2 November 2023

Staff retention is a critical aspect of any successful organisation. High turnover rates can be costly and disruptive; leading to decreased productivity, increased recruitment expenses, and a loss of important knowledge. To maintain a stable and productive workforce, businesses must implement effective staff retention strategies.

Why is staff retention important?

Cash in your pocket: Replacing employees can make a big dent in your bottom line in terms of recruitment expenses, training, and waiting for new hires to reach their potential

Knowledge retention: Long-term employees have wisdom that money can’t buy. Losing this knowledge can hinder a company’s ability to adapt and innovate. It often takes considerable time for new team members to develop the same level of knowledge and efficiency

Team harmony: A revolving door of new faces disrupts the rhythm of your workplace, leading to confusion and lower productivity. Consistent staff members are more likely to work cohesively and efficiently as a team

Company culture: High turnover can negatively impact company culture, leading to decreased morale among remaining employees and a sense of instability

Job market wars: Talented people have options which makes retaining top talent more challenging. Foster a culture of employee engagement through open communication, feedback, and recognition programmes. Encourage employees to voice concerns and ideas. If your team are talking openly to you, you have more opportunity to keep them focussed where they are, making the other options less desirable

Our top seven tips to keep your employees

  1. Pay up: Employees may leave if they feel they are not adequately compensated for their skills and contributions. Regularly review and adjust salaries to remain competitive in the job market. Consider offering performance-based bonuses and benefits like healthcare or gym memberships
  2. Room to grow: Many employees want to climb the ladder. A lack of career advancement opportunities can lead to employee dissatisfaction and departure. Provide employees with opportunities for skill development and advancement, and encourage ongoing training and mentorship programs
  3. Poor work-life balance: Employees value work-life balance; organisations that neglect this aspect risk losing staff to burnout or better-balanced opportunities. Promote work-life balance by offering flexible scheduling, remote work options, and wellness initiatives.
  4. Recognition and rewards: Recognise and reward employees for their hard work and achievements. Employee recognition programmes, such as “Employee of the Month” or performance bonuses, can boost morale
  5. Strong leadership: Invest in effective leadership and management training to ensure that employees have supportive and inspiring supervisors. Train your managers to be leaders. Great bosses make for happy employees
  6. Employee feedback: Conduct regular employee surveys and feedback sessions to gauge job satisfaction and identify areas for improvement. Encourage open communication, feedback, and create an environment where employees feel valued
  7. Exit interviews: When the inevitable departures do happen, make sure you are taking lessons from it. Conduct exit interviews to gain insights into why employees leave. Use this information to make necessary improvements in your retention strategies

In today’s competitive job market, staff retention is crucial for an organisation’s success. By investing in competitive compensation, career development, work-life balance, and fostering an engaging workplace culture, businesses can significantly reduce turnover rates and retain their valuable talent. A satisfied and committed workforce is more productive and contributes to a positive company culture that attracts new talent and supports long-term success.

Talk to our experts

If you would like to explore how our Business Advisory services could help your team reach its full potential and retain staff members, get in touch.

Nexia is one of New Zealand’s best accounting and business advisory firms with locations in Auckland, Hawke’s Bay and Christchurch. We can help you regardless of your location through working remotely or connecting you with our extensive global accounting network, as members of Nexia International.

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