MHR Module 2
MHR Module 2
MHR Module 2
MODULE 2
RECRUITMENT, SELECTION AND RETENTION
10 Hours
Purpose and Importance of Recruitment – Sources of Recruitment – Selection Process –
Selection Techniques – Selection Errors – Orientation, Induction, On boarding and Placement.
Retention – managing Attrition, Retention Strategies.
On the other hand, job seekers are seeking organisations that might employ them. Recruitment is
a linking activity that connects people who are employed and those who are looking for a job. In
simple terms, recruiting is the process of identifying sources from which potential workers may
be chosen. Higher productivity, better pay, good morale, lower labour turnover, and a better
reputation are all benefits of a scientific recruitment process. It encourages people to apply for
employment, which is a positive process.
5. Cost-Effective
It focuses on minimizing total costs and time spent on finding suitable employees. Recruitment is
a well-organized and methodical approach in which a large number of people are given a
detailed description of a job opening. A good job description attracts a large number of people at
a lower cost.
SOURCES OF RECRUITMENT
Whenever there is a vacancy in the organization, generally it is to be filled. To make the
candidate available for filling those vacancies, their selection procedure and placement on a
proper job comes under the purview of recruitment.
As soon as the available vacancies are known, they are advertised through different media and
accordingly the applications are collected for the vacant posts. A group of candidates interested
in doing the job and are eligible to do, it is created through recruitment.
It is an operative function of human resource management coming under the managerial function
called organizing. In the words of Edwin Flippo, ‘recruitment is the process of searching for
prospective employees and stimulating them to apply for jobs in the organisation’.
In short, it involves attracting and obtaining as many applications as possible from eligible job
seekers.
Sources of Recruitment:
The eligible and suitable candidates required for a particular job are available through various
sources. These sources can be divided into two categories, as shown in Figure 5.5.
2. Retirements:
The retired employees may be given the extension in their service in case of non-availability of
suitable candidates for the post.
3. Former employees:
Former employees who had performed well during their tenure may be called back, and higher
wages and incentives can be paid to them.
4. Transfer:
Employees may be transferred from one department to another wherever the post becomes
vacant.
5. Internal advertisement:
The existing employees may be interested in taking up the vacant jobs. As they are working in
the company since long time, they know about the specification and description of the vacant
job. For their benefit, the advertisement within the company is circulated so that the employees
will be intimated.
4. Training cost is saved as the employees already know about the nature of job to be performed.
3. It brings the morale down of employees who do not get promotion or selected.
2. Campus interviews:
It is the best possible method for companies to select students from various educational
institutions. It is easy and economical. The company officials personally visit various institutes
and select students eligible for a particular post through interviews. Students get a good
opportunity to prove themselves and get selected for a good job.
3. Placement agencies:
A databank of candidates is sent to organizations for their selection purpose and agencies get
commission in return.
4. Employment exchange:
People register themselves with government employment exchanges with their personal details.
According to the needs and request of the organization, the candidates are sent for interviews.
5. Walk in interviews:
These interviews are declared by companies on the specific day and time and conducted for
selection.
6. E-recruitment:
Various sites such as jobs.com, naukri.com, and monster.com are the available electronic sites on
which candidates upload their resume and seek the jobs.
7. Competitors:
By offering better terms and conditions of service, the human resource managers try to get the
employees working in the competitor’s organization.
2. The best selection is possible as a large number of candidates apply for the job.
1. Skilled and ambitious employees may switch the job more frequently.
3. It increases the cost as advertisement is to be given through press and training facilities to be
provided for new candidates.
SELECTION PROCESS
Selection is a long and tedious process. Every candidate has to pass through several hurdles
before he/she can get selected for job. The whole exercise might be called a rejection exercise
but it has a positive outcome in terms of the appropriate personnel selected
Selection process involves the following steps:
(i) Job knowledge tests – These tests are used to judge proficiency in operating mechanical
equipment, dictating, typing, computer applications etc. These tests can be written and practical
both. These tests are good in selecting typists, stenographers with supervisor etc.
(ii) Work sample tests – In this test the applicant is given a piece of work to perform in a
stipulated time. His performance will judge whether he can be picked up for the job.
(iii) Personality tests – These tests judge the psychological makeup of any person. These tests
check a person’s motivational level, emotions, integrity, sympathy, sensitivity etc. These traits in
an individual provide the manager with an overall picture of his personality.
