Hiring the right employees for your business is important no matter what kind of company you run. Good employees who are happy at their jobs are not just good to have around, they contribute to the overall success and growth of the company.
They are, in fact, revenue drivers.
Several recent studies suggest that employee satisfaction directly influences a company’s financial performance. A 2015 study by job search engine Glassdoor found that companies named to its “Best Places to Work” list outperformed others in the stock market and saw higher returns in 5 years out of a 6-year study.
To put it simply, happy, satisfied employees are vital to your company’s success.
As one researcher put it:
“Employees should not be considered expendable commodities … but rather key organizational assets who can contribute significantly to firm value through innovation and customer relationships.”
But many companies have a hard time finding the right employees and keeping them.
The challenge is two-fold.
First, if a company lacks a good hiring strategy, it will be difficult to identify the right candidate.
Second, companies must be willing to invest in their workforce at the onset. Offering an engaging work culture, competitive compensation and good benefits is paramount if you want to retain the employees you worked so hard to hire.
The Lee Group knows better than anyone how important the hiring process is. It’s not simply reviewing cover letters and verifying resumes; it’s about understanding your company’s needs and matching them with someone who not only meets the requirements but who will also add value to your team.
How do you identify the right employee? The answer to that question will differ depending on a company’s needs. For instance, an engineering firm may be looking for someone with a technical degree who is also adept at public speaking, while an art gallery may be looking for someone with a liberal arts background who is a critical thinker.
But what both employers can do to make sure they are reaching the right prospects is to make sure they have defined their company’s mission and values. It’s important to know who you are as an organization, what you want from your employees and what process determines if a candidate is a good fit.
Having a good hiring process will help you weed out candidates who don’t fit the bill. After all, a bad hire could be costly.
Here at The Lee Group, we find solutions to staffing challenges for everyone from local startups to Fortune 500 companies. We are nationally known, and our screening and recruiting practices allow us to find the best employees for your business.
Now that you’ve identified your ideal employee, how do you prevent him or her from leaving?
Several factors are key in employee happiness and retention, and the top motivating factors may surprise you.
A study in the Harvard Business Journal and a report from an author and business coach both point to employee engagement and business culture as the main drivers of employee satisfaction.
More than high salaries, employees want to feel like they are a part of something “special.” This happens when the “right” employee’s vision and values align with their employers. In tandem, the employer does a good job of engaging with that employee and making him or her feel valued and respected.
Recognition at work also makes for happy employees. Employers who value performance and reward employees for their hard work, whether it’s with a certificate, a promotion or a luncheon, create a positive work culture. Plus, recognition motivates employees, and in turn, they stay longer.
Finally, compensation and benefits should be addressed, though in some industries this may be more important in employee retention then others. A financial planner or stock broker, for example, often is more concerned about compensation than most people who go into nonprofit and health care fields primarily to help people.
While a recent study reported that only 12 percent of people say they left their job because of low pay or poor benefits, it doesn’t mean it’s not important. You don’t have to offer the highest salaries in your market, but you should be competitive. Offering raises, bonuses and award programs are also a great way to motivate employees and keep them on your team.
Where does this leave you?
Recruiting and developing talent clearly contributes to an organization’s productivity and growth, but it’s no small feat.
If your organization is looking to grow and transform this year, it’s time to start thinking about your workforce, and The Lee Group can help.