How to increase staff retention and ensure your business’s growth

By Colin Wilson
Director and Business Improvement Specialist, Key Business Advisors

Many small and medium-sized enterprises have business, financial and strategic marketing plans, but I have found that there is usually a lack of an effective “staff plan” – how to find the right staff, how to develop them, and how to keep them. Why do most SMEs fail to develop an effective people strategy for their business, considering that wages are one of, if not the biggest cost, to businesses?

Staff retention is key to a successful business, so it is critical that you have a “people strategy” if you want to effectively manage your staff and retain your top performers. It is important that your staff members are on the bus going in the same direction with you if you want to avoid the high cost of staff turnover.

Staff start in your business on their first day all excited and motivated because you have sold them the job and set the expectations, but where does it go wrong down the track? Is it poor induction, lack of leadership, lack of company structure, ineffective planning or poor organisation by you? Perhaps your staff members don’t fully understand what is expected of them, or do the goal posts keep moving and changing?

To make sure your staff stay and contribute to the growth of your business, follow the tips below to help you consistently manage and motivate your team.

• Ensure your HR process is compliant with Fair Work Commission standards to minimise risk and protect your business. Managing staff performance is a must in any business that employs people, and it has to be done correctly and regularly.
• Be organised and have an effective staff plan in place. Having the right performance management system and workplace improvement strategies in place will also maximise your opportunities and increase productivity, which would lead to bigger profits. Lack of planning and poor leadership are demotivating to staff, particularly those who are high achievers.
• Have clear Position Descriptions (PDs) that include Key Performance Indicators and Key Result Areas for everyone in your business. You need to be able to rely on your staff members to do their jobs as per their PDs, and they must be clear about what they have to focus on in order to adequately perform their roles.
• Support your staff in developing their skillsets. Businesses must focus on growing both profits and staff members – generally, one will not happen without the other. You must develop your staff’s skillsets to ensure the success of your business, as having excellent knowledge of your products and systems will improve their ability to serve your customers.
• Encourage and maintain a culture of teamwork. It is extremely important that all departments within your business work together as one team and support your sales process and client strategy. If the culture of your business promotes teamwork and focusing on customer satisfaction, then the business will see positive results.

In a free webinar on Tuesday, 3^rd February, I will share with you more ways you can better manage and motivate your staff. You’ll find all the details here: https://attendee.gotowebinar.com/register/1188734060694279425

Managing staff is one of the hardest skills to learn, particularly when your team comprises different age brackets and personality types. In most cases, if a staff member is not motivated, then the business owner or manager has likely failed the staff member because of a lack of leadership or engagement to that staff member. In the webinar, I will provide you with the information and processes you need to implement so you don’t lose a valuable staff member because of something that’s avoidable. Register for the free webinar here: https://attendee.gotowebinar.com/register/1188734060694279425