(iv) Simulation tests – In this test many situations which an employer will have to face in the
job will be duplicate and the candidate will be asked to face the problem. These tests are
generally used for recruiting managers in the organization.
Step 4 – Create benchmark answers and a rating scale for each – An ideal answer may be
given the rating of 5 on a 5-point scale whereas, an average answer 3 marks and a poor one just 0
mark.
Step 5 – Appoint the interview panel and conduct interviews – Employers conduct interview
generally with a panel consisting of talented and skilful interviewers from the company. They
review the answers and rank the candidate accordingly. They indicate where the answers of the
candidate fall marginally short of bench mark and where they are ideal or good. They may
follow-up the panel discussion with interview for some good candidates.
SELECTION TECHNIQUES
The process of hiring a new employee is harsh and resource-intensive. Many competing interests
are vying for the attention of every good candidate. At the same time, your organization must
identify high-quality candidates from a sea of less qualified applicants.
Thus, your company must establish a process whereby you can filter applicants, identify the most
promising candidates, and assess them accurately. Only then can you be assured that you’re
hiring the best available candidates for any given role.
Your employee selection process needs to have several qualities.
There are many tools and resources available for use in the candidate selection process. You
might, for example, hire a contract recruiter to handle your recruitment. You might use a heavily
automated applicant tracking system to do resume filtering. You might invest in varying
channels for marketing your job posting. And, of course, your employees can be a resource
through referrals and recommendations.
Because the employee selection process is so critical to business success, we’ve compiled a list
of 13 of the most valuable techniques, with an analysis of their pros and cons—choosing which
of these to implement and when is vital.
1: Cognitive Ability Assessment
Cognitive assessments test the candidate’s mental acuity and ability to learn. They can include
anything from logic tests to pattern recognition and more. They are common after studies have
shown that cognitive ability is one of the top influencing factors in job performance.
“Knowing a candidate’s cognitive ability is important for jobs at every level in all kinds of
industries. It can predict how well a candidate will pick up on the training materials, how they
will understand instructions, how efficiently they’ll be able to solve problems throughout the
workday, and how easily communication will come to them.” – Harver.
The pros of this method include the correlation between assessment and performance and the
ease of automatically administering and judging a well-designed test.
On the other hand, cognitive assessments can have a suppressive effect on candidates who don’t
feel the test is worth the role. They can also be biased and introduce adverse impacts in your
hiring process.
2: Job/Role Knowledge Assessment
Like cognitive assessments, a job knowledge assessment is a test designed to evaluate the
candidate’s knowledge of the role. These tests need to be tailored to the position. For example,
when hiring a developer, you might ask questions about the programming language, system
architecture, or software your company uses.
These are excellent tests to evaluate the skills and knowledge of a given candidate. However,
they must be tailored to the role, which means large companies may need dozens (if not
hundreds) of different tests for different positions at different levels within the organization.
3: Personality Assessments
Personality assessments are tests administered to evaluate a candidate’s character and traits.
These tend to be most common for entry-level roles, where skills are trainable, and experience is
not required, but personality and character are more critical.
Personality assessments are often too generic and don’t correctly assess traits relevant to the role.
Also, similar to cognitive assessments, they can introduce adverse impacts in your hiring
process. However, when used properly, they can successfully filter for high-quality candidates.
4: Learning Agility Assessments
Learning agility is the ability of an individual to learn, unlearn, and relearn tasks and skills in an
ever-changing digital world. It is becoming more and more critical as the development of
software, technology, and tools accelerates. These tests assess how capable a candidate is of
adapting to changing situations and learning the skills necessary to succeed without hand-
holding.
While these assessments can be very potent, they are most relevant in fast-paced industries and
roles and less so in low-level positions or slow-moving organizations. They can also be highly
challenging to develop and administer in a way that gets tangible results.
Experience alone is not enough. Performance must be considered. Additionally, this kind of
analysis works best on mid and high-level roles. Entry-level roles typically don’t require
previous experience, so filtering for it can eliminate good candidates.
6: Sample Assignments
In many roles, the best way to determine how well a candidate can perform in your position is by
asking them to perform. A developer might be given a task to create an app or fix a bug, or a
writer might be asked to write a sample piece. Perhaps a sales agent is tasked with selling to an
interviewer. These allow you to see first-hand how the employee performs in the tasks you’ll be
asking them to perform.
