Retaining top talent: do you follow the Richard Branson or David Brent model?

Written by David Carroll, Director of Candidate Resourcing, Angela Mortimer Recruitment

It is estimated that it costs as much as nine times more to recruit a new employee than to retain an existing one. As an employer, it is therefore in your best interests to ensure that you have strategies in place to encourage talented staff to stay put.

The first step towards reducing staff turnover lies in reviewing your business position. Where do you stand in comparison to your competitors? Are you able to offer better salaries and benefits packages, or is it the less tangible benefits, such as more varied and flexible job descriptions, that attract employees to your organisation? We conduct an annual survey of our candidates (The Blue Book survey), which reveals that 71% would place salary increase in the top three factors when looking for a new role. Only 27% would remain in their current jobs if offered a pay rise, but 61% could be persuaded to stay by improved career progression opportunities.

For some people, small is beautiful, as these companies are generally able to offer less bureaucracy, clearer lines of communication, a more supportive and friendly working environment, and the ability to get involved in the business at all levels. Is there a gap between what you and your competitors have to offer employees, and how do you compensate for any discrepancy?

The most obvious way in which to judge likely staff retention is to find out whether your employees are happy, and what they would like to change about the organisation. Employee satisfaction surveys are quick and easy to implement, can be anonymous and offer strong insight into how your personnel feel about working for you and how likely they are to stay. I would recommend that these are done regularly so that trends and improvements can be tracked. These can be supported by exit interviews, which will give a deeper insight into employee retention problems, but employers should also be aware that these might not reveal the real reasons for leaving.

Employee commitment and loyalty can be measured at a number of levels. At the organisational level, are your companyand#8217;s ethics, values, vision and mission statement inspiring and appealing? If a good employee feels that the companyand#8217;s moral and ethical positions are in line with their own, they are more likely to be proud and enthusiastic team members.

It has been said time and again that people leave leaders not organisations, and this is the next level of employee commitment. Where do your leaders fall on the spectrum in terms of leadership approach? Are they nearer to David Brents paternalism or Richard Bransons more personal and inspirational style? A recent survey revealed that the biggest mistakes leaders make include failing to give appropriate feedback, and not listening and involving their teams in decision-making. Training your leaders to recognise what motivates their subordinates, how this varies from person to person, and how to channel management strategies to the individual, will serve your business well.

The third level of employee commitment is to the team, and it is therefore important that employers include team members in interviews and employment decisions. A good group dynamic will result in strong and committed teams that produce a high standard of work.

Companies with successful staff retention strategies recognise that employees need to feel that their contribution to the organisation is important, and that hard work will be appropriately rewarded. While discretionary bonuses that relate to the profit of the organisation prove quite effective in this regard, our research has shown that most employees would place extra holiday allowance ahead of this. When employees see a direct and reliable relationship between the work they put in and the reward they take out, they are likely to be loyal and effective employees.

Losing talented staff translates into reduced productivity and increased cost for your organisation. The business benefits of redirecting some of these funds into staff retention procedures are therefore readily apparent. Details will vary according to the organisation, but whether these involve offering new pension schemes, flexible working options or team days out, both the organisation and staff will reap the rewards in the long term.

For a copy of the 2006 Blue Book Survey, please visit: