As the war for talent heats up, employers need to be implementing risk management strategies to increase staff retention and
As the war for talent heats up, employers need to be implementing risk management strategies to increase staff retention and reduce the costs associated with exiting employees, according to HR recruitment specialist Majer Recruitment.
Director Suzie Majer says employee turnover is costing companies up to 40 percent of their annual profit with small to medium sized businesses usually the hardest hit.
“In light of the current labour shortage and the escalating cost of employee turnover, employers can no longer afford to avoid addressing staff retention issues,” Majer says.
“The benefits of implementing risk management strategies are varied from minimizing the risk of a critical staff shortage to ensuring businesses are moving forward with the best possible talent.”
According to Majer, employers need to be implementing risk management strategies right from the recruitment stage.
“If you want to be hiring people with skill sets that are in high demand and short supply you need to be doing more than just posting jobs online and cold-calling potential candidates at competitor companies- you need to get more creative,” Majer says.
“You need to work on positioning your company in a way that appeals to the right candidate.”
Majer adds another key area of concern relative to the risk of employee turnover is understanding the cultural differences between Generation Y, X and Baby Boomers.
Operations manager Belinda McLennan says employers should also be aware of employees preferred style of management with many preferring a consultative environment as opposed to an authoritarian one.