Many companies use uncompensated sample work as a way to get free labour. Sample work can,
however, suppress certain applicants, particularly if they distrust your company. Also, when
administered too early or take too long, candidates may choose to look elsewhere rather than
jump the hurdle.
7: Structured Interviews
DIVYA H N (Asst Prof) , Department of MBA, SIMS Page 12
MANAGING HUMAN RESOURCES 2.3
In many organizations, the interview process is informal, a free-form assessment from a skilled
interviewer, manager, or HR representative meant to get an impression of the candidate in
person. Unfortunately, these are unscientific and rarely effective.
Meanwhile, a structured interview uses the same set of questions, the same structure, the same
format for each candidate who reaches the interview stage. This process is graded
objectively using a scorecard for a more scientific and rigorous evaluation of each candidate.
The primary drawback to a physical assessment is that the test can be deemed discriminatory if
the fitness requirements are not truly necessary.
9: Peer Interviews
Peer interviews are a style of an interview conducted, not by a department head or HR manager,
but by the team the prospective employee would be working with.
Peer interviews can give deeper insights into how well a candidate fits with company culture,
how well they know their role rather than studying for an interview and assessment, and how
well they mesh with the others in the office.
“Potential pitfalls are that it’s necessary to train the interviewers to be sure they ask the right
questions. It can also be distracting, sometimes getting in the way of daily responsibilities.” –
Harver.
Of critical importance is ensuring that your interviewers do not ask the wrong questions. There
are many protected categories of information, both on a federal level and at various state and
local levels. Asking inappropriate questions and using the answers to make a hiring decision can
open your company up to legal action.
10: Reference Checks
Some view the requirements for candidates to list personal and professional references as part of
their application as outdated. In a vast majority of cases, the references are never contacted.
However, it may be worthwhile to use references as part of your candidate screening process.
The trick to talking to references is asking open-ended questions that encourage the contact to
speak at length. You can use the answers to better judge the skills, character, and potential
pitfalls of the candidate.
The primary downside is that references are often less professional and less put-together than
candidates attending interviews. They may also be biased, as with friends and family references,
and may not accurately represent the candidate. And, of course, interviewing references is time-
consuming, meaning it should be limited to only your most likely candidates.
11: Temp-To-Hire Contracts
One way to assess whether or not a potential employee can do the job is to hire them to do the
job. While this may sound counter-intuitive, temporary contracts allow you to put the candidate
in the deep end immediately, with the understanding that their contract will be renewed or
converted into a full hire if they perform adequately. Since the risk is somewhat lower than a full
hire and subsequent termination of a poor choice employee, temporary contracts allow more
flexibility to assess a candidate over a more extended period.
The primary downside is that you will still need to process some level of assessment before
hiring for a temporary contract. Additionally, the contract period necessitates a lengthy
evaluation period before deciding. Some smaller and more agile companies will not want to
invest in these things.
12: Sample/Portfolio Evaluation
Many roles, such as designers, artists, developers, writers, and other object-oriented and creative
careers, find employees developing portfolios of their past work. These portfolios include
samples designed or tailored to be relevant to the company, niche, or role the applicant is
interviewing for. Thus, it can be representative of the quality of work done by the candidate.
Reviewing their portfolio, analysing the quality of their work with the help of someone
technically proficient in the same work, and making a judgment based on past work is a great
way to assess a candidate.
However, this type of assessment only works for roles where the employee is likely to produce
samples, though some positions can be flexible with case studies and reports on past work. Some
roles, however, have no way to distill past work into a portfolio or sample.
13: Automated Filtering
Modern software offers companies the option to use machine learning to scan through resumes,
applications, and other relevant documentation to evaluate and filter a candidate pool
automatically.
This option is in its relative infancy as a technology. As such, it has many drawbacks. It can be
tricked if the applicant knows what keywords to use in their documentation. It can be biased –
whether inherently by the training data or implicitly by past hiring practices. It also offers little
rationale or nuance in its decisions, as explaining the inner workings of an algorithm is complex.
For those reasons, automated filtering is best left for “unskilled” labor positions, entry-level
positions, and bulk positions where nuance isn’t as important.
Properly Evaluating Candidates
The complete process of evaluating candidates varies depending on the situation, role, company,
niche, organization, budget, technology, and more. Every company must develop its process
using the tools available to them, internally and externally, within their budget.
