HR & Management

Published

What people want is to be recognised – financial rewards do nothing to reduce staff turnover

3 Mins

Meanwhile, Fitzsimons provided further advice, suggesting that bringing on the fun would prove beneficial to any company. More importantly, however, staff should be able to proudly put on display their feelings in the workplace.

“But often employees feel they can’t do this,” he said. “Why? Because of the way they experience their relationship with their manager. Research suggests that individuals join a company but leave a manager.”

This is largely due to a lack of appreciation. Employees are the lifeblood of your operation, so you want to make taking care of them your highest priority. And showing that you care can come in all shapes and sizes, from giving them their birthdays off and providing a fruit basket, to enabling them to leaving early on Friday’s or discussing a discount for staff at the local gym.

And as they say, improving employee engagement and loyalty is the key to a great corporate culture – one that will reduce the flow of staff leaving your firm.

The 5 keys you need to retain staff

“A stable workforce is hugely important to us, as training people about the way we work and like to treat our customers takes time and effort,” John McMahon, managing director of MCM Net, explained. “People really do become part of our culture and adopt our ethos and customers can feel this when we work with them. By looking after staff and keeping them engaged, you actually cut down on the level of turnover and it’s a cost-saving exercise because the price of recruiting someone from scratch – assuming you can find the right person – is very high.

“What people want is just to be recognised, for someone to say, ‘Yes, you are doing a good job’, for someone to understand their role, to understand what the company hierarchy is, what opportunities there are. It’s much more than simply financial. Most of what I recommend either costs nothing or very little. Rewarding someone financially is a starting point but, in my experience, it’s not their first concern.”

The common theme in all of these ideas? Caring, recognition, rewards and appreciation may be small steps but they can go far.

Elsewhere, columnist Jan Cavelle suggests that firms ignore turnover, have as few staff as possible, and not be afraid to cash out.

Share this story

Four principles from a famous stand-up comedian that could save your business
The lack of females in financial management positions
Send this to a friend