How the Hospitality Industry can overcome Unprecedented Recruitment Challenges in 2022! – Exela HR Solutions

 


Close your eyes and go back to the times you’ve opened resignation emails from your most productive bunch. Remember those specific instances and try to recall the emotion that first cropped up. No, this isn’t a guided meditation. But, your trip down memory lane will lead to some conclusive revelations about you and your company’s talent retention ideologies.

Understanding your Attrition Control Strategy

Assuming it was your top performer who decided to call it quits. Yes, the same one who shouldered the team’s targets and ensured KPIs got met by averaging the team’s productivity at acceptable thresholds. What is your instant reaction? Do you:

1.      Counter their new proposed remuneration till you get a favorable outcome?

2.      Entice them with a role or designation swap?

3.      Treat them like a traitor with poor work ethics and/or arrange for a loyalty convention program?

4.      Respect their decision and let them know their contribution will be cherished?

What’s your Retention Strategy?

So, what did you choose? Would you snoop around precariously to figure out the benefits of their new offer letter? What's important to them and which of their priorities are being addressed by their desire to switch? If it's all about better pay, did it occur to you that maybe you should top that? If they want more flexibility such as work timings, shifts, or location-wise, are you willing to offer suitable options? Or maybe you could arrange for internal projects and upskilling programs that will enlarge their professional portfolio and quench their thirst for noteworthy experience. Or perhaps it's time to show them who's more powerful, the organization and the management or the ones serving at the organization? Connivingly put them on a guilt trip regarding dedication and loyalty, maybe? How about introducing a loyalty bonus for top-performing employees?

Sure, you have a plethora of other options too. But, these would have been the most likely ones. There's no wrong answer so please be as honest as possible when you introspect. It's normal and sane to wish your effective workforce stays with you. There is productivity-based loss, time-related losses, and you also have to factor in the costs of hiring and training newly onboarded employees to desired levels of competency. Yes, a big fat loss is lurking over the horizon! So, there's nothing wrong with wanting them to stay. Talent retention and attrition control are vital to an organization’s sustenance and growth. But, if you react in a way that upholds their dignity and respects their decision after previously exhausting the other options, you're probably a Type 1 company.

Type 2 organizations tend to make decisions based solely on the effect on their organization. Bottom line and the company matter alone. Nothing else matters. Jobs get done by hook or by crook. But, if your answer was option 4, you’re a Type 1 organization. Type 1 organizations understand the value human capital brings in and prioritizes employees. They craft policies and workflows while considering the well-being of their employees. They're not necessarily charitable institutions; it's just that they realize the competitive edge and value that skilled and proficient labor carries. Not just that, they act upon that realization and proactively formulate employee retention strategies to hold on to their competent staff.

Also Read: Negative Attitude in the workplace? Effective HR Solutions That Work!

Effective Employee Retention and Attrition Control Strategies 

So, back to the example we began with, why would Type 1 companies do nothing significant and let their staff walk away? The answer is very simple. Type 1 companies pay their employees based on the prevalent market rate and their specific individual market value. Unlike most companies that offer compensation based on what a professional was earning in their previous organization, a Type 1 organization factors in other computable factors affecting KPIs apart from an employee’s last drawn CTC.

Every company has an appraisal limit. This usually averages around 10-20%. But, the hiring policy allows for an increment varying from 30% to a steep 100% hike. Instead of being rigid about these policies, Type 1 companies factor in productivity and profitability-based values that individual employees bring in. This keeps the workforce highly motivated, engaged, and loyal to the company. Employees understand although they're working for a salary, that salary is based on their potency and contribution, and their company values their efforts proportionately. If any employee still finds a reason to leave the organization, Type 1 management must move past talent retention and respect that decision.


Source link to read more details about more questions to improve employee retention and loyalty - https://ehrs.exelatech.com/blog/answer-these-questions-improve-employee-retention-and-loyalty

Get in touch with our experts today to learn more - https://ehrs.exelatech.com/contact-us

 

Comments

Post a Comment

Popular posts from this blog

Enhancing HR efficiency with a Revolutionary Payroll Management System – Exela HR Solutions

Image
  First, let's start by knowing what a payroll management system is and how it helps the organization and the HR department. To understand it clearly, let us first look at how the HR department of any company is responsible for calculating, distributing, and maintaining the salaries of the employees working in an organization. This is why the payroll system is directly linked to the organization’s HR department. The people working in  HR  interact with it and will be affected by the efficient performance or lack of efficient performance of the payroll system. In this article, we will outline several key points that will give you a detailed understanding of the payroll system. The recent trend of using paid payment software applications instead of traditional methods like spreadsheets or paper has brought about a lot of changes. It has made the payment process faster while also making a lot of functionalities and processes clearer for the employees and the HR team. For exa...
Read more

Is Your Payroll Team Leveraging AI Enough?

Image
  In an era dominated by technological advancements, the integration of artificial intelligence (AI) has become a game-changer for various business processes. One such critical area that has witnessed a transformative shift is payroll management. The traditional methods of  payroll processing , laden with manual tasks and prone to errors, are being rapidly replaced by innovative AI-driven solutions. As organizations strive for operational excellence, assessing the extent to which their payroll systems leverage AI is imperative.   Payroll, being the financial heartbeat of any organization, plays a pivotal role in employee satisfaction, regulatory compliance, and overall business success. Inefficiencies in payroll processes can lead to costly errors, compliance issues, and strained employee relations. Recognizing the significance of optimizing payroll processes, organizations are turning to AI as a catalyst for change.   The integration of AI in payroll is not merely a...
Read more