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Attract and Retain the Best

Recruitment and retention are perennial subjects at all levels but perhaps most critical at a senior level where the potential risks for both employer and employee are greater.

Whilst it is true that many candidates find new roles with higher salaries, many others take a pay drop for a more rewarding role and the root causes of their moves are often little to do with salaries.

Company reputation can “make or break” a deal in recruitment; often a large part of a recruiter’s role is in conveying the reality about a company and countering the rumour and myth.

What are the key factors which influence recruitment decisions?

One of the most common concerns candidates have when considering a potential employer is the financial soundness of the business. Rumours abound all the time that this company or that is having a hard time. The stark reality is that most companies in most sectors are in very competitive markets but it does not necessarily mean they are going out of business anytime soon.

Market position has a great influence on recruitment. Everyone wants to work for a market leader. Reality does not always match perception but certainly there is an implication that the company is doing well with happy customers.

Service and quality are very important. A company that has a reputation letting down customers will find it hard to attract candidates. Alternately a relatively small player that is making waves and has a reputation for outstanding quality will often generate a lot of interest.

Innovation could be the key to the future in mature markets where there is a tendency for buyers to try to commoditise the products. Innovative companies with new products, services or ways of dealing with customers will be seen as leading edge and “the place to be.”

Management style is a factor which can be difficult to communicate but has a great impact on recruitment as well as retention. Some companies have developed a reputation as having a “hire and fire” culture; consequently many candidates look upon them as a risky move. Other companies are considered to have an autocratic style and structure and again many of the dynamic and ambitious believe they will be stifling. Of course there is no way to please everyone all of the time and different cultures will suit different candidates. Overall a firm but fair style based on performance appears to be most attractive.

So what about retention?

Clearly motivation is a key factor affecting retention. We all understand the benefits of a motivated workforce; increased productivity and creativity, reduced absenteeism and lower staff turnover.

So what is it that causes staff to leave and what can employers do to help retain key staff? Every individual has their own reasons for moving on but at a senior level the majority fall into one of the following.

Challenge: At a senior level where employees have to all intents reached the top of the tree motivation and interest can wane over time. Good managers build good teams around themselves and will often see their work as done and start looking for the next challenge. In larger organisation this is often accommodated with secondments or changes of divisions. However in smaller organisations it will often lead to a departure. The flip side is that these are the successful people new employers should be targeting; in particular by identifying the key challenges and opportunities within the role.

Career development: At the next level down we regularly see self motivated and talent staff change jobs for lower salaries in order gain particular experience or get into organisations with recognised career development opportunities. These people are so motivated they are willing to take a short-term step back in salary for longer-term benefits. Whilst more difficult in smaller companies most organisations can find special projects or secondments to provide development opportunities for their staff; providing the organisation with strength in depth and potential succession planning.

Responsibility with autonomy: We find that employees who have little autonomy to go with their responsibility become dissatisfied. Whilst everyone recognises there have to be boundaries the sense that they can really have control of formulating and implementing strategy is a key motivator.

Communication: Under-pinning all of these factors communication is crucial. In the worst cases employees feel the company doesn’t communicate the organisations objectives and performance effectively and more importantly where their individual contributions fit in to that. We often hear that people thought all was going well until they read in the press that the company reported a massive downturn in sales or financial losses.

Benefits: A good benefits package attracts and helps to retain high quality staff. However recent studies have shown that staff at different stages in their career favour different benefits, for example younger staff may tend to favour cash rewards rather than pensions. Companies can overcome these discrepancies by developing flexible “pick and mix” benefit options.

There is no guarantee or magic wand to secure and retain top performers. Clearly at a senior level the complex nature of what motivates top performers must be recognised. To be successful, in attracting and retaining the best, companies must address how they are perceived and what the employee is looking for in a career, It is rarely a simple case of financial reward.