Retaining great talent has become a daunting challenge for businesses, especially startups, worldwide. With the constant shifts in work patterns and global competition for talent, understanding the intricacies of compensation and talent retention has never been more important.
To help Nigerian employers and HR professionals tackle this critical issue, Motherboard hosted a Twitter Space featuring Emmanuel Faith, a seasoned HR professional and thought leader in people management. The discussion was highly informative, revealing key compensation strategies for attracting and retaining star employees.
Emmanuel Faith is a globally certified human resource professional, capacity-builder, and employability skills trainer. He recently launched an HR clinic where he shares his valuable insights with HR enthusiasts, fellow HR professionals, start-up founders, NGOs, and business leaders. You can book a session with him.
In this blog post, we'll highlight the main takeaways from the Twitter Space.
One of the primary pain points discussed during the Twitter Space was the "retention challenge." According to Emmanuel, this is a multifaceted issue. The competitive global job market, or the "japa syndrome" - a phenomenon where people, Nigerian employees in particular, seek opportunities abroad due to perceived greener pastures - plays a significant role. This emphasizes the need for organizations to create compelling reasons for employees to stay.
Workplace culture also emerged as another retention obstacle, emphasizing the importance of fostering a healthy and inclusive environment.
“Nobody wants to work in a place where they don't feel recognized and appreciated. And appreciation is not just money. It's people feeling good about the kind of work they do. It’s seeing that the work they do adds value and is appreciated publicly and privately.”
Emmanuel emphasized the importance of retaining talent instead of constantly hiring new employees. He highlighted the hidden costs associated with high turnover rates, such as lost knowledge transfer, prolonged onboarding, and execution glitches. These costs not only affect productivity but also impact a company's bottom line.
“I'm an advocate of keeping your talent rather than hiring a new one because the first thing you miss out on is knowledge transfer. Even with proper documentation and handover, there’ll be glitches in execution because the new hire cannot just carry on from where the previous handler was. That's lost productive time.”
Compensation, as Emmanuel explained, is more than just a paycheck. It encompasses the entire employee value proposition (EVP), including benefits, policies, and even the prestige associated with the company's name on a resume. As competition becomes global, strategic compensation planning can set a company apart, attracting and retaining top talent.
“The mistake I see a lot of people make is that they start the conversation from money. Compensation is everything you offer as an organization to your talent. It's the apportioning of benefits, the different policies, the stocks, etc. It's the aggregation of all these things and how they work to improve your company's retention rate. Always think of compensation from a holistic POV”
Data-driven HR is the future. Emmanuel highlighted the importance of using data to inform HR strategies and design effective compensation plans. HR professionals must pay attention to trends, process data, and use it to make informed decisions. By understanding trends and patterns, HR managers can create strategic policies that resonate with employees, address their needs, and drive retention.
“Data contributes a lot to implementing strategies and policies. A huge part of what differentiates strategic HR professionals from operational HR professionals is how they are able to study trends and process data to make informed decisions.”
Career advancement and personal development opportunities should be seamlessly integrated into compensation strategies. Clear career mapping and the promise of stability can significantly influence employees' decisions to remain with an organization. Employees want to know where they'll be in the coming years and how their roles will evolve.
“Painting clear pictures of employees' career trajectories, especially for entry and mid-level employees, is a very huge part of attracting the right kind of people and retaining them. If there's anything people value next to money, it’s stability.”
Recognizing and appreciating employees' achievements, whether personal or professional, contributes to a positive workplace culture. These gestures help build loyalty and strengthen the bond between employees and the organization. It’s also important to offer non-salary perks such as accommodation aids, health benefits, vehicle policies, and other benefits that help ease the cost of living and improve the quality of life for your employees. These non-salary perks can also sweeten job offers or compensate for less competitive salaries.
“Celebrating milestones is very important and it's one huge benefit. Let people be excited to look forward to their milestones, both professional and personal. Other parts of our lives contribute to our functionality at work so it's important to contribute where you can and celebrate people's personal wins too.”
The Compensation Code is ever-changing, but with insights like these, you'll be well-equipped to attract and retain top talent, ultimately fueling your organization's growth and success. Remember to adopt holistic compensation strategies, leverage data-driven insights, and prioritize employee development and recognition.
Another great way to attract and retain employees is by leveraging an employee benefits platform like Motherboard. Motherboard offers a range of enticing non-monetary perks that can easily set you apart from the competition and also improve your employees' productivity.
Stay tuned for more HR insights and exciting events from Motherboard!
Listen to the Twitter Space Recording
