If your company has no fixed compensation policy, then as an employer you are being pulled and swayed by forces you cannot control, says Misco director Joanne Bondin.
Misco has published the 33rd edition of its annual Salaries & Benefits Report. This report, a highly anticipated one by the industry at large, is viewed by employers as the reference report on compensation research in Malta.
However, apart from providing information on salaries and related benefits, this report also includes an analysis of the most recent trends and developments in Malta’s labour market, all compiled as a set of results that make up the fifth annual ‘Misco survey on HR developments in Malta’.
One of the main outcomes of this survey report is the difficulty of employers in retaining talent within their organisation. In fact, I foresee that the top priority for HR people over the next 12 months will be retaining employees.
Job seekers could have many reasons for wanting to change jobs; however, the reality is that today, more people are moving and for many companies, retaining talent, especially after investing in developing them, is their most pressing HR nightmare.
“We meet employers who are constantly faced with the problem of finding the right people. Likewise, we come across many employees who are frustrated because their company does not offer a long-term vision or lacks structure. This is where a properly drafted and structured compensation policy can help both parties engage more effectively.
An important process a company should consider in order to retain its key talent is to develop a succession plan. Key people who hold the most important knowledge never have time to pass this on to their teams. Companies need to plan what to do if these key people one day had to decide to leave.
Sixty-eight per cent of the companies said they do not have a management development programme in place.
This puts them in a vulnerable position. Companies would do well to identify the second person in line in the respective departments and make a long-term plan on how to pass on the acquired knowledge – to secure business continuity. In turn, the employee who is second in line will feel empowered, acknowledged and invested in.
Another reason why companies are finding it hard to recruit the right people is because they are trying to recruit without any professional help.
While companies might think they are saving on recruitment costs, their recruitments costs are actually turning out to be higher than ever. Advertising vacancies, administration costs, time, assessment costs, induction and training costs all come at a price. If the chosen employees are not the right fit for the role or do not share the same values as the organisation, then the company will attract the wrong people and invest in their training only to see them leaving after a few months. This is extremely costly.
Employee engagement happens when companies show how they intend to grow and by showing their employees that they are going to be part of their growth plan.
Companies must understand that when they present their employees with a plan showing how they can grow their career within the company, they are also establishing a psychological contract, whereby employees feel more engaged and experience an increase in their morale. This could also reduce employee turnover. With a clear compensation structure in place, expectations are managed better. During interviews, candidates quote better salaries and personal advancement as the top main reasons why they would be seeking a change in jobs.
As professionals, however, we know that the reasons usually go beyond this, namely that the work is not challenging enough, being in conflict with the management style and the company’s direction, not fitting in with the company’s culture and being in need of more flexible hours.
The irony is that in the age of communication, employees and management are not communicating. We note how companies are experiencing a huge lack of communication across the board, which is making employees feel detached from their peers and from management. This too is a challenge for companies if they want to retain their talent. Retaining talent is in the interest of all those companies wishing to ensure business continuity. Many people think that retaining people is about offering the best salaries. We believe that salaries are just one component of a company’s HR strategy; this also needs to be supported by appropriate training and development activities, motivational activities and creating a caring work environment. Collectively, these will provide your employees with a positive employment experience and help you develop your employer brand.
To pre-order a copy of Misco’s 2018/2019 Salaries & Benefits Report, send an e-mail to email@example.com.
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