KEY POINTS:
We've all heard of the skills shortage in New Zealand and how hard-pressed employers are to recruit and retain good staff.
But one leading recruitment expert says employers could do a lot more to help themselves.
Richard Manthel, managing director of Robert Walters, says employees want regular feedback on their performance and a clear career path that sets out where their job can take them within their organisation.
Manthel's firm has just completed a survey on why staff look for jobs. There were some surprises in the results and plenty of ammunition for employers who want to stop their staff walking out the door to a competitor.
"The first surprise from the survey was that 60 per cent of the people we spoke to had been approached by recruitment firms and other employers asking if they were looking to move," says Manthel.
"Lots of organisations are being proactive in trying to recruit staff _ and this type of activity is not restricted to top performers searched out by headhunting firms.
"It is a very active market out there. People can start looking for a job on Monday and have three offers by Friday.
"It's putting real pressure on employers, which is why they have to act to retain their staff. Once an employee has decided to leave a job, statistics show they will typically be gone within three months."
In the survey, the company spoke to 324 people who were not known to be actively looking for a new job, to find out what would make them leave.
Results show that, even though most were pretty happy in their present job, more than half expected to be in a different role _ either with their current or a new employer _ within a year. Among the key reasons people said they would leave their job were career progression, better access to training and a lack of recognition.
"People like to be told they are doing a good job," says Manthel. "And that type of recognition can be worth more to a person than money.
"But we were surprised to see a trend towards career progression and training being listed. People want to receive training and they want to see where their career is going. They want a clear career path so they can see that, if they succeed in one role, they can move to the next."
Manthel says people are becoming more loyal to their career than any particular employer.
"People want to further their career," he says. "They want to see themselves progress and they need to do that with training and experience. And for that, they need to have good managers helping them.
"If employees feel their career progression is being stalled within their own organisation, then they will look outside."
Manthel says employers need to take an interest in the careers of their staff and be mindful of their aspirations. They need to offer staff feedback, through informal performance appraisals.
"One thing that came through quite clearly in the survey was that people were not getting the feedback they needed, so they could see where they stood within the firm," says Manthel.
"In many cases, there was a lack of a feedback mechanism. People like to be told what they are doing right and where improvements can be made. And, if they need to improve, employees need constructive feedback.
"There is nothing worse than having an employee sitting there with no feedback or performance appraisals because that can be soul destroying."
Manthel says annual reviews are often not enough to satisfy the needs of staff. He recommends reviews take place at least twice a year, perhaps four times a year, with monthly informal chats over a coffee, along with daily guidance and pats on the back.
Many of those who responded to the survey received no appraisals at all and Manthel puts that down to poor management, managers short of the time to carry them out and a lack of management training.
"Many managers have not been trained in how to perform appraisals and give feedback properly.
"And like most people, managers like to be liked and so find it difficult to give negative feedback."
But for firms that are fully staffed, career progression for a high performer can be limited or non-existent. Manthel has some clear advice for companies in that situation.
"It can be difficult. And, in a high percentage of these cases, the firm will lose that individual.
"They should recognise that a person has come into the organisation, has grown and they must realise there is nowhere else for that person to go.
"But plenty of people will stay in an organisation because they like the culture, their colleagues and manager."
He recommends companies offer those looking for more career progression external training courses..
"It all costs money but it is a way for a firm to keep its staff. But, more importantly, the survey shows that company culture is key for retention."
Manthel says all staff should be involved in setting and agreeing to company culture.
"While you can't dictate a culture to a company, because it evolves, you can get the staff to agree what the culture is going to be about, by agreeing on values that define the culture," says Manthel. "These cultural values aren't designed by management _ but collectively by the staff.
"So you can get an entire team to agree to some rules, like not gossiping. Anyone found talking about people behind their back could be reminded that it isn't in the culture to do that."
He says there is a real benefit when people know and understand a company's culture and what values people work to.
"And it is things such as culture, positive feedback and training that can overcome monetary issues," says Manthel. "When people enjoy their work, they go and have a good time. They might delay leaving long enough for the company to offer someone a new opportunity _ a good culture will encourage someone to stay for a further six to 12 months.
"Companies are not expecting people to stay there for life. But they are trying to extend people's tenure. Anecdotally, tenure has shrunk from three or more years to between 18 months and two years for people aged in their 20s. Older people tend to stay longer."
Ultimately, Manthel says work is a two-way street. While companies should start to help their staff plan their careers, offer training and provide a more supportive environment, workers need to play their part too.
"In return, a company expects its staff to be focused, keen, professional and willing to work hard for that organisation. Younger people should see their job as a massive opportunity and not as an entitlement."
Contact Steve Hart at www.stevehart.co.nz
