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How to retain employees even if you can’t offer a competitive average salary
Despite prevailing opinion, attracting and retaining skilled talent doesn’t always rely on offering a high salary. For many growing organisations, employee retention comes down to providing employees with a positive, flexible, and balanced working environment.
We’ve collated proven techniques to retain employees even if your average salary benchmark is lower than the industry standard.
Foster a positive working environment
A good culture is especially important in a modern workplace, especially for younger workers. According to a study by Robert Walters, 50% of millennials say a strong culture and a good reputation are the most important considerations when choosing an employer.
For businesses, building a positive environment means adopting an ‘open-door’ policy where free communication and discussion is encouraged. Implementing initiatives for recognition, team building, and wellbeing are also critical to creating a comfortable and valued working environment.
Allow flexible working practices
A balance between work life and personal time is important to a whopping 95% of employees, according to a recent study by PwC. Workers also want to be able to take advantage of new technological capabilities to work from anywhere, at any time.
Considering this, giving employees the opportunity to work flexibly (by working from home or working flexible hours, for example) serves as a significant non-financial incentive for many professionals.
Provide career growth opportunities
Career progression is the top consideration for younger candidates when searching for employment – coming ahead of a competitive salary in second place – according to the same study by PwC. Similarly, workers want assurance that they will have the ability to grow their skill set through on-the-job training and mentoring.
As such, businesses that can’t offer significant financial incentives should develop systems for training and upskilling of employees to not only attract new talent but also retain existing workers.
Focus on recognition & reward
It’s no surprise that employees want to feel that their work is meaningful and that their achievements are recognised. The 2017 Trends in Global Employee Engagement report found that reward and recognition initiatives by APAC companies result in the highest level of employee engagement – exceeding financial incentives.
With this in mind, businesses should look to employee award initiatives and bonuses for quantifiable achievements (instead of blanket salary increases) to assure employees that their work is valued.
Want to find skilled and loyal talent for your organisation? Get in touch with our recruitment consultants.