UPFRONT To have and to hold

That’s the challenge for employers who now rate employee retention ahead of both compliance and recruitment, according to recent survey by recruitment company Hays.
It canvassed 1000 employers – more than 43 percent of whom rated retention as the most important issue facing their organisation in 2006 – “not surprising” finding given the ongoing skills shortage, according to Hays New Zealand general manager Jason Walker.
“Companies are using variety of strategies to attract new talent, but it seems retaining them has now become more important to employers. With candidate-driven market where skills at all levels are in demand, it’s understandable retention is now even rated above attracting talent.”
He says career progression, the provision of new challenges, salary, training and development, and strong management are all important elements of retention strategy. Living up to employment branding is also essential.
However retention plan cannot be approached with ‘one size fits all mentality’, says Walker. While some employees want flexible hours, others may be after opportunities for career advancement. Generational differences also come into it.
There’s also very direct bottom-line benefit for holding onto staff, adds Walker. The average member of staff will cost around 90 percent of their salary to replace, notes Walker.