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How to keep your best staff on board

Employers and managers need to start recognising the efforts of their staff, or risk having their best people walk off the job, according to recent findings from the Kelly Workforce Index.

The survey revealed the top reasons employees resign, which mostly revolve around the kind of relationship they have with their boss, such as feeling overworked, receiving little coaching or mentoring and having little hope for career advancement. The reasons included:

1.        Having a negative relationship with direct manager.
2.        Little hope for career advancement or growth.
3.        The reality of a role does not match what was promised during the recruitment process.  
4.        Employees are overworked and stressed out.
5.        Employees perceive a lack of coaching and/or mentoring from their employers.
(Kelly Global Workforce Index, 2011)

The survey collected the views of approximately 134,000 people in 29 countries, including more than 20,000 in Australia. According to figures, 60 per cent of employees believe they will change their career at least once in their lives, which means employers need to work hard to create a work environment that will help to retain staff for a long period of time.

“People are already a business’s largest expense, replacing an employee costs an employer up to three times that persons annual wage, so constant employee turnover can quickly spiral out of control – not to mention the interruption that turnover causes to productivity,” said Penny O’Reilly, general manager at Kelly Services Australia.

Ben Thompson is managing director of the EI Group, which provides advice for small business owners on HR and employment issues. He believes that one of the benefits of small businesses have over large corporations is that the managers often get to know the people they work with on a far closer level. However, one of the problems for many small business owners is that they may not necessarily have had much experience in management or HR issues.

“Employers shouldn’t focus on recognising when people go wrong. The best way of increasing employee engagement is to focus and recognise when people do well,” Thompson advised, adding managers should provide their employees with at least four positive statements about their work for every negative comment they offer.

“You should spend the best part of your day looking for opportunities to thank, congratulate and reward employees for the efforts that they put in.”

* The next issue of Smarter Business Ideas features a story on how to keep your staff without spending valuable dollars. See the story here after April 8 2011.

 

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