Resources: Blog Post
Recruitment not the same in 2016
We are now in an employee’s market, rather than during economic downturns when it’s often an employer’s market. Business owners have to concentrate on two fronts:
First, they must ensure they have a culture and environment that prevents their current employees, whom they have trained and invested in, from being enticed to go somewhere else.
Employees leaving your business is costly. Let me share few examples:
- An entry-level employee leaving your business can cost between 30 and 50 per cent. On an annual salary of $25,000, it could cost you $12,500
- Mid-level employees leaving your business can cost upwards of 150 per cent. On an annual salary of $55,000, this could cost you $82,500
- High-level or highly specialized employees leaving your business have to potential to cost an approximate 400 per cent. On an annual salary of $100,000, it could cost you $400,000.
Second, after stabilizing your workforce through excellent retention, you must prove to the marketplace that you’re an “employer of choice.” That means you’re a company that potential employees want to continue their career with by accepting the company’s offer of employment.
You’re bigger than you think
The key for businesses that want to to entice more prospective employees in 2016 is to not restrict themselves to small business thinking. Employees are seeking more than just a pay cheque. They want flexibility, benefits and a culture that respects the employee base.
Businesses need to offer more than just a job; they need to offer a career. They need to embrace flexible working arrangements, work from home arrangements and provide a benefits package that will convince a prospective talented employee to choose them. In a nutshell, businesses need to offer Fortune 500 type of benefits and thinking, while still being located on Bay Street, Toronto.
Retention is a good investment.
Build on employee engagement
High levels of employee engagement can boost your revenue growth up to 2.5 times its baseline. It’s no wonder organizations are focusing on improving their employee engagement to drive better performance. Deloitte Global Human Capital Trends research shows that 78 per cent of business leaders’ rate retention and engagement as urgent or important. The issue of “engaging people well” is becoming one of the most important competitive differentiators in business. Employees who are engaged feel involved, committed, passionate and empowered. Employee engagement is an important predictor of organizational performance and success. Engaged employees drive the innovation, growth and revenue that growing midsized companies need to thrive.
The influx of Millennials is forcing business owners to re-think the concept of engagement. According to PwC research, Millennials will account for nearly half the global workforce by 2020. They already constitute a majority in some companies. Organizations that want to attract and retain fresh talent will need to recruit Millennials and ensure that their journey through onboarding is supported through mobile and social platforms.
Millennials want to feel safe and comfortable. It makes them more productive! They are employees who are willing to step outside their comfort zone. When that risk pays off, they’ll feel a sense of achievement and you’ll see an increase in engagement. You need to set the tone to enable your Millennials to learn and give them opportunities to develop.
How is your organization successfully retaining employees?
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About the Author
Aline Ayoub has more than 30 years experience in the conduct of human resources for Hudson’s Bay Company, Loblaw’s and Sears Canada. Aline is also an avid blogger and author of The 10 Essentials Steps To Former Executive Immigrants Getting Their Dream Job. As founder of Aline Ayoub HR Consulting, Aline helps small businesses reduce their time in hiring the right person. She is passionate about coaching and has helped thousands of executives to overcome any of their career challenges.
This blog originally appeared on Aline Ayoub’s HR blog. Posted with permission.
Filed under: aline ayoub, employment, millennials, retention Tagged: aline ayoub, employment, retention