what they have to do to progress within the company. Communicate with your employees and regularly follow up on their progress. Clearly communicated career plans, personal development plans, organic growth opportunities, regular conversations and action plans, personal development and flexibility to move internally make up for some key ingredients of a great place to work. This generation of employees is infinitely more mobile than previous ones and the opportunity to learn a language and work overseas is a huge motivator for a lot of individuals to stay with a business and push themselves to progress.
That innovation is on the list won’t be a surprise. In technology company’s innovation is encouraged and seen as a key feature. Using innovative technology in innovative ways and providing employees with a platform to do this is a fantastic way to engage and retain talent. Companies that thrive on innovation and positive change are companies that people want to work for.
Work/life balance has become an ever more consistent theme in the makeup of great companies to work for. Flexibility in the work place is what people want. This can be flexibility around office hours, working from home or a flexible system for working parents. Companies that focus on the results rather than the hours in the office.
From the above, it appears that rewards tend to fall into a number of categories based on either monetary reward, personal development and personal engagement. A lot has been written about how money isn’t a key driver for the majority of individuals because money realistically offers security. How often have you read in the paper that a jackpot lottery winner isn’t moving house because that’s where all their friends and family live and why would they want to move away from them? If employees feel engaged, have a sense of wellbeing and work with their friends, why would they look to leave?
External recognition is a great way to engender brand loyalty and team spirit which in turn not only reduces churn, but is also a huge draw when attracting talent. Industry awards such as Cisco Partner of the year or Palo Alto Partner of the year genuinely make people feel that they are making a difference and being recognised. Not only does this give a cause to celebrate and share in each other’s and the companies success, but also is a massive draw to prospective employees. Similarly awards such as the Sunday Times Best Companies to work for or Virgin Fast Track reinforce the message that they are working at a great place and it’s not just you saying it! Lastly using social media from LinkedIn and Glassdoor to Twitter and Instagram can give future talent a genuine opportunity to really see what it is like working for your business, so it is important that the right messages are being broadcast.