Meet Mary. She’s a motivated, hardworking employee. Mary’s been with her current company for more than three years. She loves her job and her co-workers and feels like she’s paid fairly and receives great benefits. But Mary’s still looking for a new job with a new company.
What’s scary for a lot of employers is that Mary is not alone. An October 2015 Gallup poll of more than 13 000 employees found that the last time respondents changed roles in their career, 93 percent also changed employers.
Considering this, many employers are desperately trying to figure out why so many employees are leaving.
Employee retention is no longer only about making employees happy in the present – employers also have to consider their satisfaction with the future.
Here are three reasons employees feel they need to leave a company and how to make them want to stick around:
1. Employers are not helping them define their career path
A 2015 report from LinkedIn surveyed more than 10,500 workers who had changed jobs and found that 59 percent of respondents did so because of better opportunities and a stronger career path. For a bit of perspective, only 54 percent took a new job because the compensation was better.
For employees, the ability to grow and continue on their career path is extremely important. They’re waiting for employers to show them how they can do that within their current company.
To help employees define their career paths, ask them where they need assistance.
Everybody has their own goals and expectations for their career and, unless employers discuss this with their employees, it’s near impossible to be a part of that growth.
Start a dialogue with each employee about what they’d like to be doing in five, 10 and 15 years. Find out what skills they want to acquire or sharpen, and tell them which they need to be successful. Then develop a plan and keep track of their progress.
Most importantly, give them the tools they’ll need. Offer leadership training, work experience in a variety of departments and mentorship programmes as ways to invest in an employee’s future.
This will help employees meet their professional goals, and help employers retain well-trained, high-performing talent.
2. Employees’ success is not tied to the company’s success
Everybody likes to know that the work they do impacts their company. However, most employees are compensated for their performance, not how they affect the company’s success. They are part of the process, not the result.
Giving employees stock options or shares of the profits rewards them for how their work has improved the company as a whole. It makes them feel like a more integral part of the organisation, instead of just a cog in the machine.
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Receiving profit-shares or company stocks strengthens the relationship employers have with their employees. It tells them that employers recognise that the company’s future relies on them as much as it does on the founders or the CEO.
3. Employers don’t promote from within
In the Global Recruiting Trends 2016 report from LinkedIn, 32 percent of the 3,800 talent acquisition professionals surveyed said employee retention was a top priority for their organisation.
Surprisingly, internal hires was only a priority for 12 percent. So it’s no wonder that the vast majority of employees feel the need to leave their company to advance when so few organisations are focusing on their current employees to fill workforce holes.
If a new management position is available, don’t go running straight to the job boards to find a candidate. Turn to current employees.
Even if they don’t have all of the necessary skills and experience right now, they do understand how the company works and what their co-workers want and expect from a superior. These are important insights it can take an outsider months to understand.
The other benefit of promoting a high performer to a new position is that employers control how fast the transition is.
This way, employers can ease them into new responsibilities and out of old ones at a pace that allows them to get their bearings in the new role. This chain of promotion that ensues is less jarring to the company.
For example, if Mary is promoted, she’ll still be in the office to train Jeff, the employee the company promoted to fill Mary’s old job.
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Jeff, in turn, can offer guidance to Ken, who’ll now be performing Jeff’s previous duties – and so on. Less time and resources can be spent on training outside employees and, as issues arise in the future, there is an expert on hand to help.
This article was originally posted here on Entrepreneur.com.
Charity Begins At Home This Festive Season
3 Ways to invest in your own employees.
We often only think of corporate social investment (CSI) as an organisation’s actions in the surrounding communities (philanthropy and volunteering), but CSI is also inward facing. By promoting employee well-being, your business can be a vehicle for change, not only in the society around it, but also directly in the lives of those working there.
Here are some ways you can invest in your own employees during the festive season:
1. Involve your employees in a higher purpose
This might sound like a bit of circular reasoning, but studies have shown that involving employees in CSI activities has several benefits. People involved in meaningful activities tend to be more motivated and willing to go that extra mile because of the higher good associated with the work. CSI programmes also:
- Increase co-operative behaviour and employee relationships
- Enhance the sense of company identity
- Improve employee retention and commitment
- Create an attractive company culture.
2. Provide the space for physical and mental breaks
The end-of-year and festive period is often a very stressful period. Balancing festive and family duties with increased pressure at work due to colleagues taking leave, looming year-end targets and planning for the next year can take a toll.
You, as the employer, can ease this stress by ensuring that there are systems in place that define holiday working policies. Promote time and productivity management to plan workflows and keep the momentum going in these last weeks of the year. Also make sure you have effective communication strategies in place for plans that are in the pipeline for the new year, so that employees can get their heads around upcoming changes. This will allow employees to plan ahead and build in time to switch off, knowing that all of the boxes have been ticked.
3. Constructive feedback/motivation
Also, take the time to acknowledge and show appreciation for the hard work that your staff has put in throughout the year. As the saying goes “valued employees are valuable employees.”
How Medical Savings Accounts Are Changing – For The Better
By Jeremy Yatt, Principal Officer of Fedhealth
The concept of medical savings accounts (MSA) emerged in the industry in the early 1990s, reputedly when Discovery founder Adrian Gore was working at Liberty. At that time medical scheme benefits for different kinds of day-to-day healthcare were specified, so for example, you’d get a certain amount of Rands to spend on your over-the-counter medicine, or for optometry services. But this was problematic, as people’s daily medical needs are all so different. So, you’d have medical aid members calling their medical schemes saying, “I haven’t used my spectacle limit this year, so can I transfer it to use on medication instead?”.
