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In today’s unpredictable economy, it can be challenging for companies to retain their top talent during a recession. With layoffs, pay cuts, and decreased job security, employees are looking for stability and growth opportunities. As a result, retaining top performers becomes even more critical for organizations.
This was especially evident in a local construction company in North Wales. The pressure of the recession was pressing down upon the employers and retaining top performing staff was proving difficult with the cost-of-living crisis and decreased job security.
High turnover: This was hard for the employer to keep up with and was perhaps due to slightly lower than average salaries, workplace culture and the lack of advancement opportunities.
Poaching: Competitors were offering higher salaries and work benefits that our client was not matching. This tempted employees to leave. We knew it was important to stay competitive with others within the construction industry.
Onboarding: There was an influx of new job applicants in a certain sector of the company. Though this could have been seen as advantageous, it was affecting the stress of the existing staff. The first step was ensuring effective communication throughout the team and where possible offering guaranteed job security.
Our goal as a re-active HR service was to provide a strategy that would help this construction company retain its top performers. While reducing your workforce may be a necessary solution, it is not always best to do so. It can often prove more expensive to hire new employees than it is to retain the ones you have. Not to mention, a mass layoff can do serious damage to your company’s morale and reputation.
Positive work environment: Adequate training, engaging work, and advancement opportunities are key to retaining employees. A lack of growth prospects may prompt them to seek other job opportunities. We suggested that the construction company offer new training opportunities, again a more cost-effective way for retaining staff. In one scenario an employee was put on a training scheme which enabled the employer to delegate new responsibilities. It can be beneficial to look at your existing staff and see who you can train and promote. Your existing staff has a connection to the company and its culture.
Be flexible with hours and work locations: This is crucial for employees with families or external obligations. By offering flexible working hours, you can retain them and prevent them from seeking more suitable employment elsewhere. In many cases this was a challenge for a construction company, however, certain employees were granted amendments to their employment contracts and were able to work from home.
Offer job security: Employee job security can be ensured through guaranteed hours, salary protection, or bonuses for remaining with the company. This can reduce the likelihood of employees seeking alternative job opportunities as they feel secure in their current positions.
Examining the pay scale: Low salaries compared to industry standards can lead to employee turnover. We made it a priority to raise salaries where necessary to match industry standards.
The construction company was able to retain their top employees. Members of the team were offered training schemes which has allowed them to rise through the ranks, eliminating the need for costly recruitment. This was not completely avoided and where needed we were brought in to aid with recruitment.
The strategies we implemented has enabled the company to maintain morale throughout and offer a secure place to work for worried employees during the recession.