2024 is marked to be a turn around year for small and medium sized businesses. While economic indicators can’t say for sure, positive momentum in business is expected. One area that could impact the bottom line is human resources. A recent survey suggested that two- thirds of employees would be job hunting this year and as external factors continue to pressure frontline staff. Job dissatisfaction can come from different sources such as a toxic work environment or low work satisfaction. Whatever the reason, turnover can be costly for small and medium sized businesses and a highly competitive labor pool will make it even more difficult to fill slots and maintain productivity. Using strategies that engage staff will promote a productive work environment that will increase retention, saving organizations time and money associated with turnover, hiring and training. .
Recognizing the Good, the Bad and the Ugly
Two of the major factors that contribute to an employee’s job satisfaction are feedback and development. Individuals who are left in the dark when it comes to performance and work quality are on a path to eventual failure. Leaders who engage their teams effectively understand the act of recognition and the importance of that recognition to the individual team member. Strategic recognition does not involve endless compliments and can cover both positive and negative work related results. Informal recognition can take place on the spot or during daily meetings and huddles. Formal recognition takes place during performance reviews and is documented in some form. Recognition shows an awareness and builds lines of communications between supervisors and staff and increases a sense of appreciation within the individual team member. Key elements that can positively influence employee retention and reduce or eliminate costly and time consuming staff turnover.
A Few Words About DEI
Laws vary by region but most businesses are under some type of labor rules that afford equal rights to all employees in the workplace. DEI is a relatively new acronym when it comes to human resources and stands for:
- Diversity
- Equity
- Inclusion
DEI are standardized values that businesses can employ to ensure a comfortable and progressive workplace for all staff members. Even small and medium sized businesses could easily employ a DEI strategy to promote these values throughout the business. For some individuals, DEI values are an important part of their job satisfaction and could drive retention in quality employees. Putting policies in place and communicating the importance of promoting DEI are key in ensuring these values are embraced and highlighting within the business. Studies from McKinsey & Company suggest that companies that put emphasis on DEI have stronger and more connected teams, will attract more qualified candidates when hiring and can also cater to a wider range of customers from different demographics.
Other Strategies for Retention
Both informal and formal recognition are primary ways to keep staff engaged and motivated. Development and learning opportunities also rank high on the list of contributors to job satisfaction. Ongoing training and skills development provides excellent engagement for individuals and will also positively impact productivity while driving profitability as employees utilize their new skills. Other ways to promote retention are:
- Having an open door policy when it comes to communication
- Offering opportunities for feedback from frontline staff
- Addressing employee concerns quickly and practically
- Communicating initiatives and operational goals
Leadership that can look through the ‘employee lens’ will have a better understanding of outcomes and can create quality work environments based on frontline staff perspective. Managers value highly skilled and experienced ‘veterans’ and retaining these key players is essential for businesses to grow.
The Bottom Line
Customer driven businesses have always had a challenge in finding and keeping skilled individuals that can handle the rigors of customer service. Economic realities in the post-pandemic world have only made it harder for small and medium sized businesses to fill vacancies and maintain productivity. With most workers planning on job hunting in 2024, the situation could become even more dire for organizations dependent on frontline teams to generate revenue. Turnover associated with job dissatisfaction is costly and will create even more challenges as the labor pool of qualified candidates become even more competitive. Managers and owners who understand the concept of recognition can utilize those tools to engage their teams positively, contributing to a more satisfying work environment for the individual. Employee retention can be directly impacted through positive recognition.