Staff Retention Tips

In the current economic climate, we are seeing an increasing amount of labour turnover, where employees are looking for new opportunities to increase their earnings in order to cover their cost of living. This creates challenges for employers, as it can be very disruptive to lose valued team members. We are going to look at three of the options that employers have to incentivise their staff to stay with them. If you would like more detail on these options, please contact us.

Staff Retention Bonuses
One option that is becoming increasingly more common is for an employer to pay a retention bonus to them. By paying bonuses to loyal team members you might be incentivising them to stay with you rather than look for opportunities elsewhere. Such bonuses can be split and paid over a number of months, with the employee being informed that for those months, they will be getting a share of that bonus. This can be done in place of a permanent salary rise, if it is something that suits the finances of your business at the time. There are of course other factors to consider here, as there would be a need to avoid being discriminatory against the staff that you do not wish to incentivise in this way, so HR advice would be recommended, but this can have an effect on staff retention.

Staff Benefits
Another option is that instead of paying the employees a cash bonus, that you provide other benefits of working for you, such as a health insurance plan, or providing a company car. There would of course be tax burdens to consider here, but creating a situation where employees feel that they cannot necessarily get a better position elsewhere can help you to keep those key members of staff.

Working Environment
Lastly, we would encourage employers to consider the working conditions for their employees, especially if you are struggling to keep your team together. Could there be small upgrades you could make to your staff facilities, or do your staff have any concerns regarding their work environment which you could rectify at a lower cost than that of constantly having to train new team members. Investing in your team in this way can yield better results than you may think.

As mentioned above, if you wish to discuss staff retention with us, we would be happy to assist. Similarly, we do have access to Croner Taxwise and their HR specialists, should you require further support. Please enquire with us if you believe that you may require their services.