“Properly identifying and implementing formal assessment methods to select employees is one
of the more complex areas for HR professionals to learn about and understand. This is because
understanding selection testing requires knowledge of statistics, measurement issues and legal
issues relevant to testing.” – SHRM Effective Practice Guidelines.
SELECTION ERRORS
If you’re having trouble placing candidates or your recruitment process isn’t running as smoothly
as you would have hoped, it may be time to take a step back and assess what exactly is going
wrong. Sometimes even the smallest of changes can make a world of difference, so it’s worth
taking the time to identify areas for improvement.
There are a few common blunders that recruiters commonly make, which can result in costly
hiring mistakes, failure to capture the attention of the best employees, and a negative reputation
as a recruiter and organization. Here are a handful of some of the top recruiter mistakes:
1) A lack of organization
Planning and organization are critical to the fluidity of your hiring process and is often
overlooked by recruiters. Failing to plan can create problems such as overspending, lengthy
hiring processes, making hasty hiring decisions, and providing a poor candidate experience.
Having a clear plan and hiring strategy in place will help you stay on track and within a set time
frame.
2) Poor communication
This is one of the top pet peeves that candidates have about recruiters. The candidate
experience can have a huge impact on your employer brand and keeping them in the dark about
the progress of their application doesn’t reflect well on the organization. It’s important to keep
the candidate in the loop at all stages of the process and all candidates who have been
interviewed deserve to receive feedback, even if you do not wish to offer them the role.
ORIENTATION
DEFINITION OF ORIENTATION
Employee orientation is about introducing new employees to the workplace which includes their
job responsibilities, their team members, departments and so on. The idea is to make them feel at
home, make them aware of the company policies and familiarize them with the new role and
people they will work with.
Orientation requires cooperation between individuals in the HR unit and other managers and
supervisors. In a small organization without an HR department, such as a machine shop, the new
employee’s supervisor or manager has to take the total responsibility for orientation. In large
organizations, managers and supervisors, as well as the HR department, should work as a team in
employee orientation.
PURPOSES OF ORIENTATION
Employers have to realize that orientation isn't just a nice gesture put on by the organization. It
serves as an important element of the recruitment and retention process. Some key purposes are:
To Reduce Startup Costs Proper orientation can help the employee get "up to speed" much more
quickly, thereby reducing the costs associated with learning the job.
To Reduce Anxiety Any employee, when put into a new, strange situation, will experience
anxiety that can impede his or her ability to learn to do the job. Proper orientation helps to reduce
anxiety that results from entering into an unknown situation, and helps provide guidelines or
behavior and conduct, so the employee doesn't have to experience the stress of guessing.
Employee turnover increases as employees feel they are not valued, or are put in positions where
they can't possibly do their jobs. Orientation shows that the organization values the employee,
and helps provide the tools necessary for succeeding in the job.
Simply put, the better the initial orientation, the less likely supervisors and co-workers will have
to spend time teaching the employee.
To Develop Realistic Job Expectations, Positive Attitudes and Job Satisfaction It is important
that employees learn as soon as possible what is expected of them, and what to expect from
others, in addition to learning about the values and attitudes of the organization. While people
DIVYA H N (Asst Prof) , Department of MBA, SIMS Page 21
MANAGING HUMAN RESOURCES 2.3
can learn from experience, they will make many mistakes that are unnecessary and potentially
damaging.
INDUCTION
MEANING
Induction is the process of introducing a new employee to the company culture and processes
with the aim of bringing them up to speed as quickly as possible as well as making them feel
socially comfortable and aware of their professional responsibilities. Companies will typically
have an induction programme in place and follow the same processes for all new hires, although
the induction process may vary depending on the industry, the job role and the seniority of the
new hire.
The main object of induction is to make the new employee feel at home and develop a sense of
pride in the organization and commitment to the job.
(v) To help the employees know the different facilities and opportunities available in the
organization.
(vi) To help the new employees to minimize the “reality shock” that they may undergo after
reporting to duty.
ON BOARDING
What is Onboarding?
Onboarding is a human resources industry term referring to the process of introducing a newly
hired employee into an organization. Also known as organizational socialization, onboarding is
an important part of helping employees understand their new position and job requirements. It’s
the process that helps them integrate seamlessly with the rest of the company. There are many
activities that go into the onboarding process, from the job offer to team training. Onboarding
may last anywhere from a few weeks to a year, but the most effective onboarding usually lasts at
least a few months. Ideally, employees will feel confident and competent when the onboarding
process is complete.
