Many businesses focus a lot of their energy on recruiting the right people. It is essential to have the right staff for the key roles in any organisation, but sometimes, with the emphasis on recruitment, businesses forget about staff retention.
If the focus is too much on recruitment rather than retention, then the risk is that the lifecycle of a valued employee is shortened, because they do not feel there is enough to keep them in the company.
Motivating and Incentivising
Research from American Express indicates that most American SMEs reward their employees, and that half of these do so to motivate their staff.
In turn, this elicits a positive response from workers, with:
- nine out of ten of them saying that they had received some sort of gift from an employer, and half of them saying this made them feel truly valued
- 44% felt their company was rewarding them
- a third agreeing that rewards made them feel motivated to work harder
When it comes to staff retention, SMEs might feel at a disadvantage when faced with the win pulls of bigger businesses offering tempting packages on one hand; and the entrepreneurial lure of the gig economy on the other.
However, SMEs also have inherent advantages over their larger competitors.
“Smaller companies tend to have a better starting point for familiarity with their staff, which provides a good foundation for building a reward-based culture”
Retaining the Talent
“Rewarding staff should be part of an overall culture of engagement and open communication,” suggests Chris. “This should include things like regular feedback, constructive criticism, performance management and clear career progression.”
Employees derive value from engagement, from recognition that they are an important asset.
“Just as your employees are an asset, so are your rewards”
“How companies structure rewards can vary, from monthly incentives for high-performing employees to rewarding long-standing employees,” explains Chris. “Even the smallest gift, however, can contribute to the spread of a positive workplace culture.”
“Rewards are a benefit that will attract and retain staff. At the same time, be sure to personally thank the people you’re rewarding, to maintain that crucial personal element,” Chris concludes.