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Why are staff retention schemes important? If you run a business you are sure to have heard a lot about staff retention and motivation programmes. However, you could be excused for wondering why some professional organisations regard them as so important. Perhaps the most common reason to use them is because they can save money. Rewards schemes are relatively straightforward and cheap to implement in the workplace and, if they are effective, you will find they result in your costs falling. One of the areas companies often wish to reduce budgets in is recruitment and training. This is best achieved by cutting staff churn, rather than the thoroughness of your selection system and induction programme. To put it simply, if fewer employees leave your organisation, you will have to spend less on finding replacements and training them. Once you start to add up the costs involved in taking on a new member of staff, you will understand why this is so important. Job adverts, recruitment agency fees, the time spent by managers to assess applications and interview candidates, organising contracts and running initial training all contribute to the final bill. However, the direct costs are perhaps not the most damaging aspect of seeing good workers depart. Losing an experienced member of staff with specific skills can cause major disruption in their former department. Senior managers often don't realise how important certain individuals are until they have left, meaning the company loses important knowledge. While this can be damaging in technical and production functions, it may be even worse in sales and account management teams. Happy clients tend to have strong relationships with their direct contacts and a change can convince them it is time to consider what other suppliers have to offer. A well-designed staff retention scheme can help to reduce the number of people who move on by making your key staff feel valued, developing team spirit and giving people something to work towards. However, there is far more to it than simply offering the chance to earn rewards in return for achieving certain targets. You need to establish why people choose to look for other jobs and if there are any major issues you should address. Holding thorough exit interviews with departing staff and organising a confidential company-wide questionnaire inviting employees to comment on what they like and dislike about the organisation can both help you to do this. While you cannot hope to deal with everything raised, the results will give you a good overview. You can then use that information when putting together a rewards scheme designed to help cut staff churn. For help organising staff retention and motivation programmes for your business, call in the experts at Love2reward.
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