Employees are an essential part of all businesses, especially smaller ones. Staff can impact your business in a number of ways, from driving sales, nurturing client relationships, to fostering innovation. But one of the biggest ways they can impact your operations is if they decide to stay or go.
A degree of change in the makeup of a business is natural and healthy, but a high rate of staff turnover comes at a cost – a report from Cendex states that replacing a single employee can take up to 28 weeks and cost over £25k in lost productivity. And in our most recent Capify SME Business Confidence Survey, investing in people was the most frequently cited area of planned investment.
There are several steps you can take to give your company the best chance when it comes to finding the best talent – and keeping them. Here are ten elements to bear in mind:
ATTRACTING TALENT:
1 – Recruitment
An efficient recruitment strategy is obviously the blueprint to attracting the right talent, but clear job descriptions will not only ensure the right people are applying but will also manage expectations about roles, responsibilities and career development.
2 – Networks
Utilise all available networks to spread the news of the opportunity. This may be through social media, owned channels, word of mouth, job sites or even via a traditional recruitment agency. The wider the net is spread, the more likely you’ll be able to attract a diverse and representative pool of candidates.
3 – Reputation and branding
Candidates will be influenced but the reputation of your firm and how its brand measures up in the marketplace and against competitors. Your website will be a key vehicle for compelling testimonials and marketing collateral that gives a sense of what your business stands for – and, crucially, whether it’s a culture and community (however big or small) that appeals to applicants to join.
4 – The details
All elements of software should be kept up to date: operating systems, browsers and applications. Anti-virus and anti-malware software keep the latest threats at bay and a firewall will monitor malicious network traffic.
5 – Next steps
Any opportunities for training, learning or professional growth will be attractive to candidates who want to develop their skills whilst working for you. They might be joining a team that they can aspire to manage or undertake courses that will benefit their career going forwards.
RETAINING TALENT:
1 – Communication
Every employee wants to feel that they’re being listened to and that their feedback is taken on board. Regular catch ups help a business owner or team leader keep in touch with the internal staff dynamics and are a welcome break from the day to day. Concerns can be addressed before developing into issues and everyone will feel like they have a say on the company’s direction. Regular company-wide update emails, forecasts, virtual meetings – even notices pinned up in the kitchen – all help to keep everyone involved.
2 – Culture
A healthy company culture comes from the top. Values need to be lived by management for a welcoming and inclusive environment to thrive. This sense of respect for each other can then be translated into responsibility outside of the business – to the surrounding community in terms of social responsibility initiatives, sustainability drives and proactive contributions to local causes.
3 – Recognition
A great way to foster company culture – beyond informal meetings – is to introduce mechanisms for rewarding great work. These schemes need to be pitched carefully so they work as a motivator for outstanding performance – an accolade that’s achievable for all rather than alienating.
4 – Work-life balance
A healthy approach to work will result in a more efficient and motivated workforce. And the pandemic has completely shifted the dial on employees feeling confident about protecting their personal life from a culture of excessive workloads or unreasonable hours. Business owners can lead by example by trusting colleagues to focus on getting tasks achieved as opposed to clock watching.
5 – Develop
An investment in the growth of your employees will likely save much more money in the long term. Away days, wellness programmes, conferences, workshops and mental health support are just a handful of ways to nurture your staff and build a genuine sense of belonging. They will then feel they have the tools to progress.
Recruiting talent, developing people and managing departures are an integral part of running a business – but a motivated, rewarded and appreciated workforce is more likely to want to stay with you on the journey. Investing in people right from the start through a robust and dynamic recruitment campaign could help mitigate against the substantial costs of a high rate of staff turnover later down the line.
At Capify we offer a range of business loans to help support your business through high and low periods. Our loans can be used for any purpose, including increasing headcount or launching new employee initiatives. Check to see if you’re eligible for one of our loans with our online eligibility checker. Or, if you’d prefer to talk to a member of our team, we’d be happy to guide you through the process. Give us a call today on 0800 151 0980.
