The Traditional Retention Policy
The reasons that departing employees give for leaving lie at the core of traditional retention policies. The following issues regularly come up in exit interviews:
- The employee feels that he or she does not fully understand the employer’s expectations.
- The remuneration policy is not transparent or does not offer any perspectives.
- Employees hardly ever receive feedback on the work they do.
- The employee sees hardly any opportunities to successfully develop within the company.
Many companies try to avoid these issues by focusing on constant progression. To hold on to top talent, they give maximum attention to employee development. Companies offer courses and training, and they design a clear career path for each individual. This constantly prods talented employees to learn new skills and “the ceiling” that they sometimes feels has been reached can be crossed off the list of reasons for leaving.
Some companies offer extra fringe benefits to employees, such as the ability to work from home and flexible hours. In the best cases, companies even give their employees the flexibility to create their own package of fringe benefits. After all, who wants to leave a company where you can get more holiday time in exchange for a smaller car?
The Other Side of the Coin
Those measures get your employees to commit to your company for a longer period of time, but is it always a good thing? A committed employee is not necessarily a happy employee. Perhaps the person can do nothing else but remain. Caring for a family or a lack of alternatives keep him or her quietly in place. This is the other side of retention: companies do their utmost to get employee commitment and assume that the employees who do remain are satisfied and motivated.
In reality, however, this is often not the case. Some employees are in the wrong roles and will never feel entirely at ease in their role despite all of the retention measures. It’s time to look at retention from a different angle.
A Loyal and Engaged Team
So, how can you create a truly loyal and engaged team? It all starts with choosing the right employees. Instead of exclusively investing in a retention policy, it’s better to concentrate on employer branding and a watertight selection process. By recruiting passionate talent right from the start, you can take retention for granted. You do not need to convince these employees to stay as they are already one hundred percent behind your company. Does this mean that traditional retention measures are a waste of time? Not at all. However, they will only be effective when they are used for employees who are motivated one hundred percent already.
Addressing the New Generation of Talent
Generations X and Z have different norms and values compared to baby boomers. A high salary or a flashy car alone are no longer enough to persuade millennials. They look for meaningfulness and urbanisation. This new generation places much greater importance on corporate social responsibility. A fair and sustainable policy separates you from your competitors. It not only lets you attract the right talent, but also enhances the reputation of your business.
What about urbanisation? Basically, millennials are unable to go without the benefits of the city. They do not want to be dependent on their cars and are not averse to public transport. So, anyone who wants to attract this new generation should ensure they are located in a large city.
Do you need help making your selection process more effective? Feel free to contact us and we will be pleased to provide you with tailored advice.