In today’s competitive business landscape, employee retention is crucial. Following the Covid pandemic, New Zealand employers have faced skill shortages and increased labour costs across most sectors. This highlights the importance of viewing employees as valuable assets rather than easily replaceable components.
Prioritising retention strategies is essential for building a successful business with a well-functioning team and avoiding the costs associated with constant employee turnover.
Key benefits of effective retention strategies include:
- Maintain productivity: keeping staff happy and motivated ensures consistent performance and productivity. Employee departures can strain remaining team members with additional responsibilities.
- Boost morale and loyalty: while high turnover negatively impacts engagement and morale, a positive work environment demonstrates care for employees’ success and inspires loyalty,
- Become an employer of choice: a workplace that values employees and provides development opportunities becomes desirable, attracting talented individuals.
Effective strategies to help retain talent within a business include:
- Health insurance: comprehensive, affordable healthcare protects employees’ physical and financial wellbeing. Customised plans with excellent coverage cater to diverse needs and company sizes. This has become particularly attractive in the current economic climate.
- Retirement savings: well-structured retirement schemes or generous KiwiSaver contributions offer financial security. Providing educational resources for financial planning empowers informed decision making.
- Professional development: encourage continuous learning by integrating growth opportunities into everyday work. Invest in training and upskilling throughout an employee’s tenure.
- Work-life balance: promote balance through remote work options, flexible scheduling, reduced workdays or by discouraging the checking of email after hours, and respect employees’ time during their annual leave.
- Health & wellness: implement initiatives encouraging healthy lifestyles, such as on site gyms, stand-up desks, fitness challenges and nutrition guidance. Provide mental health support through employee assistance programmes, meditation apps and counselling services. Promote open discussions about mental health and train managers to recognise and address related issues.
- Competitive salary & wages: ensure what you are offering your employees relates to market rates – if you are unsure, you can plan roles to suit industry norms.
- Reward & recognition: balance social recognition with monetary rewards. Financial incentives, such as cash, gift cards or paid time off, are common ways to show appreciation. Create opportunities for interdepartmental collaboration to promote teamwork and overall engagement
Focus on creating a positive work environment that demonstrates care and investment in employee success.
Maintaining morale and productivity
When employees are engaged and happy in their work, they are more likely to stay and put in extra effort to help the business succeed. It’s no secret that high staff turnover can negatively impact the engagement and morale of remaining team members. Focus on creating a positive work environment that demonstrates care and investment in employee success.
Effective people strategies not only help retain top talent but also attract quality employees. Creating a work environment where employees are valued, expectations are met and development opportunities are investments in your employer brand all make your company a more desirable place to work, giving you an edge over your competitors.
The right combination of financial, health and lifestyle benefits demonstrates genuine commitment and care for employees. A well designed programme for nurturing staff and retaining positive, motivated employees will lead to a more productive, profitable and sustainable business in the long term. By implementing these strategies, companies can create an environment where employees feel valued, supported and motivated to stay, ultimately contributing to the organisation’s overall success and growth.
