How to Retain Employees when the Demand Exceeds Supply?
An age-old managerial truth says it is several times cheaper to retain an employee than to hire a new one. But how to achieve this in a situation when the labour market is much more in favour of employees looking for a new job?
Never Stop Communicating
Communication, just like in so many other areas of our lives, is fundamental. In our part of the world, open conversations about salaries are still not commonplace, but they can often be the key to retaining a smart employee and nipping any sources of dissatisfaction in the bud.
In this case, it is not so much about meeting all of the employee's requirements. On the contrary, an open discussion in which you also talk about the company's capabilities and boundaries, and the reasons why you may not be able to meet all of the employee's requirements, can ultimately lead to the establishment of honest communication and the creation of mutual trust that will keep the person with the company.
It Is Not Just Money
Salary is only one component of what you as a manager can provide to your employees. You also have a number of non-financial benefits that, when comparing similar job offers, can ultimately make the difference between keeping or losing a valuable employee.
You have a variety of recreation, sports and fund allowances on hand. Not to be underestimated is also the offer of various company parties or team building events - but the key is to know your employee and to be able to offer them what they (and their personality) really starves for.
Offer Real Flexibility
Home-office is just one of the flexibility options, which we have enjoyed to the max in recent months. The real competitive advantage can be real flexibility - not only the (home)office one, but also time flexibility - the most flexible possible arrival and departure times.
Yet looming over all the points mentioned is one that separates the good managers from the best - overview. The ideal manager knows their employees, perceives their work and knows when it is time for a short encouragement and when a longer interview or a review of salary conditions is in order. It is this kind of a long-term and systematic effort that then bears fruit in times like these, when the market is skewed to the employees' side.