The value of talent retention in the third sector

As a recruitment agency, we are constantly faced with employers needing to fill roles vacated by staff members.

Yes, recruitment is our lifeblood, but our inside track knowledge of why candidates leave roles also gives us insights into what might make them stay. We are experts in our field and know the value of putting processes in place to ensure your employees feel satisfied, supported and motivated in their positions. These are strategies that go beyond joining the salary war, which is particularly key for our third sector clients who do not have bottomless financial reserves.

As an employer, your workforce will always be shifting, with employees leaving and joining for all sorts of reasons, but that doesn’t mean that you shouldn’t be making efforts to encourage them to stay. From our interactions with organisations, particularly in the third sector, we know how challenging and expensive it can be to recruit new employees.

Pinning down the true cost of replacing an employee is complicated, especially when you consider factors such as the productivity loss whilst training occurs and the time it takes for a new hire to become fully effective in their role. A report by Oxford Economics put this figure at around £30,614 per employee, a cost that organisations of any size would be keen to avoid.

So, what exactly can third sector organisations do to preserve their valuable workforce?

Small perks

As the cost-of-living rises, everyone is feeling the squeeze, employees included. This means that now, more than ever, your workforce will be pushing for pay rises to support themselves. As we’ve covered in a previous article, if you are able to give your employees pay rises when they are due, then you should. But that simply won’t be achievable for some.

Third sector organisations in particular are experiencing an increased demand for their services but a decrease in funds from donors, leaving them with little to play with when it comes to promotions. But there are other ways to demonstrate your gratitude for your staff’s efforts and raise morale, that won’t break the bank. Consider giving out £20 vouchers at the end of each quarter (as a trivial benefit), offering a free lunch for staff once a month or holding a baking competition whereby the winner gets a gift card.

These small tokens of your appreciation, whilst not as comprehensive as a pay rise, will go a long way in boosting morale and strengthening team cohesion. The reality is there will always be a percentage of people who will leave for a better salary, but the vast majority of employees just want to feel valued, that their career is going in the right direction and that their employer is considering their needs.

Personal development

When employees ask for a promotion, they are of course hoping for an increase in salary, but they are also striving to get to the next level of their career. There are numerous ways to support their progression at minimal or no-cost, such as the thousands of brilliant virtual and in person courses available. These will come in at a cost far lower than a promotion or may even be free.

The conversations that you have with your employees will of course cover personal development but putting even more time and energy into drilling down into their interests could be invaluable. Maybe they’ve always wanted to become a Mental Health First Aider or fancy trying their hand at a new skill. Encouraging them and providing support will not only benefit them but may also allow your organisation to grow in a new direction. And if you are able to pay for a course or buy a new piece of equipment, then you may just encourage a staff member considering leaving, to stay.

Honesty is the best policy

Your team is perceptive. They will know if your organisation is struggling financially, no matter how much you might be putting on a brave face. The best thing you can do is to be honest. Unable to give out promotions this quarter? Tell them. You can still express your gratitude for their hard work and reward them in alternative ways – for example through vouchers and social activities – but by being transparent they are much less likely to get cold feet.

Pretending that everything is normal, even if it isn’t, will no doubt cause feelings of frustration for an employee pushing for a pay rise. Being candid about any challenges is crucial. They may of course still decide to move on, but you can at least be confident in the knowledge that you have done all you can to keep them.

As an employer, you should never make assumptions about what your staff want and if times get tough you shouldn’t stick your head in the sand either. Communicate with your team whenever you can, whether that be via staff surveys or individual meetings. Ask their opinions and be flexible on the benefits or support you provide. Now is not the time to shy away from receiving feedback, whether it be positive or negative. If something isn’t working, then change it – it may turn out to be exactly what you need to retain your staff and continue to progress.

If you do find yourself in the position of needing to attract new talent, we are experts in navigating the jobs market and helping you to secure the best candidate around – get in touch with our team today: https://www.robertsonbell.co.uk/