The best way to ensure your business survives is to ensure you have the right talent working for your business. The big dilemma any company has to solve is not just to find the talent, but you also have to ensure the talent stays. Employee retention rate is a challenge every human resource department wants to solve.
The issue is especially important for businesses operating in UAE. While global employee turnover rates are on the rise, a recent Hays GCC survey found that around 57% of employees in the country are planning to change employers. This is much higher than the 23.4% on a global scale.
Employees are not just willing to change employers, but actually looking for new roles while working with another. Almost 60% of employees are constantly looking for new jobs – the challenge, therefore, is for employers to make the workplace so enjoyable that employees don’t feel the need to look elsewhere.
Understand the root cause of employee turnover
The key to improving employee retention rate is to understand why employees feel like leaving. While reasons can vary from company to company, with different industries having their own unique challenges, certain themes appear every time employees are quizzed on the topic.
The most common root causes are often:
- Perceived insufficient compensation and poor benefits packages.
- Lack of job security.
- Poor progression opportunities and career prospects.
In UAE, part of the problem can also be explained by the theory of supply and demand. Skilled workers are starting to flood the market, with the region’s employers not always being able to meet the demand for high-skilled jobs.
Improve employee engagement with better management
How can SMEs start tackling the problem of employee retention? Root causes show that the problem isn’t just about pay – it’s about the future of compensation as much as the actual pay. If the employee feels they have a future in the company and the future is that of progress, they will feel more engaged with the employer.
To increase retention rates, employers must focus on sustaining employee engagement. To do this, small business HR software is the key because it allows the proper use of different engagement strategies.
Human Resource management software should be used to:
- Hire the right candidates. HRMS can be used to screen candidates, making it easier to find talent that fits company needs in terms of skill but also company culture. For example, if your business is a more by-the-book employer, you don’t want an employee that doesn’t fit a strict environment.
- Provide training and guidance. HR software for SMEs should also be used for training and guidance. This can vary from online courses to on boarding materials that are easily accessible from wherever and whenever the employee wants.The software can also help you monitor employee progress in terms of courses and learning. This is valuable information for SMEs because it allows you to match the right skill with the right job.
- Offer transparency, flexibility and access. Software solutions should be used to allow employees more control over their own information and access to flexible working conditions. This can mean access to payroll information and the ability to decide and apply for holidays.
HR software for SMEs can allow companies to better manage employees through wider access for information and better analysis of employee performance. Studies have shown these to boost employee motivation and happiness.
For SMEs, the benefits are not just evident in the increased employee engagement. The software often automates many HR processes, which means cost savings.
Don’t focus too much on pure pay but provide unique perks
While compensation is an important part of employee retention, the focus shouldn’t just be about money. HR software for SMEs can be used to make sure you value talent and skills. However, small businesses can’t often compete in pay with large companies in terms of pure pay.
The key is to offer unique perks and non-monetary benefits. These could vary from proper healthcare insurance to flexible workhours. Even things like gym memberships and theatre tickets can help employees feel valued and looked after. The use of the latest technologies and gadgets within the organisation can have a good impact on employees.
Improving retention rates begins with understanding what the biggest problems are, improving employee management with HR software for SMEs, and ensuring skills and talent is appropriately valued. This allows your business to find the right talent and nurture them to help your business reach full potential which will help the business in branding too.
Veronica Hanks is a tech savvy girl who loves to explore and implement the power of business applications and software. She is currently working as a senior business analyst and lives in NYC. Besides being a tech addict, she is also as avid traveler and love to share lifestyle blog.