Navigating the job shopping era: Effective employee retention techniques

In today’s job market, where “job shopping” has become the norm, retaining employees has become increasingly challenging. With rising salaries advertised by competing companies, many employees are tempted to explore better-paying opportunities. However, offering higher salaries may not always be feasible for employers, especially considering the current economic climate. In this blog post, we will explore effective strategies for retaining valuable team members and ensuring they are advocates for your company.

Understanding job shopping:

Job shopping refers to the practice of employees or candidates exploring multiple job opportunities from different companies, often with the intention of receiving a higher counter offer from other or their current employer.

According to SEEK, a leading job search platform, last year, the way to get a better pay was to switch jobs. And as of April 2023, advertised salaries continues to outpace overall wages, prompting employees to engage in job shopping to improve their financial prospects. In fact, 60% of Australian employees and 67% of New Zealand employees have either considered leaving or have left their current jobs in pursuit of a better salary.

The risks of job shopping for employers:

• People leaving for more salary, increases the workload for remaining employees.
• Company memory is lost, especially if it’s your high tenured employees leaving.
• Loss of customer relationships in some industries.
• High turnover implies a lack stability and security which can be de-stabilising for employees and potential candidates.
• Overall profit downturn, due to the higher costs associate with hiring and onboarding new employees..

Retaining employees without offering a pay raise:

While offering higher salaries is an obvious retention strategy, it may not always be feasible. Here are our alternative approaches to consider without immediate pay raises:

1. Revisiting the pay rise question: Maintain transparent communication with employees who request a pay raise. If you cannot fulfil their request due to economic reasons, assure them that you will revisit the matter in the future when the company’s financial position improves. Schedule a follow-up conversation to discuss their progress, you’re relying on the trust of your employees, and for them to enjoy their job enough without the rise so it’s important to remember to have the conversation again so you don’t break their trust. You can also explore alternative options, such as a title change that acknowledges any increase in responsibility or contribution.
2. Are you developing your whole team? Are you looking at the next generation of workers? Offer training and development programs for your entire team, enabling them to take on additional responsibilities and fill potential gaps left by departing employees. By investing in their growth and career advancement, you can demonstrate your commitment to their professional development. Don’t forget that workers find their role most satisfying when they are encouraged to grow professionally.
3. Recognise and show-off your tenured employees: With the increase in inflation and rising interest rates triggering talks of a slow-down or recession, people are looking for work in secure companies where they can feel safe. In fact, a staggering 88% of workers are more like to remain in their current roles for the sake of job security, which also contributes to overall job satisfaction. This presents a unique opportunity to highlight the tenure of your current employees. Those who have been with your company for five years or more serve as a testament to your organisation’s stability and security. By implementing an effective rewards and recognition system, you can show appreciation for their loyalty and create a company culture that values and celebrates long-term commitment.
4. Create a positive employee experience: While it’s inevitable that some employees will leave your company, it’s essential to create a positive employee experience during their tenure so that they depart as advocates. The best employees are often the ones who can attract and refer other top talent, making referral programs a valuable tool to encourage word-of-mouth recommendations. Additionally, conducting exit interviews with departing employees can provide valuable insights and identify areas for improvement within your business.

Other things to consider:

As an employer, it’s crucial to ask yourself pertinent questions regarding each employee’s needs and desires. Recognise that these requirements may vary from person to person and may not always revolve around salary. Consider what will bring them happiness and success in their jobs, careers, and lives. By addressing these individual needs, you can enhance employee retention and satisfaction.

While employee turnover is inevitable, employers can take proactive measures to retain valuable talent and ensure employees leave as advocates for the company. Remember, ongoing communication and a genuine commitment to employee satisfaction are essential in this endeavour.

If you’ve recently experienced changes within your team and need additional talent, don’t worry! We’re here to lend a helping hand. Let us know who you’re looking for, and one of our friendly and specialist consultants will be more than happy to assist you in finding the perfect people to join your team.