Linda Ross

Retaining top executives should be a priority for any organization. Not only is this beneficial when it comes to productivity, it is also better for the company’s coffers.

According to the MIT Sloan Management Review article “Getting New Hires Up to Speed Quickly,” a Mellon Financial Corp. study found that companies end up spending more money whenever they take in new employees. This is because new hires are expected to have learning curves when it comes to accomplishing tasks, thereby affecting productivity and possibly leading to loss of income.

According to an Industrial Distribution article, the National Association of Colleges and Employers says that when businesses recruit and hire a new person in a company of fewer than 500, they spend $7,645 on the average per hire. Think hiring costs, job posting fees, and training, among other things. It is more expensive to hire people than to keep current employees.

With this in mind, it makes sense that an organization would be more focused on building up their talented executives by creating a healthy work atmosphere with positive employee engagement. When hard work is recognized and rewarded, employees will be more motivated to stay and grow with the company.

A healthy organizational structure and development can help drive talented individuals toward doing quality work and becoming great contributors to the company’s growth and success.

In this article, we will discuss the reasons why employees leave and how we can prevent our top executives from vacating their positions.

Reasons Why Employees Leave

To retain top executives, we must first understand why employees quit. There are many factors that contribute to an upward trend in employee turnover, and below are some of the biggest reasons:

• Dissatisfaction – This could be due to lack of employee development and growth opportunities, unsatisfactory salary and benefits, or poor employee management.

• Better Opportunities Outside – The business world is a competitive arena, and chances are that if an employee feels dissatisfied in a certain area of his or her employment and sees a better opportunity elsewhere, that employee will leave.

• Work-Life Balance Issues – People have lives outside of work, and when there is a great imbalance between the two, it can cause them to leave the company and pursue a more compatible or flexible work opportunity.

How to Retain Top Executives

Employee retention is one of the most important ways to gain ROI in any business and below are some of the ways to get your top performers to stay with the company for many years.

Effective Recruiting

The first step in managing employee retention is during recruitment. There should be an alignment between the applicant’s and the company’s mission, vision, and values. The more in sync they are, the healthier the employer-employee relationship.

An employee who believes in the company’s goals is more likely to stay longer, so careful filtering should be conducted during the hiring process. If the applicant is following a proper executive resume example, it should be easy for the recruiter to check and cross-reference important items during the interview, with the goal of finding a candidate with similar goals and values as those of the organization.

Employee Development

An unchallenged employee is an unhappy employee. It is important that the company partner with the employee regarding growth and advancement and that such goals be established and made clear to the employee. Adult learners are goal-oriented, and by motivating them to reach higher goals and learn new things, they will be more encouraged to stay.

Continuous learning and development should be enforced, which will allow the employee to upskill and move to a higher position.

Recognize Talent and Hard Work

Build self-esteem and confidence by appreciating your employees’ hard work. Positive feedback is a highly effective way to reinforce positive behaviors. If your employees feel good about themselves, they will be motivated to become even better.

Adaptability and Flexibility

Much has changed within the past couple of years, and companies need to keep up with trends and current events, so their employees can continue to feel safe and relevant. It is also important to be aware of your top performers’ current needs so that the company can find ways to help them overcome challenges.

It is essential that organizations become more open to flexible work schedules, work-from-home arrangements, and remote work, if applicable. This is a great way to avoid work-life issues, which can lead to resignation.

Offer Compensation and Rewards

People who are satisfied with their pay grade are more likely to stay longer with a company. Needless to say, the company should offer competitive compensation, benefits, and other rewards.

Employees might love their job, but if not well compensated, a resignation could be inevitable.

Regular Employee Engagement Activities

Engaged employees are less likely to leave the company to find better opportunities. The more engaged an executive is, the better that person understands his or her role in the company’s success, and this is something the employee can take pride in.

Come up with strategies and activities that promote employee satisfaction and motivation.

Employee retention is a lot like customer retention. We go to great lengths to keep our customers happy so they will continue doing business with us. Why not do the same for our top executives?

Post written for Jobcast by Linda Ross.

Your hard work is finally paying off: after reaching milestone upon milestone in your small business, you feel like you are ready to grow and hire your first employee. This is a benchmark that should be celebrated! A successful small business will eventually grow, and you will have to hire someone else to help you run your expanding company. Hiring your first employee can be nerve wracking. You worry if you are doing things right, about finding the right person to hire, and about on-boarding someone new. These are all legitimate concerns for someone who spent hundreds of hours building a business. You want to make sure that each step you take brings you forward and does not set you back. If you’re not exactly sure what to do before hiring your company’s first employee, do not worry. We will discuss some of the important items that you need to consider during this important stage in your business. If you are hesitant about adding a new person to the team, you may need to evaluate your current situation to determine if it is necessary. Below are some signs that you need that extra pair of hands on your team immediately.

Signs That You Should Hire Your First Employee

• You are unable to take in new customers – A major sign that you need to expand is when you have to decline orders or accept new customers simply because you are unable to physically fulfill orders in a timely manner. This simply means your business is growing and it may be time to hand some of the tasks off to someone else so you can focus on more important business matters.

• Quality of service or product is compromised- When you spread yourself too thin, there is a big chance that something is being compromised down the line. Usually, it is the product quality. You cannot do everything on your own and expect to cover everything perfectly. This is a clear sign that you need some help and hiring an employee can allow you to balance things out again.

• You skip breaks and vacations in favor of your business – Like they say, all work and no play makes the CEO a cranky and irritated person. As a business owner, you need to stay motivated and energized and this is hardly possible if you are not getting the rest and relaxation that you need. Sooner or later, the business is going to feel like a burden, and it could go downhill from there.

What to Do Before Hiring Your Company's First Employee Now that you are certain about this move, and have identified the type of employee you’re taking in, let us take a look at some key elements that need to be taken care of prior to hiring your first staff.

• Prepare the Job Description for the Role - Before you hire someone, you need to identify the role and scope of the work. This will not only help you identify skills to look for in a candidate, but this helps to set the proper expectations in both parties.

• Draft Salary and Benefits - Ensure that you are offering a competitive salary for the role that you are filling. Do a quick market check, and make sure everything is clean on paper. Highlighting growth opportunities and practical benefits can help in attracting quality candidates.

• Identify the Recruiter - Finalize who will conduct the screening and the interview process. Who will contact prospective applicants? Who will review the applications? Do you need help to figure out if you want to see a functional resume so you know what is standard for your industry? Lastly, you also need to identify who will conduct the job offer. You can either do these things on your own or you can outsource this process to a recruitment professional. The most important thing is to ensure a seamless process. You don't want to leave an applicant hanging or miss out on an opportunity to hire someone great simply because you forgot to call.

• Prepare On-boarding Process - To make the transition smooth for both you and your new employee later on, make sure you have an on-boarding process in place. Make a list of all the tasks assigned, a time frame for shadowing, and of course discussions on company background, mission, and vision. This way, you and your new staff can start off from the same page.

• Prepare All Legal Documents - To ensure that both you and the new employee are legally protected right from the start, all legal documents should be in place. Seek legal advice to ensure that all terms, clauses, and pertinent paperwork are in place.

• Payroll System - Perhaps most importantly, you will need to set up how you are going to pay the salary. You can hire an accountant, bookkeeper, or outsource to a payroll service. You can also learn to set this up on your own. Regardless, you need a system ready before you hire your first employee.

Hiring your first employee is the milestone you have been waiting for. This information will support you through this new and exciting phase in your business journey. Congratulations! Post written for Jobcast by Linda Ross.