The real value of any business lies in the team, the people who come to work and execute on the business to the best of their abilities. Their objective is to create a great customer experience so the brand and reputation of the business remains intact. The question is: how do you keep your team intact so that your best talent doesn’t get head hunted by another organization?
During the most recent boom in Saskatchewan, many employers had a difficult time filling their ranks. Simply put, demand outnumbered supply so those winning the battle to fill their ranks with good employees had to be doing something different. What was it that they were doing to attract and retain talent on their team?
The answer to the question is not simple; rather, it is a combination of a number of activities or initiatives. It takes a lot of work and effort to become an employer of choice. First and foremost, you need to have a good culture and environment where new members can fit in, and where existing employees want to stay. It’s not IF your best talent will get approached by a headhunter; it’s when and how often. The culture and environment begins with respect and appreciation for your team.
In addition, your compensation and benefits package must be competitive, and you need to ensure that your employees are aware of all the hard and soft costs you pay on their behalf. At the very least, this needs to be communicated yearly to your team members so they know and understand their package. Many times, employees will not join a retirement savings program sponsored by the employer unless they are encouraged to do so. This package is usually a matching contribution plan, e.g. the employer puts 5% of an employee’s salary into a plan and the employee matches it. That’s a 100% return on an employee’s money just by participating in the plan. Believe it or not, I know of employees who did not sign up for a plan due to their not understanding what was being offered. The time value of that money over the years could result in tens of thousands of dollars available for the employee at retirement.
Some employers have made financial planners available to meet with their employees to provide for that education. Most often this is done during on-site employee meetings or via Zoom meetings. The point is that it is a perk or another hinge in your door of the attraction and retention of good talent. A retirement program offered through work is much more important today than it used to be due to the tightening of talent in the marketplace and the demand for such programs. In the past only large companies offered them but now everyone needs to participate or an employer is vulnerable to losing their best talent.
Another important tool in the attraction and retention of good employees is a strong employee benefits program, including Life Insurance, Disability Insurance, and Health and/or Dental benefits. Most employers have a program in place but for those who don’t, they typically get one after missing out on a good hire and/or losing one of their key employees to another employer.
There are many other areas I will cover in next week’s blog. I hope you’ll join me for the next edition of Intentional Success.
Clifford A. Wiegers, CFP, TEP, Ch.F.C., CLU, B.Comm.
Insurance Representative, Wiegers Financial and Insurance Planning Services Ltd.
Financial Planner, Manulife Securities Investment Services Inc.
The opinions expressed are those of the author and may not necessarily reflect those of Manulife Securities Investment Services Inc. Mutual funds are offered through Manulife Securities Investment Services Inc. Insurance products and services are offered through Wiegers Financial & Insurance Planning Services Ltd. Banking products and services are offered by referral arrangements through our related company Manulife Bank of Canada.