The New Year is stretching out ahead of us, but the recruitment storyline isn't changing much. In other words, experts predict it will be just as hard -- if not harder -- to attract and retain the best talent in 2008 as it was in 2007. What may need to change are the employer’s perspectives and plans.
Each year, many people make the same New Year's resolution: to take a good, hard look at where their careers are going. The holidays tend to be a time to reflect on the past and plan for the future. So be warned, your employees are reflecting and planning, and now is the time to pay attention to keeping and reaping top talent.
As we settle into 2008, we should bear in mind a few things about our recruitment and retention efforts that might make this time of year both opportunistic and threatening where staff is concerned.
During January, Frontline Recruitment and other recruitment agencies receive an increase in applications and enquiries from candidates who are interested in opportunities outside their existing organisation.
“As we are all aware, the start of a new year is an opportune time to evaluate career and other life goals, and begin to put in place strategies to achieve them. For many of us an evaluation of our current position and organisation will be a key part of doing this,” said Peter Davis, Managing Director, Frontline Recruitment Group.
So how might these New Year resolutions present an opportunity for recruiters and/or trouble for organisations? For recruiters, the New Year is harvest time. Many recruiters will have planted seeds of interest into the top talent they hope to recruit from other organisations so that their follow-up calls in February connect them to people in the career-change state of mind.
Frontline has a clearly defined policy that prohibits Frontline consultants from approaching candidates directly. Our commitment to no poaching or head hunting is a key value of the organisation and fundamental to our success given that we work right across the industries we recruit in. We partner with our clients and look to maintain a long-term relationship built on trust and respect.
There is however a common practice with some recruiters to poach or headhunt staff and although it may result in finding a candidate for their role, it is a short-term approach that may have dire consequences for the recruiter and the client.
For the Recruiter:
Although they may fill the role, what happens to their reputation with clients if they are prepared to approach candidates that are already employed? There is a chance that the recruiter may do this to these very clients in the future. The recruiter will develop a less than positive reputation for their unethical behaviour and may not get roles listed with that client again.
For the Client
The risk is that the recruiter may target your employees or the competitor may do so in retaliation.
Either way it sets up a dangerous precedent.
Engendering long-term loyalty is key
Organisations, on the other hand, should spend some time in December and January cementing their ties with top talent. This involves more than a Christmas card or even a bonus. Employers should use this time of year to show real appreciation for the hard work of key performers during the past year. Of course, retention initiatives should occur year round, but it doesn't hurt to emphasise and increase those efforts at year-end and during the first months of the New Year, when employers are most vulnerable to losing their best people.
"The cost to the business of losing good staff far outweighs the cost of implementing simple and effective staff retention initiatives," says Davis.
For employers the New Year is not a time to sit back and reflect. It is a time to review your current business plan and to pay particular attention to your employee recruitment and retention strategies.
There is a misconception that the majority of employees leave for financial reasons, 89% of employers think their people leave for more money but statistically only 12 % of employees actually do leave for more money.
A recent study of 19,700 exit interviews completed by the Saratoga Institute, an independent research group identified seven “hidden reasons” employees resign. Here are those reasons, along with Davis’s antidote for each:
1) Job not as expected. This is a prime reason for early departures. Davis says, “Ensure there is a clearly defined job description that is reviewed with each candidate. Give a realistic overview of the business, the culture, values and expectations and ensure these are aligned to the candidates needs.”
2) Job doesn’t fit talents and interests. Davis attributes this to making hasty hiring decisions based on need to fill the role. “We have to move fast in this war for talent” but as John Wooden once said, “Be quick but do not hurry”. Davis advises employers to “hire for job fit. Match their talents to your needs.”
3) Little or no feedback/coaching. Today’s employees, and especially the younger workers, want feedback often.” Give it honestly and often and be specific and you’ll get job commitment, not just compliance”.
4) Little career growth opportunities. The antidote: Provide talent self-management tools and training. Foster a culture of promoting within through the development of succession plans and training opportunities.
5) Feel devalued and unrecognised. Money issues appear here, Davis says but the category also includes even more employees who complained that no one ever said ‘thanks’ on the job or listened to what they had to say. Address the compensation issue with a system that’s fair and understandable. Then listen – and respond – to employee input. “Also, ask yourself ‘how many of my employees get too much recognition?’”
6) Feel overworked and stressed out. This comes from insufficient respect in the organisation for the life-work balance of employees. Institute a “culture of giving” that meets employees’ total needs.
7) Lack of trust or confidence in leaders. Leaders have to understand that they’re there to serve employees’ needs, not the other way around. Develop leaders who care about and nurture their workers, and trust and confidence will develop as well.
It is a commonly accepted fact, that people leave managers more often than they leave jobs. It is the responsibility of organisational leaders to be aware of this and to react to these opportunities.
Unfortunately it is inevitable that employees may make the decision to leave employers at some point in time, if this happens to you, ensure you learn from it and don’t accept it if you don’t want to lose the employee. You need to find out why, conduct exit interviews and find out the real reason they are leaving and try to dissuade them if it is possible. If they still decide to leave you need to ensure you complete objective and independent exit interviews so you can identify why they left so you can then put actions in place to prevent losing your talented employees in the future.
If your organisation is not doing some these things then maybe you need to think about some organisational New Year’s resolutions.
Peter Davis is the Managing Director of Frontline Recruitment Group, a national network of franchised industry specialist recruitment Agencies. The Frontline Recruitment Group was established in 1995 and has expanded at an impressive rate to become one of the Asia Pacific’s leading retail recruitment consultancies. Today, the company continues to set the standard for industry specialist service with a personal touch as it expands into the construction, IT&T, banking & finance, health care and hospitality recruitment sectors.
For further information contact Peter Davis, Managing Director, Frontline Recruitment Group on 02 9347 3844 or national@frgteam.com