Onboarding consists of multiple individual processes; however, it has no official definition and
opinions still vary as to which processes fall under the umbrella of onboarding., onboarding can
include the following:
Job offers
Salary negotiation
New hire paperwork
Policy and culture training
Job training
Employee handbook training
Benefits paperwork
Benefits education
Facility tours
Executive introductions
Team introductions
One thing HR professionals generally agree on is that onboarding begins the moment a candidate
accepts a job offer and ends when a new employee is fully integrated and performing as
expected. Whether or not an organization provides all of the onboarding elements in the list, it’s
a wise investment to provide all new employees with a thorough, efficient, and consistent
introduction to their new organization.
Research shows that the quality of onboarding experienced by new employees dramatically
impacts engagement, performance, and longevity, among other factors. The best onboarding
processes will include relational onboarding, which includes:
Setting expectations
Building relationships with other employees
Creating confidence and trust
Creating a clear definition of roles and boundaries
Starting a new job can be overwhelming, and onboarding is most effective when it is spread out
over time. This allows employees to better retain information by giving them time to process
everything and ask questions as needed.
There is no strict rule about how long onboarding a new employee should take. However, it’s
important to be thorough in this process if you want to maximize employee engagement and
minimize employee turnover. Many companies have an onboarding process that lasts only a
month or a few weeks, which risks new employees feeling overwhelmed with their new
responsibilities and not connecting with the rest of the company.
Many HR professionals recommend that an onboarding process should last about 90 days, while
some professionals recommend extending the process for as long as a year. This ensures
employees have the resources they need to get to know the company, internalize their training,
and feel comfortable doing their job as expected.
AND PLACEMENT
MEANING
In the words of Pigors and Myers, “Placement is the determination of the job to which an
accepted candidate is to be assigned and his assignment to that job. It is a matching of what the
supervisor has reason to think he can do with the job demands. It is a matching of what he
imposes in strain, working conditions and what he offers in the form of pay roll, companionship
with others, promotional possibilities etc.”
PLACEMENT IMPORTANCE
1. If the employees are properly placed, they will enjoy their work and organization will not have
to suffer the problem of employee turnover.
2. If employees don’t like their work, they start making excuses from the job and remain absent.
Effective placement will keep the absenteeism rate low.
3. Morale of workers increases because they get the work of their choice, if correctly placed.
4. Workers will work attentively and safety of workers will be ensured and lesser accidents will
happen.
5. Workers will be satisfied with their jobs and there will be no reasons for disputes, so human
relations will improve.
6. Through proper placement, misfit between the job and person can be avoided.
7. Efficient and effective performance of individual tasks will ensure the achievement of
organizational goals.
8. Productivity i.e., ratio of output to input increases as wastage and abnormal losses decrease.
Placement should be done keeping into view the job and social, psychological & emotional
needs of person.
RETENTION
MEANING
1. Cost reduction. U.S. employers spend hundreds of millions of dollars every year
recruiting and training new workers. Those costs are sunk if an employee leaves
prematurely. Productivity, team cohesiveness and morale also take a hit — which also
has a financial impact. Total replacement costs for each employee can range from 90% of
a worker’s salary for an entry-level employee to 200% or more for tenured professionals
and leaders.
2. Recruitment and training efficiency. By focusing on employee retention, companies
reduce recruiting costs and enjoy greater returns on employee training. Recruiting costs
include fees paid to recruiters or to advertise the position, interview-related travel and
possible signing bonuses. Next comes training, which can also be costly. If the employee
leaves prematurely after being hired, that money is wasted.
3. Increased productivity. Employee turnover sets back productivity because it takes time
for a new worker to get up to speed and produce at a comparable level as their
predecessor. It also takes a toll on remaining staff, who have to take on additional work
and may produce lower-quality output as a result. Conversely, high-retention workplaces
tend to have more engaged workers who, as a result, are more productive.
4. Improved employee morale. Organizations with successful employee retention
programs foster greater connectedness and engagement, which helps morale and, in turn,
boosts retention. Conversely, a steady stream of departures has a dampening effect on
workplace morale, with side effects that include a decrease in work quality and more
workers who decide to leave.
