The people you employ are, without doubt, your organization’s most important asset. Within your staff base, different individuals will fulfill different roles and, as such, have unique skills and an independent approach to their jobs. If any staff member becomes unhappy at any point, then they are at liberty to resign and move on and this poses an expensive problem for businesses the world over. Replacing staff is costly and time-consuming, so it’s sensible to make your business attractive enough that employees do not want to leave.
Retaining employees gives your company a competitive advantage because it saves money on processes like recruitment and training. Conversely, through the inevitable loss of productivity that comes with losing staff, it is estimated that the cost of employee turnover can range from 40-400% of an employee’s annual salary.
The best route to retaining staff is to maintain employee engagement using HR processes and incentives to create a positive company culture. Loyalty programs are straightforward to set up and run, and provide benefits for both employer and employee; staff have additional perks to work towards and businesses see an upturn in productivity and staff retention.
The offer of incentives to staff is a popular choice because it allows people to earn bonuses, be they monetary or tangible, for doing a good job, which in turn makes them feel valued. Presenting a congratulatory award in return for high performance demonstrates recognition and appreciation, making that employee feel that their efforts are worthwhile. We all want to have an impact at work and feel that our hard work makes a difference, so taking the time to recognize this will lead to job satisfaction and staff that want to stick around and do their best for your organization.
It is a natural reaction to work harder and smarter when you know that there is a reward available in exchange for your achievements. This added motivation leads to increased efficiency, an upturn in productivity and ultimately, improved sales and profits. Staff will achieve not only for themselves, but for the business as well.
In terms of staff retention, management teams will always want to hang on to talented employees for as long as possible. A high staff turnover not only affects the financials, but also negatively impacts morale and can trigger further resignations if an unfavourable atmosphere persists. Productivity can also be affected, as experienced employees are familiar with processes and requirements and can get the job done quickly and efficiently, whereas newer members need training and take longer to get things done. Offering awards for staff to strive for can help to prevent this scenario from arising in the first place.
To see significant results, the rewards on offer need to be desirable to your staff. This can be achieved through personalization, knowing your staff well and matching rewards to individuals. Alternatively, you can go for the ‘wow factor’ by offering exciting awards like a vacation, be it a weekend away or an exotic destination. Good loyalty schemes will be adaptable and allow you to tailor rewards to your company in terms of budget and your culture.
Personalizing rewards to individuals can be especially effective, as the recognized staff member will realize that their manager has taken time to think about them and their preferences. This approach encourages loyalty and goodwill, making staff feel valued and keen to work their way up the ranks rather than looking for opportunities outside the organization. In the same vein, providing a selection of rewards that employees can choose from is also a successful approach, as it enhances the desirability of what is on offer.
Recognition and loyalty schemes today are quick and easy to implement, with bespoke platforms available to suit your business and its unique processes. Good programs can operate as a transparent 365 platform, enabling management to monitor staff progression and involvement, and allowing employees easy access to view their status or to choose rewards. Getting an employee loyalty initiative going really is a simple step towards improved staff retention and satisfied employees.