An effective employee retention strategy is becoming increasingly important in china’s volatile job market, where a shrinking workforce and aging demography is driving up the competition for talent.
The best employee retention techniques include a mixture of both external benefits like salary and bonuses and internal benefits like work-life balance, training and mentorship, and career growth prospects.
Business leaders should conduct an HR audit, identify your company’s competitive edge, optimize individual roles and recognize good work.
The total compensation model
To motivate employees to stay at the company it is often said that the best retention strategy is one that adopts a “total compensation model.”
Total compensation is a concept whereby your enterprise culture, corporation strategy and HR strategy are such that they are able to engage and satisfy current employees and stimulate continual business growth and excellence.
In order to apply this principle, it is first important to understand the most common reasons for dissatisfaction among employees.
Typically, there are four overarching reasons why an employee leaves a company, these are: unmet expectations, breakdown of trust, feeling undervalued and lack of satisfaction. Total compensation encourages the use of various external and internal benefits in order to optimize the value employees bring to a company.
Tips for HR managers
It is important to consider both the internal and external motivators for an employee in a workplace when determining any HR strategy. Here we break it down into four principles employers should use to guide them in creating an effective HR retention strategy.
I. Conduct an internal HR audit
First, HR managers should review their existing policies, procedures, and documents to ensure that they comply with the most recent legal and regulatory developments and align with their broader HR strategy and enterprise culture.
A questionnaire can often be a useful way to gather information that is not available and can be vital in gaining insights that inform key decisions. This can assist in finding the root causes of employee discontent, gaps in the operation of a company and improvements that can be made within.
II. Identify your competitive edge
Next, it is important to consider where your business sits among your industry competitors. HR managers are advised to conduct a salary benchmark of similar roles in the industry and ensure that they are competitive.
In addition to this, it is important to recognize the strengths of your company in the market and utilize this in attracting talented employees – whether by offering a flexible and independent work style, competitive salary, company benefits, career advancement and/or training.
III. Optimize individual roles
Once you have evaluated the company’s overall HR strategy, it is important to analyze individual roles and positions. Conducting a position evaluation is a good way to improve position descriptions, which can help optimize the search for quality employees and will clearly pinpoint the expectations, rewards and benefits distribution of the role.
A thorough evaluation will consider the ways to effectively measure the position’s value, how to provide equitable internal pay to employees and ways it can optimize an employee’s impact, communication, innovation and knowledge in the performance of the role.
IV. Active recognition
Finally, it is important to ensure there is a system in place where there is active recognition of employees.
Given the volatility of the job market, agile goal-setting is an important variation on traditional performance criteria as it ensures that key priorities are always kept at the forefront and goals are adjustable at any given time.
Some reliable and proven methods that employers can adopt to establish practical goals, include KPI (Key Performance Indicators), OKR (Objectives and Key Results) and the SMART (Specific, Measurable, Achievable, Realistic and Timely) principle.
These should be complimented by a clear job progression ladder and salary variation for each level – which can form an important motivator for employees and is an invaluable way for management to communicate. expectations.
This article was first published by China Briefing, which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, India, and Russia. Readers may write email@example.com for more support.