Hold on to your stars

It is time to lift spirits in the workplace to encourage good staff to stay. Photo / Supplied

With New Zealand's unemployment rate at 7.3 per cent - its highest level for a decade - many employers mistakenly think it's easy to find good staff.

Should any of their star performers leave, they will be relatively easy to replace. No worries.

But nothing could be further from the truth.

Even last year, in the depths of recession, employers and recruiters had difficulty finding skilled, experienced people.

While the ranks of the unemployed were growing, it was largely unproductive and unskilled employees who were let go first. Most star performers decided it was best to stay with the job they had, and stopped job hunting.

That becomes obvious when you look closely at those out of work: 18.4 per cent of people aged between 15 and 24 do not have jobs.

These people are largely inexperienced new entrants to the job market. They may become star performers in a few years, but right now, they are not going to hit the ground running.

At the other end of the job market, only 3.4 per cent of those aged 55 to 65 are unemployed. This is the age group of vast experience and skill.

These are the people who immediately make a difference. And these are the people who are under-represented in the ranks of the unemployed.

Even while the unemployment rate has risen, this month the New Zealand Herald as well as the Trade Me and Seek job boards all reported an increase in job listings. But the large growth in advertised jobs was all in the $60 to $90K salary range.

That is the level where many of your star performers are, but it is not where most of the unemployed job seekers are. Your star performers now realise there are increasing opportunities out there.

The only sensible approach is to do everything possible to keep them. Look at these areas to make sure you are offering an attractive workplace to the staff who matter.

1. Salary

If your organisation imposed salary and hiring freezes over the past year to 18 months you could now be out of touch with market rates for your key roles.

Start researching, ask a professional recruiter, and ensure the salary packages you offer are still competitive. If they're not, do something about it now - don't wait for the performance review.

If someone does resign for a higher-paying job, consider a counter-offer. Previously I haven't recommended this as those who stay for a counter-offer generally leave within a year anyway.

But this is not a normal market, and if it works you will at least buy yourself a few months to find a replacement.

2. Workload

Many employees have been struggling with higher workloads as staff numbers have fallen. The ensuing stress is one of main reasons people change jobs.

Reassess workload and see if you can do anything to lift the burden on your staff. Think laterally. Maybe the company still can't afford more full-time staff, but it might be able to afford part-time help. Or maybe hiring contractors to cover peak workflow periods is a better solution.

3. Give the future back

As businesses concentrated on staying afloat, some cut back on training and career development. The slowdown also meant some expected promotions didn't eventuate. Possibly your staff don't know whether the business is out of the woods. In any of these situations, your staff will question their future with your organisation.

Let staff know the company is strong. Look at what training you can reinstate and, if you still can't afford outside courses, consider some form of internal training.

Think about whether you can make those delayed promotions.

4. Step out of survival mode

Last year, many managers put so much emphasis on cost-cutting and survival they forgot to treat their employees as human.

If you were guilty of this, you need to put it right now. Treat your staff with respect. Reinstate Friday-night drinks once a month if you can; smile and encourage laughter. Make your company an enjoyable place to work in again.

Keeping your stars:

* Say "thank you".

* Review pay rates.

* Re-introduce Friday night drinks.

* Tell staff they have a future with the firm.

* Have fun and allow staff to laugh.

* Use experienced staff to upskill colleagues.

* Re-assess workloads.

* Make a counter offer to keep staff who resign.

* Consider taking on a part-timer to lighten the load.


* Megan Alexander is general manager Robert Half New Zealand.