Losing and subsequently having to replace a member of a team that works so well is one of the hardest things to do, that’s why learning to retain that team as long as possible is fast becoming the number one priority for Tech businesses in the UK. According to research completed by Oxford Economics2, the average cost of replacing a performing employee in the UK is £30,614 based on lost output while the replacement employee gets up to speed, and the logistical cost of bringing in a new worker.
Whilst it’s inevitable that people will move on eventually, the tips and techniques below have demonstrated success in ensuring that you can hold on to your team as long as possible, by making them feel happy, wanted & appreciated.
What are the benefits of increasing team retention?
- For starters an extra £30,000 in the bank, which certainly isn’t to be sneered at
- The longer someone is in your business the more they become a subject matter expert, which could lead to increased efficiency and cost savings
- Longevity of service increases morale within teams as they form long term bonds and gel, a key figure moving on from a team can quite often lead to a domino effect
- You don’t have to go through the rigmarole of hiring and replacing people constantly
- You’ll find that you attract better candidates, as the best people will be looking for places that have a stable and settled environment
- High levels of retention are indicative of a happy, well performing team and will ensure that you’re completing work and projects to the highest possible standard
So, what can you do to get to the point where employee retention is something you’re known for?
It all starts with who and how you recruit:
The best place to start is at the beginning, with who you choose to hire, and why. Understanding and being clear on what’s needed to be a success within your team and the wider business is imperative if you’re going to get people that will want to stick around for a long time.
If you aren’t sure what a good hire looks like, and what type of person will fit into your team then your process is going to be a lot of guesswork and mistakes. You’ll need to sit down with your current team and other leaders within the business to get into the nitty gritty of what values are important to the business, which are desirable, and which traits would make someone an outright no.
It’s easy to be wowed by someone in an interview and forget these things, so if needs be, have them written down and make sure you get answers on key areas of your culture that you’re happy with before moving forwards. Don’t blurt out what your company’s culture is straight away in an interview, allow the candidate to speak and get an understanding of what they’re like and see how that matches up with your values. By giving them the answers upfront you may find they tailor their responses to what you want to hear.
There’s more information available here if you need help defining what your culture is.
TIP: Beware of job hoppers. If someone’s moved jobs every year for the last 5 years there could be a perfectly good reason for each and every one, but it’s important to know why. If you aren’t 100% happy with the answers, then chances are you could find yourself back on the market quite quickly. Some people move jobs more often than others, and that’s fine, but you want to ensure you’re weeding out the people that move as soon as there’s any turbulence or because every manager they work with has an ‘attitude problem’.
Create clear and defined career advancements paths, and provide ongoing training & education opportunities:
Creating a culture of internal promotions and advancements, coupled with a secondary path with incremental pay and responsibility increases for people that don’t want to climb the corporate ladder is imperative in making employees feel valued and that they have a long-term purpose within the business.
Defining and setting people off on that path from day one is a great way to instil confidence in your abilities as a manager and gives people something to work towards in the short, medium & long term. Conducting regular performance reviews and ensuring that people are given the support to make it to the next rung are also great ways that you can continuously check and improve the morale and general happiness of your team. It allows you to nip any problems in the bud before they grow too large to stop, and also means that your team know you are serious about their future within the business.
This needs to go hand-in-hand with regular and relevant education & training opportunities. This can’t be something drawn on the back of a fag packet once a quarter, it needs to be something that’s engrained in the company and your teams’ culture throughout. If you invest in your employees, they will repay you multiple times over with increased work rates and a higher retention. Lots of companies do this badly, so by ensuring you have processes in place you’ll be setting yourself apart from the pack.
Keep the lines of communication open, always:
More often than not we hear frustrations from members of staff around how they don’t know what’s happening at the business, or that they feel siloed and voiceless. To nurture an open and honest culture having open two-way communication between management and employees is extremely important. Allow members of staff to speak frankly about things that are worrying them, or that they’re not happy about and actually act on them. In doing so you will increase trust and ensure that problems don’t boil over after months of simmering below the surface.
TIP: Regular anonymous employee feedback surveys are a great way to see how you’re doing in terms of communication and instilling faith in your team.
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