The idea for MSAs was to pool these separate benefits into a total Rand amount, that you could then spend how you wanted, and more importantly, retain if you didn’t use them all. Initially, medical schemes were reluctant to follow this idea, as they thought it would lead to under-servicing: medical aid members might be unwilling to spend their savings, and so might not get the proper day-to-day medical attention until it became a crisis and they were hospitalised. However this was not the case, and MSAs proved very popular.
At first, there was no real limit on how much of your contributions as a member could go into your MSA, so most schemes allocated around 40-50%. Many schemes also pushed major medical procedures like MRI scans into savings, which was effectively a way of forcing members to self-fund these costly medical expenses. As a result, the Medical Schemes Act was amended in 1998 to impose a 25% limit on the benefits that could be put into MSAs, which largely forced the schemes to be responsible for these major costs.
Under the previous structure there was no disincentive not to use your benefits, particularly as they didn’t roll over from year to year like Medical Savings do. It was therefore not uncommon for a call centre to get queries from members asking how much was available in their different benefit areas, so that they could make sure they used them all up.
MSAs solved these sorts of problems by giving medical aid members increased convenience and autonomy, which is why schemes have been using them for the past 20+ years.
The concept of an MSA isn’t far removed from a loan. Like a loan, an MSA lets you use a sum of money when you want to, but you still have to pay for it regardless of whether you use it or not. It forms part of the registered gross contribution to the medical scheme. Take the example of a member who has R12 000 they can access in their MSA each year. Effectively they are paying for this “loan”, contributing R1000 a month, starting in January. However an MSA means they can use all of that R12 000 upfront, such as if they need expensive dental treatment (crowns etc.) at the start of February that costs R12 000.
In this situation, the member has only paid for R1000 worth of that R12 000 “loan” (with their January contribution), so they effectively “owe” the medical scheme R11 000, which they then pay off over the remainder of the year. If the member left the scheme straight after their dental work, the scheme would then contact the member to repay the R11 000, as they still owe that amount.
The concept of giving members access to medical financing led us to develop our new MediVault offering for day-to-day medical expenses. Describing it as a loan holds negative connotations for some, but it’s not that different from the concept of an MSA: in fact, we see the MediVault as a natural evolution. All it means is that you won’t need to pay for day-to-day savings upfront. Instead, you’ll be allocated money for these everyday medical expenses in your personal MediVault and, once you’ve taken the money out, you only have to pay it back over a period of 12 months – completely interest-free. This is a far better option than taking out an expensive loan from a traditional loan company, or getting it from an unscrupulous loan shark.
Our MediVault offering is not at all about loaning funds to people irresponsibly. We’re not creating a monster that’s going to indebt you – we’re just changing the way you can access funds for your healthcare. After all, health is everyone’s most worthwhile investment, and we want to give people the flexibility to make it their top priority.
Year-End Reviews Are Not Always A Positive Experience
This is largely due to parties entering into it without proper preparations, thinking that it can be done in one meeting.
Performance reviews are similar to entering a race. It’s all about race day, but what you put in before the event (the discipline to wake up and train, the commitment to push yourself and stick to your training plan) is what makes race day either a great positive journey or a terrible experience. The same principle applies to performance reviews. It should not be a once-a-year meeting. It should be part of the monthly job description for both the manager and employee to be able to compare, adjust and review on an ongoing basis. Then, once a year, all the insights gathered during the year should be reviewed to plan for the next year.
Performance excellence reviews contribute to the culture of a company
We always say that attitude determines outputs or achievements. Personal attitudes, and the character of the business, is the culture. A great culture will lead to great achievements.
Performance excellence reviews are the tool we use to compare, adjust and shape what we want to achieve and then benchmark to know if it has been achieved.
Employee performance reveals a lot about the business’ achievements. A business is great when it is profitable, cares about and looks after their people, and contributes towards the wellbeing of society and/or the planet. It is all about performance. What you put in is what you get out. And this is what we need to understand.
Related: How to Set Up Employee Assessments
Performance excellence reviews can be a positive experience
Know the individual and their needs. There are really no one size fits all generic option.
There are however a few general good practices :
- Managers should firstly understand the value that performance excellence reviews contribute towards overall achievements.
- When the manager is positive about the reviews and the value it adds, automatically the employees follow.
- On a monthly basis, review the employee’s feedback relating to the progress of the functions / tasks.
- Be understanding as a manager – not all functions might haven been able to be completed due to job changes or the complexity of a growing job function.
- As employee, understand that a manager is employed to manage the performance of the team, the department and the business. This entails understanding the employees’ performance.
- New employees need to be reviewed more frequently eg. Bi weekly. When the employee has found their feet, review monthly or bi monthly.
- Do not review performance once a year only. Review frequently, and once a year have a focused meeting around performance to discuss what was achieved during the last 12 months.
- Managers should be responsible, and held accountable, to get all staff to complete their reviews (monthly, quarterly etc). It is the managers responsibility and it should be one of their functions.
- Employees should know that performance reviews are simply there to understand the job, and help to align the job and the person’s talents to get the best outputs. It’s about continuously striving towards efficiency and effectiveness.
- As a manager: Communicate progress feedback and offer assistance.
- Be consistent. Review frequently.
- Celebrate achievements.
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