Year on year, an annual study conducted by misco outlines a strategic importance for retaining staff within the HR function. With the labour market becoming ever more competitive, the need to retain talented employees and avoid losing them to competitors is critical for businesses’ success. Globally, a correlation has been noted between organisations’ success and their ability to maximise the turnover of valuable employees. For several reasons, employee loyalty is decreasing, and many are not afraid to hunt for better opportunities. By analysing several factors that impact retention and could potentially lead to turnover, businesses can tailor their employer brand and thrive from the competitive advantage gained.
When implemented right, an organisation’s employer brand has the potential to offer numerous dimensions of value that in turn can impact the retention of employees. Considering that one of the top key challenges Maltese entities are faced with in the HR area is lack of experienced applicants, it is inevitable that companies should prioritise employees’ interests and strive to maximise turnover.
Although many would argue that turnover is dependent on the next best salary offered, employee retention is more complex than just the renumeration given. Particularly in industries which are extremely competitive when acquiring employees, it is very easy to lose talented staff to a slightly better financial package if there is nothing else that ties the employees to their current employer. On a global level, several countries are experiencing record rates of low retention paired with a low number of employees that feel connected to the company’s mission. In fact, various scholars argue that the development value and the management value offered within an organisation’s employer brand are crucial for retaining employees.
The latest job trends study conducted by misco concludes that employee recognition and orientation rank first as the company values that appeal to employees the most whereas monetary gain and rewards rank fourth. This outlined importance of employee acknowledgment and recognition highlight the significance of prioritising the managerial value offered by organisations. The behaviours and attitudes of superiors can also strongly impact employees’ motivation and retention. Employee development and enhancement ranked second in this Maltese study which further stresses the impact of the development value offered and the degree to which personal enhancement is facilitated.
As employers and managers, it would be foolish to assume that earning money is not one of employees’ top reasons behind their job. Although we should all strive to make sure this is not the top and sole priority for employees by building on loyalty and motivation, the importance of the economic dimension implemented within entities’ employer brand is inevitable. It is crucial to understand however that this dimension is more than just the salary offered. In addition to several perks and benefits that entities could offer including fuel allowances and gym memberships, the company’s reputation and the level of job stability employees are offered, could all still form part of the economic value provided that impact the overall retention of employees. According to misco’s survey, flexible hours and medical insurance are considered important organisational perks by most employees.
As concluded in this job trends survey, although the majority of Maltese employees are not actively looking but they would be open to new opportunities, only around one in ten employees change jobs every two years or more frequently. Maximising turnover does not mean retaining employees up until retirement age. Especially in this day and age, considering that most employees change jobs every six years or less frequently can be considered as a win against turnover. By making our HR goals realistic and thus attainable, entities can strive from a targeted employer brand that can help them tackle their key challenges effectively.
Kirsty Micallef, Senior Executive