24th, November, 2017

Increasing employee retention: development = value

The annual Investors in People employee sentiment poll, which reports on general feeling within the UK workforce over the course of a year, reveals that going into 2017 nearly one in three people are unhappy in their current role, with 34% of the workforce attributing this to feeling undervalued.

According to the poll, one in four employees are looking to move by the end of this year, with 51% of them citing pay as their biggest motivation, while 42% have an issue with poor management, and 33% have a perceived lack of career progression in their current role.

If companies, particularly SMEs, want to retain their employees, they must have a comprehensive development plan in place for each individual, and demonstrate their value to the organisation.

38% of younger workers (16-29), see being part of an organisation that values its staff as particularly important. Arguably this is because they may need the most development, but conversely may also be the most invested in their employer, and ultimately more valuable in the long-term.

Encouragingly, a 2017 study by the Centre for Economics and Business Research has found that SMEs see investing in their staff and bringing in new talent as key to progression, despite initial barriers.

Over a third of SMEs experienced challenges when hiring because of a lack of skill among applicants, and a further 27% had concerns around financing new employees. So the argument there surely becomes about sourcing applicants with the right attitude and skills along the lines of what the company are looking for. These are candidates who will be willing to learn, and will remain loyal throughout their development, while ultimately costing SMEs less.

Longevity is something that should be a priority for SMEs when it comes to staff, especially when they’re looking to expand or take the next step. Developing pre-existing employees increases retention, saves on cost, and ultimately boosts that feeling of company value.

Lockwood and Rann Investments Limited was established in 2009 and we pride ourselves on our consultancy team’s 150 years of combined experience in strategy, training and development, HR, Legal, Finance and Marketing.

To find out more about our services, call 01225 326 390 or email our team at enquiries@lockwoodandrann.com