May 2005
There is an old saying that good staff are hard to find… but these days they are even harder to replace.
Over the past decade, successful organisations have learnt that the management of people issues is just as important as managing the value of the company’s assets, increasing profit and shareholder value. The way in which an organisation manages its people directly correlates to the success, or otherwise, of its business. Studies have shown that it costs an organisation two and a half times a person’s salary if that person leaves and the company is required to recruit and replace them. The financial loss can fade into the background when compared to the loss of an employee’s intellectual property, knowledge and skill.
A national Mercer Human Resource Consulting survey of Australia at work found that employees who believe they have a long term future with their organisation are more committed.
“As employees realise what they are looking for in an employer, employee benefits such as career development, work/life balance and flexibility play a significant role in attracting potential candidates,” says Mr Stephen McClymont, PricewaterhouseCoopers Human Resource Services director. “People seek a career they love, balanced with the lifestyle they want.”
So what can organisations do to differentiate themselves from their competitors? How do successful businesses attract and retain talented people?
Employer of choice
Several key factors which identify an organisation to be an employer of choice:
The organisation understands the importance of its people and the role they play in achieving the organisation’s business goals.
These organisations clearly recognise the correlation between their people and their organisation’s ability to achieve their business goals. In many cases, there exists a culture where goals are developed through consultation with employees.
The organisation plays an active role in developing and managing the career of their people.
Employees are no longer just looking for a job, rather they are looking for a career. “Organisations that focus on coaching and consistently encourage further development are clearly differentiated,” notes Mr McClymont. “In addition, development of clear career paths, opportunities to move to different divisions and experience various roles are also important.”
The organisation has a flexible approach to working arrangements.
Increasingly, we are seeing a significant shift away from the traditional nine to five, five day working week. Whether it be hours, days or working locations, employers must become more understanding of the need to be flexible. Organisations that recognise the need for flexibility and adapt policies suitable to their unique working environments are highly regarded by potential employees.
Some key benefits of being an employer of choice include the ability to differentiate your organisation from competitors. In addition, employers of choice generally find they have a much larger pool of candidates to choose from and an overall higher quality standard of candidates.
High performing companies
So what do high performing companies do to ensure that valuable employees remain and potential candidates are attracted to the organisation?
Ensuring a culture of understanding, flexibility and open communication exists and is practiced throughout the organisation is a key to retaining and attracting employees.
“Organisations should consider undertaking a review of the type of benefits they provide to their employees and determine their suitability,” suggests Mr McClymont. “In many cases, employees can provide valuable input given their first-hand experience.
“Benefits offered by some organisations include improvement in conditions of the working environment, facilities available at the location of work, motor vehicles and health programs.”
Too often companies make the mistake of being too short term in focus and find themselves lacking resources during a period of market expansion. People issues should be considered when business plans are developed, giving consideration to issues such as resources for future work commitments and succession planning.
Happy staff and increased productivity - what more could you want?
With increasing competition among organisations for talented employees, it’s important to recognise the importance of staff and people related issues.
“It’s never too late to start and there are many ways organisations can differentiate themselves,” says Mr McClymont.
When it comes down to it, candidates select employers they believe will give them the greatest chance of succeeding. Will it be you… or your competitor?
For further information, please complete the following form, or contact:
Stephen McClymont, Director
Human Resource Services
Phone: + 61 8 9238 3336
