Build value through your people

With all that has happened in business recently, have we really considered the impact on staff?

You may be undertaking in-house surveys to understand how to raise staff engagement and looking to develop skills and promote from within. But are you truly focused on preventing the attrition of your key talent?

Forty-nine per cent of employees are looking to leave their jobs and 65 per cent of employers are currently recruiting, according to The Great New Zealand Employment Survey® conducted by Clarian Human Resources. That means an active workforce ready to move into your competitor's arms or to move overseas where opportunities may be more challenging.

And with 45 per cent of employers indicating attrition is not a priority this year, it is likely that your key talent are amongst those wanting to move on, given their ability to secure roles more easily than less skilled staff.

Organisations seem to be asking the correct question: how do we retain talented and skilled staff? According to the survey, getting the right person on board from the start, paying well, providing career development and having great leaders provides some of the answer. While results indicate employers feel there has been an increase in high quality candidates, they also suggest the number of unsuitable applicants applying for roles has also gone up. Ask yourself: are you looking for someone who doesn't exist or for a skill set that hasn't yet been developed in the available workforce? So, what can employers do to learn from the recent past and build equity in their organisations through their people?

Get it right the first time

Employing the right person right up front for a job is crucial, but many of us know that already.

To build a future-proof workforce, you have to be clear about exactly which skills you need (not want) and stick to your guns until you find them or develop them. All too often, the person who is perfect on paper turns out to be the worst person for the job. Make sure the fit is right at every level, including culturally, within the immediate team, their work ethic and their future potential contribution to and growth within your business. Make sure you are not looking for someone who doesn't exist.

As Jim Collins wrote, having the right person on the bus (using a bus analogy) is important - "first who, then what". However, it is also important to make sure you have identified the right role. Be sure to describe the job and fit the person to it, not the other way around. Otherwise, you'll be left with a hole that is difficult to fill should they move on.

Look after what you have

The survey found 53 per cent of leavers left in the first two years of employment, 10 per cent in the first six months and 27 per cent in the 13-24 month period. The implications of this statistic are far-reaching.

A considerable amount of money has probably been spent on the induction, training and development of these staff members, as well as on accommodating their low productivity rates during their first few months. Even more so, the impact on the dynamics of the team after losing and gaining staff members frequently is considerable, and this ultimately impacts on the overall productivity of the business.

Many employees noted they leave simply for career opportunities and better salaries. These are factors you can influence. A number of businesses may be losing key skills and knowledge that might otherwise have been retained if they re-directed their funds to rewarding for performance, following through on promises of career development (which does not mean promoting a person to a role she or he is ill-prepared for), providing clear expectations and managing performance more closely. The cost of recruiting someone is more than the cost of retaining someone.

So if you believe you have someone who is a potential asset to your business, then consider what you need to do to retain that skill while still developing the individual and the business.

A strong desire for career development came through from the employee responses. Given the nature of the New Zealand market, it is perceived there are limited opportunities for career growth. Small businesses and even some larger businesses who are small-to-mid size on a worldwide stage, need to be creative in how they ensure the job gets done and the customer is happy, while also creating opportunities for staff who can contribute more.

Careers are not always vertical and it is important to be creative in finding ways to challenge and stretch those that have the potential to take businesses to the next level.

Employees want better pay, a better working environment and to be rewarded for their efforts at an individual level, and employers are largely unaware of the strength of these desires. Considering this disparity, it is crucial to get to know your staff at an individual level. Not only should you be looking at current performance against job expectations, and potential to contribute in the future, but also at that staff member's individual level of engagement and alignment versus the impact of the loss of their knowledge and skills. Once you have considered all these factors, you will be able to determine spend to retain and develop these critical resources that will drive success for your business.

Invest in developing people

The survey suggests that organisations' past and future learning and development activity has been and will be reserved for developing leaders.

Employees identify a lack of leadership and internal conflict as the key barriers to better performance in their organisations, and both employers and employees agree that poor performance is ill-managed across the board. This indicates we must focus on building basic people management skills in the coming period. Poor performance has been on the agenda for at least as long as I can remember - why is it something we still avoid or get so wrong? Equity is "the value of an ownership interest". When building organisational equity through people, we should be looking at how we can build value from the talent that works with us directly and indirectly. Learn how to create this value in your organisation, and you'll be surprised at what you can achieve.

Clare Parkes is the managing director, Clarian Human Resources, and a human resources professional with over 19 years of experience in generalist human resources. She is also a member of the Chartered Institute of Personnel and Development (MCIPD) in the United Kingdom.