Times are tough for businesses everywhere. Aside from the current job market woes, there are many reasons employees become discontent with their position or workplace. No advancement opportunities, not feeling appreciated, or being underpaid are just a few reasons employees may decide to switch to a different company in the same niche. This discontent often leads to high turnover rates for businesses, which can lead to a cascade of issues.
Retaining key talent is of utmost importance in running a successful business. Happy employees not only boost productivity and workplace morale, but revenue and repeat customers as well. Let's take a look at how to attract and retain key talent for any size of business.
How to Attract and Retain Key Talent
Fortunately, retaining high-quality employees doesn't have to be difficult. There are numerous ways big and small businesses alike can attract, and keep, the employees they are looking for.
- Competitive pay-If you are paying $2 less per hour for the same job at another nearby company, you're not going to attract as many or as qualified applicants. In this market, you must be willing to pay a little extra to attract the type of employees you want.
- Offer unique benefits-This can be as simple as gym memberships or extra time off. Of course, health insurance, sick days, and retirement plans are always good ways to attract quality employees as well.
- Utilize social media for the recruitment process- More and more people are using social media, including job seekers. If businesses want to keep up with current trends, it is in their best interest to do the same. Using social media for recruitment purposes makes it easier for both parties to communicate, job seekers to find interesting jobs, and hiring companies to attract qualified candidates.
- Offer remote positions where applicable-Remote and telejobs have seen a dramatic increase over the past two decades as well. Remote jobs significantly cut down infrastructure expenses and give employees more freedom.
- Be transparent with your mission and values-When businesses are upfront about their goals and values, they are much more likely to attract the type of employees they are looking for. Plus, job seekers will know whether they will be a good fit with a company before they even apply.
- Network and attend industry events-This is a great way to meet others in similar industries, both those hiring and those looking to be hired. Companies can pick up valuable tips and mingle with potential employees.
How to Keep Employees Content
Keeping good employees isn't up to luck. But, business owners don't have to bend over backward to hold on to them either. Here are some great tips on how to retain key talent.
- Foster a good work environment/culture-This can be as simple as encouraging everyone to have positive attitudes and having compassionate managers.
- Appreciate your employees-Showing appreciation to your employees can go a long way. Whether it's a simple verbal affirmation or implementing an “Employee of the Month” award or reward program, this is a simple way to keep top employees working for you.
- Keep employees in the loop-Hold regular meetings to let everyone in your company know the current state and progress of your business. Celebrate milestones together. This helps workers feel integral to the well-being of the company and in turn increases productivity.
- Don't micromanage-Trust in your employees' abilities. You hired them because they are the best. Micromanaging quickly leads to burnout and resentment.
- Don't focus on negatives-Everyone makes mistakes. Instead of dwelling on the bad, focus on learning from it and how you can improve in the future.
- Offer responsibility vs. assigning it-Some people are natural leaders. Others are happy to follow the directions of others. Offer opportunities for extra responsibility. This is a great way to find eligible candidates for positional promotions in the future too.
- Be personable, but professional-When those in management positions are willing to listen to employee concerns or ideas, it garners trust and mutual respect.
Executive Benefits Package
Executive benefits packages, also known as executive compensation packages or pay, are important to retaining upper management positions. These individuals usually have more training and experience in their field, which is why it is extra important to keep them on board. Typical positions that qualify for executive benefits packages include the:
- Managing director
- Company secretary
- Chief financial officer
- Other key company officers
On top of the items included in all employee benefits packages, executive benefits packages include extra perks, usually in the form of noncash privileges. These can include:
- Severance package
- Perquisites (Such as club memberships)
- Short-term and long-term incentives (These are generally performance awards which are often paid for in stock.)
- *Split dollar insurance
The latter is unique from traditional life insurance policies. In split dollar agreements, the cost of “premiums, cash values, and death benefits are split between between two parties.” In the case of executive benefits, employers generally pay part or all of a policy's premiums. However, split dollar agreements sometimes cost less than traditional plans and there are usually fewer restrictions. The employee is still responsible for paying income tax on it annually, but may take tax-free loans and withdrawals from the policy.
For obvious reasons, these packages will vary from company to company, especially from large to small businesses. While small businesses may not be able to provide as many benefits compared to large companies, the ones they can provide will still go a long way in retaining top employees.
Flagstaff, Arizona Financial Services
Executive benefits planning and implementation is just one of the many services we offer. Large and small businesses alike, we help you tailor a custom plan that will fit the goals of your company as well as the needs of your valuable employees. We also offer retirement services, such as 401(k) plans, pensions, and succession planning. Benefits and Financial Strategies can also help you with group benefits, such as medical insurance and disability plans. We know how important your company and employees are to you. We also know it takes a lot of work and dedication to run a successful business, regardless of the size of the company. That is why we take pride in providing businesses and employees alike with the tools they need for a successful future.
Benefits, whether big or small, tangible or not, play an important part in attracting and retaining top talent. Offering competitive wages will always be a key way to interest potential employees in your company. But, benefits and perks, from executive compensation to employee of the month rewards, go a long way in retaining your best employees and keeping them happy.
If you're ready to implement or work on updating executive benefits or employee perks in your office, get in touch with the dedicated professionals of Benefits and Financial. Our knowledgeable team is committed to helping your business run as smoothly as possible and managing all of its financial services in the greater Flagstaff, AZ area.