5. Experienced employees. It stands to reason that the longer employees remain at an
organization, the more engaged, knowledgeable and skillful they are. They have also
forged valuable relationships with customers and co-workers. When an employee departs,
the company incurs an opportunity cost in the potential value the employee could have
delivered.
6. Better customer experience. Inexperienced and less adept new hires may be more prone
to missteps that negatively impact a customer’s experience with the company. Satisfied,
longer-term employees are often more skilled in dealing with customers and may have
strong relationships with them. This is as true during all the stages leading to a signed
contract as it is post-sales, when a customer might reach out to customer service. A better
customer experience can also be a key brand differentiator.
7. Improved employee satisfaction and experience. A symbiotic relationship exists
between retention and both employee satisfaction — worker happiness and fulfillment —
and employee engagement, the level of commitment workers bring to their roles.
Satisfied and engaged employees are often more likely to stay in an organization, and
organizations with high retention rates often experience greater employee satisfaction and
engagement.
8. Stronger corporate culture. Corporate culture develops over time, based on employees’
cumulative traits and interactions. When engaged employees who are aligned with an
organization’s culture stay, they strengthen the organizational ethos. A strong corporate
culture also improves productivity and performance.
9. Increased revenue. Employee retention is not just about cutting costs; anecdotal
evidence shows it can have a positive impact on revenue as well. Employers with better
retention rates deliver a better customer and employee experience, hold on to experienced
top talent and are more productive — each of which can boost growth.
MANAGING ATTRITION
MEANING
Attrition is the departure of employees from the organization for any reason (voluntary or
involuntary), including resignation, termination, death or retirement. Attrition rate is the rate at
which employees leave an organization divided by the average number of employees at the
organization over a given period of time.
9 Tips to deal with the employee attrition
By following some simple and straightforward policies one can control the attrition in their
organization. The Retention tools are as follows
Fair compensation single-handedly will not guarantee the loyalty of the employee, but offering
wages below market makes it more likely that the employee would look for a job at some other
place. As per the research, if the incomes lag behind more than 10 percent at similar jobs in other
companies across town, the employee is more likely to bolt. To maintain the workers, conduct
reviews of the salaries regularly for all the job titles that you offer- experienced staff, entry-level
staff and supervisor level staff. Compare the salary of your department with reliable averages
that are statistical. If there are substantial differences, the company needs to consider making
adjustments to assure to stay in line with the marketplace.
specialized areas, take on more responsibilities or obtain additional education. Technologists are
encouraged to skip from job to job due to sign-on bonuses, while retention packages offer
reasons to stay.
RETENTION STRATEGIES
What Is a Retention Strategy?
A retention strategy is a plan that organizations create and use to reduce employee turnover,
prevent attrition, increase retention, and foster employee engagement. While some turnover is
inevitable, building a retention strategy to prevent as much voluntary turnover as possible can
save an organization a lot of time and money. After all, it’s much easier and much less expensive
to train and develop your current employees than it is to continually hire new people.
The focus of an employee retention strategy is just as it sounds: retaining employees. However,
there are other positive outcomes of an effective retention strategy besides just getting people to
stick around your organization longer:
Lower turnover
Lower hiring costs
Increased employee productivity
Higher employee satisfaction
This means that creating a retention strategy isn’t just a good idea if you’re experiencing higher-
than-average turnover; it’s a good idea for any organization that wants to improve its culture,
employee experience, business outcomes, and more.
While the job market in some industries and regions favours employers, candidates with in-
demand skills likely won’t have to wait long to find a new opportunity. Many companies never
stopped recruiting talent during the pandemic, and many others have picked up the pace of hiring
in recent months.
If you sense your business is at risk of losing top talent, you need to move fast to shore up your
employee retention strategies. Here are 14 areas where deliberate action can help boost
employees’ job satisfaction and increase your ability to hold onto valued workers:
Every new hire should be set up for success from the start. Your onboarding process should
teach new employees not only about the job but also about the company culture and how they
can contribute to and thrive in it. Don’t skimp on this critical first step. The training and support
you provide from day one, whether in person or virtually, can set the tone for the employee’s
entire tenure at your firm.
2. Mentorship programs
Pairing a new employee with a mentor is a great component to add to your extended onboarding
process, especially in a remote work environment. Mentors can welcome newcomers into the
company, offer guidance and be a sounding board. And it’s a win-win: New team members learn
the ropes from experienced employees, and, in return, they offer a fresh viewpoint to their
mentors.
