At the end of May 2017 unemployment in the UK dropped to 4.5%, hitting its lowest mark since 1971. While this is great news for the economy, it also generates important challenges for employers and HR managers to face. According to an article published by Forbes, the greatest challenge faced by HR departmentsthis year relates to employee retention.
As unemployment falls and companies begin to concentrate their efforts on recruiting new members of staff, the concern is that they unknowingly forget to pay the necessary attention to existing members of staff, thus creating a cycle in which employees don’t stay at any one company for long. When turnover is high it can become difficult to make progress and companies begin to suffer from a decrease in quality and efficiency.
Human Capital Management Software
One way of facing this challenge head on is to invest in solutions designed to help free up time and organise priorities. This is why many global companies turn to human capital management software solutions. These resources provide HR specialists with the administrative, financial and communication support required to keep employees happy and motivated at work.
The appropriate application of budget can also play a positive role in the retention of employees. According to the 2016 SHRM and Globoforce Employee Recognition Survey, those companies who reserved at least 1% of their annual payroll budgets to fund values-based recognition programs were more likely to benefit from an increase in employee retention. It is the responsibility of the HR department to manage finances to employee advantage and that includes investing in professional development.
According to an article published by Forbes, a decent salary matched with the right level of responsibility isn’t enough to make a job desirable in the long-term. Even health insurance and retirement plans, although important considerations, are not sufficient motivators to improve employee retention. Travel, on the other hand, is fast becoming an exciting, novel perkto add to the list of employee benefits and one that many global companies should consider incorporating into their employee programs.
Regular travel has the power to boost morale, relieve stress and broaden perspectives as a result of being exposed to new cultures. Travel perks can be offered as part of the employee’s work-related responsibilities. They can be offered in the form of paid vacations or as travel package rewards resulting from high performance on the job. Many global companies are now also offering a flexible time off system, allowing employees to take more days off and to have more control over when they use their vacation days.
However you choose to do it, it’s time to put plans in place for keeping employees interested and motivated. Remember that the greatest challenge faced by HR departments at present isn’t just the appointment of great new talent, but also being able to hold onto it for the long-term.