Businesses must ensure they offer career development and training opportunities in upcoming performance reviews if they want to retain key staff, industry experts say.
The warning follows the release of two separate surveys which reveal a significant amount of workers are considering leaving their current jobs.
Hay Group’s Insight Survey shows 33% of 3,500 respondents are looking for a new job. More importantly, it points out that the cost of replacing employees is between 50-150% of salary.
Additionally, data from Drake International shows 50% of Australian workers are now thinking about leaving their job, with 25% actually planning to make the switch.
The Hay Group survey highlights the importance of retaining employees – it states that companies which “engage and enable” employees record a reduction in voluntary turnover of 54%.
With that in mind, here are the top five things employers need to discuss in performance reviews to make sure their staff stay on board.
Career development
Hay Group head of Insight Sam Dawson says the biggest key to keeping staff is offering career development. Opportunities to take on new roles, along with training, provide good reasoning to stay.
“One of the key things we know drives people to stay with their current job is a good level of appropriate training, and a direct path upwards in terms of how to get to the next level, and what they need to get there.”
“That feeds into the performance review process. Employers need to spell that out for people and let them know exactly where they are going.”
Kye MacDonald, co-founder of Skye Recruitment, agrees with this method but says employers can’t be too pushy.
“Some people are just happy with what their job is. Many are just happy doing the job they are doing, and if they are doing it well, just provide that feedback for them.”
Let your staff rate your strategy
MacDonald says performance reviews aren’t just about providing feedback to the employee. Workers will feel more valued if they are able to provide some thoughts on how they perceive their role within the company.
“I think it’s important employers go into the review process not just saying “here’s what you’ve done well, here’s the bad stuff, here’s a pay rise”. But you need to ask the employee questions, provide feedback, ask where they want to go. Ask some open questions about their thoughts on the business as a whole.
Accept some criticism
Employers need to accept some suggestions about how to either improve the current workflow, or suggestions for new projects, MacDonald says. He says performance reviews are a key time to find out how the business is actually running – not just how you think it’s running.
“In addition to all of this discussion that’s going on, you need to ask whether there’s something the employee wants done differently. Within reason, of course, but ask whether there’s anything they would like to see changed. It opens up new discussions and allows employees to contribute.”
Flexibility
One of the biggest deal breakers for employees, especially Gen Y, is the concept of a flexible workplace. Dawson says this is becoming more important, and it’s something employers need to recognise.
“Flexibility, in whatever manner you provide it, is becoming more important and what we’re seeing is that people will consider leaving if they don’t have it.”
MacDonald says businesses need to be able to consider helping employees with some of their goals – inside and outside work – that require some flexibility.
“Be prepared to accept some requests, or at least work around them. Someone might want to take three months off for a trip, or to do the Kakoda trail, or whatever. Many might assume they won’t get that time off, and just leave the job.”
“But you could come to some sort of arrangement, and they’ll be able to come back to their previous role then, without needing you to find someone else in the long-term.”
Give them something new
Employees need new roles. Dawson says giving workers new projects, responsibilities and something to do gives them a sense of purpose within the business and allows them to stay on for much longer than they would have otherwise.
“I think they’re looking for something fresh. People want to be proud and committed to the business, and one of the ways to do that is to give them new things to do. Train them up and provide them with a new role, and it’ll increase their satisfaction.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