But don’t limit mentorship opportunities to new employees. Your existing staff — and your
overall employee retention outlook and team’s job satisfaction — can significantly benefit from
mentor-mentee relationships.
3. Employee compensation
It’s essential for companies to pay their employees competitive compensation, which means
employers need to evaluate and adjust salaries regularly. Even if your business can’t increase pay
right now, consider whether you could provide other forms of compensation, such as bonuses.
Don’t forget about improving health care benefits and retirement plans, which can help raise
employees’ job satisfaction, too.
4. Perks
Perks can make your workplace stand out to potential new hires and re-engage current staff
while boosting employee morale. According to research for our Salary Guide, flexible schedules
and remote work options are the perks many professionals value most. In addition, about a third
of the professionals we surveyed said paid parental leave is a big plus.
5. Wellness offerings
Keeping employees fit — mentally, physically and financially — is just good business. Many
leading employers expanded and improved their wellness offerings during the pandemic to help
employees feel supported and prioritize their well-being. Stress management programs,
retirement planning services and reimbursement for fitness classes are just some examples of
what your business might consider providing to employees.
6. Communication
The shift to hybrid and remote work has underscored the importance of good workplace
communication. Your direct reports, whether they work on-site or remotely, should feel they can
come to you with ideas, questions and concerns at any time. And as a leader, you need to make
sure you’re doing your part to help promote timely, constructive and positive communication
across the entire team. Make sure you proactively connect with each team member on a regular
basis, too, to get a sense of their workload and job satisfaction.
Many employers are abandoning the annual performance review in favor of more frequent
meetings with team members. In these one-on-one meetings, talk with your employees about
their short- and long-term professional goals and help them visualize their future with the
company. While you should never make promises you can’t keep, talk through potential career
advancement scenarios together and lay out a realistic plan for reaching those goals.
As part of providing continuous feedback on performance, you can help employees identify areas
for professional growth, such as the need to learn new skills. Upskilling your employees is
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especially important today as technology continues to change how we work. When people
upskill, they gain new abilities and competencies as business requirements evolve.
Make it a priority to invest in your workers’ professional development. Give them time to attend
virtual conferences, provide tuition reimbursement or pay for continuing education. Also, don’t
forget about succession planning, which can be a highly effective method for advancing
professional development and building leadership skills.
Every person wants to feel appreciated for the work they do. And in today’s “anywhere
workforce,” an employer’s gratitude can make an especially big impact. So be sure to thank your
direct reports who go the extra mile and explain how their hard work helps the organization.
Some companies set up formal rewards systems to incentivize great ideas and innovation, but
you can institute compelling recognition programs even if you have a small team or limited
budget.
What message is your time management sending to employees? Do you expect staff to be
available around the clock? A healthy work-life balance is essential to job satisfaction. People
need to know their managers understand they have lives outside of work — and recognize that
maintaining balance can be even more challenging when working from home. Encourage
employees to set boundaries and take their vacation time. And if late nights are necessary to
wrap up a project, consider giving them extra time off to compensate.
Many companies understand that even though they have reopened their offices, some of their
employees still prefer to work remotely, at least part-time. Not having that option might even
spur employees to resign. A recent Robert Half survey found that half of professionals working
from home would look for a new job if they were required to return to the office full time.
So think sooner than later about what you can offer employees if remote work on a permanent
basis isn’t an option. A compressed workweek? Flexitime? Or maybe a partial telecommuting
option? All of the above can help relieve stress for your team — and boost employee retention.
Beyond all the recent disruption due to the pandemic, every workplace has to deal with change,
good and bad. And employees look to leadership for insight and reassurance during these times.
If your organization is going through a big shift, keeping your team as informed as possible helps
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ease anxieties and manage the rumour mill. Make big announcements either individually or in a
group call or meeting, and allow time for questions.
You should encourage all your employees, not just star players, to contribute ideas and
solutions. Promote teamwork by creating opportunities for collaboration, accommodating
individuals’ work styles and giving everyone the latitude to make decisions and course
corrections if needed.
A final tip for promoting employee retention is to shine a light on notable achievements.
Whether your team finishes ahead of the deadline on a major project or a worker reaches a five-
year work anniversary, seize the opportunity to mark the milestone together. Even if you need to
celebrate virtually, it can be a meaningful and memorable moment for everyone.