For any organization, it is very important that it is able to attract, retain and motivate its employees.

Not only is finding suitable talents very difficult nowadays, but also keeping them engaged and motivated can be extremely tough given the dynamic environment, and ever-increasing expectations of the employees.

The emergence of a younger and a more aware workforce with a very different attitude towards work, as well as an increasing population of older workers very close to retirement also makes the job of HR managers tougher.

In the current scenario, an overwhelming majority of HR professionals report that among all the challenges they face, the toughest one is recruiting and retaining good employees.

According to a recent study, HR managers are spending an increasing amount of time in recruiting, and training workers only to find themselves repeating the exercise soon due to the very high levels of attrition.

The impact on bottom lines

The operations of the company are often disturbed due to the lack of continuity and customers are often extremely upset because they keep on facing new people trying to handle their accounts.

Companies also often fail to appreciate how much employee turnover costs; to replace an employee it can cost anywhere between $7,000 and $14,000, the cost of a new car.

In specialized sectors, for example, the healthcare industry, it can cost a mind-boggling $185,000 to recruit and train a replacement critical care nurse. Such huge costs then beg the question as to how companies can survive employee attrition. Some suggestions:

A Positive Environment

All employers need to appreciate that their employees are critical assets that need to be taken care of and nurtured everyday. Employers must be alive to the need for providing a work environment that is progressive, enabling, and gives the employee adequate respect.

According to studies, one of the principal reasons why employees quit is because of relationship issues with their supervisor, who are generally oblivious to the impact they have on employee retention. They need to be taught to appreciate the importance of employees and be equipped with all necessary skills and tools that let them implement a superior level of employee engagement.

Recognize and Reward Performances

While one of the basic recruitment tools may be monetary compensation, it has been proven time and again that money is not enough for employee retention.

All employees have a basic need for appreciation of good work, and unless employers have a system for recognizing performances and rewarding them it will lead to employees feeling disgruntled.

A program for recognition and reward does not necessarily have to be expensive; it is the recognition that counts and employers can be really creative about structuring the programs. Ideal Auto USA, for example, rewards employees with the best sales performances during the year with a citation in the presence of all other staff.

Involvement and Engagement

It is the management’s job to ensure that workers are productive to the maximum extent by being completely involved with the work they do.

The level of engagement can be enhanced if all participants can contribute their ideas on making processes more effective and improved. When they are allowed to do this, they feel more empowered and get a true sense of ownership.

Many companies have a year-round program of inviting their workforce to make suggestions on how to make manufacturing, delivery, and products better than before.

Career Development

Once the initial thrill of getting a better pay package has worn off, most employees become extremely sensitive to the issue to skill development.

Studies have revealed that many employees would consider switching jobs with the same compensation package if the new employer offered better opportunities for career development as well as greater responsibilities and challenges.

HR managers should try and identify opportunities within the organization that employees with talent can take up so that workforce does not leave for other organizations simply due to non-monetary career aspirations.

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