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Motive8 in the MediaSecrets To Staff RetentionBy Josh Robertson THE secret to retaining valued staff has less to do with money and is more about creating an office culture people enjoy being a part of. It's the new people power, according to the pundits. A PricewaterhouseCoopers report predicted the balance of workplace power would continue to shift from employer to employee, leaving businesses to compete for staff amid the worst labour shortage in memory. At the sharp end of the recruitment market, small to medium-sized enterprises (SMEs) need to get a better handle than most on ways to retain valued workers. In a survey of 500 SMEs by "incentives agency" AD+INC, 65 per cent said it would take up to six months to get a replacement for a key staff member "up to speed". AD+INC used the survey to launch Motive8, its online rewards program for SMEs, providing "cost-effective incentives" for employees. It allows businesses to set performance targets by which employees can earn points redeemable against rewards including travel, electronic goods, homewares and entertainment. While some SMEs look set to join big business in using incentives programs, others argue a strong "workplace culture" gives many small businesses a key advantage in winning staff loyalty. A survey by business coaching company Shirlaws found 70 per cent of businesses believed a clear culture was "the most important factor in recruiting and retaining key staff". But SMEs spent only 10 per cent of their time developing workplace culture, the survey found. Shirlaws CEO Jeff Herrick said the discrepancy showed many SMEs were "still not getting it right" on culture. "Every commercial decision made in business has a cultural impact," Mr Herrick said. "Business owners can't afford to underestimate this. "As the skills shortage worsens and 'flighty' Gen Y workers dominate the employment landscape, business culture is going to be invaluable for retention and attraction of staff." None of this is news to LJ Hooker branch acting CEO Ben Armstrong, who hears complaints about staff retention - especially of Gen Ys - on a regular basis. Happily for Mr Armstrong, it's not a problem his business shares. His staff have knocked back approaches from rival companies offering more money and higher-ranking positions. "They've come to us and explained who's offering them what and then told us that it's not an option to them," Mr Armstrong said. "Most people aren't actually driven purely by the dollars - we pay pretty well, I'm not saying we don't - but there are more important things in their lives." What did matter, Mr Armstrong said, was the culture of the business, something he called "the social side ... the fun side of work". "It's an acceptance and a caring for everyone around you that creates a really good atmosphere, it makes work a pleasant place to be," he said. For four years, managers at the branch have worked at fostering a culture based on shared values among a staff of 55. Mr Armstrong said what began with "a lot of grand ideas" at the top evolved into a structured approach, with staff "embracing, adding to, taking ownership of and in fact driving the culture". Values such as "growth opportunities for staff and customers" were connected to activities, such as in-house sessions for staff saving to buy their own homes. "Real estate is what we do and know, so we'll hold sessions where we discuss what to look for and what not to look for," Mr Armstrong said. "They'll take the advice on board and go away and get really excited about buying a home and that's great." Every decision by a manager, Mr Armstrong said, was "an opportunity to spell out why you made a decision and it all comes down to what was said to them three years ago". "So it's a reminder of that culture and it drives it deep," he said. He added that it's not only Generation Y that sought a fulfilling and enjoyable work situation. "It's not just the younger generation," he said. "We all want it."
Keep Staff Happy Through RewardsBy Miawling Lam Employers are increasingly offering their workers incentives and performance-based rewards in a bid to retain their services. The ease and fluidity with which employees can move from jobs has meant retaining staff is now at the forefront of the jobs market. Angela Dillon, managing director at incentives agency Ad+INC, said the benefits of acknowledging the efforts of employees must not be underestimated. "With the tight job market at the moment, employees can jump from company to company, so you need something a bit more," she said. "By rewarding for performance, you can create sticky employees, make them feel a needed part of the business, and increase productivity along the way," she said. A recent survey of 500 small and medium businesses, conducted by Ad+INC, found that when it comes to the corporate sector, there was a large disconnect between knowledge and action. The findings revealed that while 88 per cent of businesses recognised the advantages of rewarding employees, only 52 per cent actually followed through and offered incentives to workers. Ms Dillon says that the key to motivating staff is offering a rewards program which can be customised according to people's age and interests. "What we find is that unless you can tailor it to their needs, you don't get their attention at the start of the program and it's not going to work for you," she said. Ms Dillon said while older employees prefer family experiences and dream of upgrading their entertainment systems, their younger counterparts are motivated in other ways. "Generation Y want Nintendos, iPods and the latest mobile phones with all the features, but the biggest thing they like, and it cuts across all demographics, is offering variety and choice," she said. This is echoed by Julie Mills, CEO of Recruitment and Consulting Services Association. Ms Mills says considering turnover in the on-hire industry stands at a record 43 per cent, flexibility, training opportunities and career progression can be used to retain staff. However, she is quick to advise that corporate rewards programs were not the be-all and end-all in retaining staff and raising morale. "Whilst including a mix of fixed pay and incentives is one way to motivate employees, it's important for employers to remember that no amount of time spent on developing clever incentives will make up for good staff management, effective training and ongoing communication," she said. By Miawling Lam,The Sunday Telegraph, Sunday 12, August 2007. | ||
