Effective Human Resource Management (HRM) is crucial in ensuring the growth and expansion of your Company. The importance of recruiting and retaining the best employees for your Company cannot be understated as not only will these talented professionals provide the innovation and creativity to take your business to the next level, cost savings from their efficiency frees up resources that could be channeled to raising your company’s productivity elsewhere.
HRM plays crucial roles in choosing the best candidates for your Company (Recruitment), ensuring the candidates can perform tasks well and are aware of the latest developments to raise their productivity (Training) and ensuring employees have the incentive to continue staying with the company (Career Progression). All of which are important in hiring and holding on to the most suitable workers for your business.
Benefit from an effective HR
PROBLEMS FACED BY EMPLOYERS TODAY
Unfortunately, in today’s day and age where job hopping has become the norm, it is increasingly difficult to retain talented individuals. According to Elliott Scott’s 2016 HR Survey, 51% of employees in Singapore have been working with their current employers for less than 2 years, which is higher than the global average of 48%. Furthermore, a higher likelihood of receiving a higher pay when leaving one company for another makes it all the more attractive for workers to leave for greener pastures. The constant need to retrain new workers to take on the roles of the previous employee makes hiring unnecessarily costly for firms. In fact, replacing a salaried employee costs the company 6 to 9 months’ salary on average (SHRM). The more skilled the employee is, the higher the cost of replacing them. The total calculated cost is derived from summing up separation cost, the cost from finding a new candidate, the cost of retraining the new candidate, lower initial productivity by the candidate and lower engagement from all other workers.
A survey conducted in 2016 by Hays, a global recruiting firm, show that 60% of surveyed job seekers expressed that the most important factor when looking for a job is work-life balance. Millennials in particular are highly lifestyle and family focused and are less willing to work long hours, unlike the generations before them. Many prefer more freedom and flexibility in their work which is further emphasised by a study (FlexJobs, 2016) that found that 82% of millennials are more loyal to employers if given more flexible work options.
“the difference between making and breaking your company”
Furthermore, as Singapore is becoming a super-aged society, middle-aged employees are becoming increasingly burdened with family commitments from aged parents. Being caregivers to their parents may require them to take many days off work on short term notice, which may not be possible with more rigid work schedules. The need to take care of children on top of that may result in them choosing to resign, to better look after their family. The risk of losing talented and experienced employees if they are not provided with the work-life balance they need could be the difference between making and breaking your company.
WHAT CAN BE DONE?
Provide A More Flexible Work Schedule
Raise your company’s staff retention rate by providing more work schedule options. Providing flexible work schedules that best suits the lifestyles of your employees who previously were unable or unwilling to work would provide above-average employees motivation to stay on with their job. Not only will this help in the retention of millennials who prefer more flexibility, it stands to benefit employees with young children or elderly parents who need the free time to cater to their family’s needs.
Flexible Work Schedule Options
Working for fixed number of hours per day with flexibility in reporting and ending work time.
- Remote Working
Working away from the office for 2 days per month
- Interim Transition
Transition from full-time to part-time work for employees who are unable to commit to more than 35 hours of work per week
Retaining/Hiring Mature Workers
Despite the negative stereotypes many employers have of mature workers, older employees are very experienced and have the potential to bring great insights to your business. As mentors, they are also capable of training the younger employees on the job, further value-adding to your company. Create a more age-friendly work environment for mature workers in your company to leverage on the skills and benefits they can provide.
Need Help Adjusting To New Arrangements?
At Optimuz, we understand that implementing these changes can be costly and challenging, especially for a company that is just starting out.
Our Human Capital Management and Mature Employee Management Programme are designed to help you implement the Flexible Work and Age-Friendly work environment for your employees by building a better and more conducive workplace. By signing up for these programmes, you will be eligible for assistance grants of up to $20,000 for Mature Employees Programme and up to $160,000 of grants and disbursement for the Human Capital Management Programme as well as $20,000 of IT reimbursement.
For more information, visit our programmes page at Optimuz Programmes and sign up now!