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How to retain employees when your average salary is lower than the industry standard
Despite perceived wisdom, attracting and retaining the best talent doesn’t always mean offering the highest salary. For many companies, employee retention is a matter of providing employees with a positive, flexible, and balanced working environment.
If your average salary benchmark is lower than the industry standard, try these non-financial employee retention techniques.
Build a positive working environment
A strong work culture is critical in any modern workplace, and it’s especially valued by younger workers. According to a study by Robert Walters, 50% of millennials say a good culture and a strong reputation are the most important factors to consider when choosing an employer.
Businesses should work on maintaining a positive environment by encouraging an ‘open-door’ policy allowing free communication and sharing of ideas. Creating frameworks for recognition, team building, and wellbeing are also crucial to creating a welcoming team atmosphere.
Make flexible work a priority
A good work-life balance is considered important for virtually all workers (95%), according to a recent study by PwC. Candidates also want to be able to work from anywhere, at any time, by utilising the latest technological capabilities.
With this in mind, catering to different work practices (such as remote work or flexible hours) not only acts as a significant non-financial incentive but also increases employee satisfaction.
Encourage training and career progression
Career growth is the number one deciding factor for candidates when searching for employment – beating a competitive salary in second place – according to the same study by PwC. Likewise, employees want to be confident that they will have the ability to grow their skill set through on-the-job mentoring and training opportunities.
As such, employees must develop training and upskilling initiatives if they want to be able to attract and retain the most ambitious young professionals.
Recognise and reward your employees’ efforts
It comes as no surprise that workers want to feel that their achievements are recognised, and the work they do is worthwhile. In fact, the 2017 Trends in Global Employee Engagement report found that reward and recognition initiatives by APAC companies have the greatest positive impact on employee engagement – even more so than financial reward.
Given this, businesses should focus on employee award initiatives and bonuses for quantifiable achievements (rather than blanket salary increases) to assure employees that their work is valued.
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