Covid-19 crisis and effects on retention

The corona crisis will have a potentially devastating consequence I believe has not yet received a lot of attention, but will nevertheless harm many companies (and consequently, people) in the long run. Will have the Covid-19 crisis effects on retention? By Pieter Neels

The corona crisis will have a potentially devastating consequence. I believe has not yet received a lot of attention, but will nevertheless harm many companies (and consequently, people) in the long run. Will have the Covid-19 crisis effects on retention? Namely: the loss of top talent

Why do you need to read this?

  1. Knowing how to successfully retain employees will prevent your company from losing unthinkable amounts of productivity after the Corona Crisis. It’s the playoffs of the economic world & you’re going to need all of your star performers.
  2. You need the right tools to keep your workforce engaged & feel appreciated. You’ll be using these tools long after the dust of this crisis settles, creating amazing amounts of competitive advantage over time.

We’re going to go over the following things:

  1. The reasons as to why you’re going to lose your top talent
  2. The consequences of losing your star employees
  3. The importance of employee advocacy to retain your star employees to prevent an exodus & keep productivity sky high

Ready? Let’s GO!

Nakama Chart Covid 19

Results from the Randstad Study in 2018 on company leaving decisions.

What happens during a crisis? We experience a drop of bonuses/compensation, a lack of challenges and the disappearance of future perspectives (growth options). Unfortunately, it’s precisely in these categories that companies who are trapped under the pressures of the Corona Crisis lose out on. This is hugely frustrating for top employees who swear by the organization and the life of overachieving. They will use this crisis to reflect and make the decision to leave faster, in the search of new challenges & opportunities. Sure, white collar workers receiving a bonus are in a minority, but this one top performer almost always outperforms 4 other peers on average, thus generating the main chunk of income for a lot of companies.

The consequences of losing your star employees

To put it pretty bluntly, you’re company is going to be extending its own recession if it loses a big chunk of its productivity. As retention is not a main focus for many managers today, the lack of effort in this area is going to come back and bite them. The risk is real.

Batenborch, for example, already receives a remarkable number of calls from disgruntled employees who indicate that they want to change organizations. This displeasure stems from a sense of mismanagement and lack of support. If essential talent leaves, it can put a company at risk. It is precisely these high potential people that a company needs in difficult times and even more after the dust settles. I don’t think anybody wants an extended recession! So, let me show you some neat tips & tricks on how to keep your star performers!

Tips on how to keep your top talent

How do you prevent your highest producers from leaving?

Employee advocacy & employee referral recruitment should be a vital part of your retention policy. So what is Employee Advocacy? Employee advocacy is the promotion of an organization by its own staff. Employee referral is a strategic part of employee advocacy. A custom & digital Employee Referral Program, such as Nakama helps in the wake of a crisis (efficient & cheap recruitment), but also during one. Actively involving employees in the sourcing process sends out an important signal. You show them that you trust them.

How does it work?

 

Step 1: Create content✍

Create content such as an employee testimonial or an open position

Step 2: share content

Your workforce can help you find a new colleague in 2-ways:

  • Social Referral: Let your workforce easily share the content on the most popular social media channels such as Facebook, LinkedIn and WhatsApp
  • Direct Referral: employees can refer someone directly in a transparent, user-intuitive and GDPR-compliant way.

Share via LinkedIn & other social networks

Step 3: give feedback & show some love

Give feedback to your employees on their referred candidate and gamify the referral process by allowing them to collect points which they can exchange for rewards.

Create a journey for your ambassadors

That’s it! You will now start receiving tons of applications by referred candidates. These applicants are more likely to be better suited for the job, tend to stay longer & are acquired much cheaper than with traditional recruiting methods!

Written by Pieter Neels from Nakama.

Read more about the challenges of Covid-19 here.