How to retain key staff in competitive enviroment

The survival of any firm is pegged on the production of quality goods and services. And this is because the firms must convince consumers to buy their products as opposed to those of their competition.

This however, cannot happen unless such organisations become more efficient, cost effective, and develop into  market-driven and customer proven firms

To achieve all these, the organisations must have processes that ensure error-free operations. They also have to attract, nurture and retain a pool of talented staff with impressive academic achievements backed by quality result-oriented altitude.

So what should a firm do so as to retain talented and experienced employees?
• Medical insurance cover: The organisation must work out a comprehensive insurance cover for employees and their families to give them peace of mind at work.  A good medical insurance cover is efficient in its management and cheaper for organisations and their employees in the long run.

Mortgages
• Housing: The organisation can provide employees with houses belonging to the company which are surrendered back once the employee exits the firm. The firm can also help staff in secure mortgages  at competitive interest rates to purchase houses. Organisations can also engage in lease arrangement where an company leases a house for an employee. The most common method used, however, is to provide house allowance.
•  Staff development and training: Employees will seek opportunities to further their studies.  A firm that provides opportunities of training has a higher retention rate than one that does not have the same policies.
• Promotion policies: Some organisations have clear promotion policies and predictable salary increment based purely on merit.  They state specific targets to be met and maximum period within which a staff serves at a given grade before being considered for the next grade.  This strategy makes the staff buy time to wait for promotion.
• Job security and discipline policy:  Every employee’s top concern is job security.  But since mistakes are bound to happen, the employees want to know the disciplinary policy in place is based on fairness.
• Retirement scheme and ownership:  If there is good retirement scheme in place with a higher contribution rate by employer, the staff would want to work for the organisation till retirement. The organisation can consider offloading some of its shares to staff at good rates when such opportunities arise.


Attractive rates
• Company loans: The organisation could offer company loans to employees at attractive rates. Alternatively, staff can be encouraged to participate in their cooperative society by saving and participating in its management.
• Separation: Despite the concerted efforts to retain staff , the reality time of separation is always bound to come in one way or the other.  It is important that the separation in any form must be carried but as smooth and cordial as possible. The employees leaving the organisation form a powerful group of ambassadors for the company and could be a powerful marketing tool of the organisation. It’s important to consider farewell parties for such employees.  This will give a lot of confidence and hope to the remaining staff.

By Vincent Kanyang’onda (standardmedia)
The writer is a management consultant at vimok investment consultants.