Staff Retention in 2023/2024

Staff Retention

When IBEC published its report this month showing the findings of their survey with industry leaders one of their key findings was on staff retention.

Cultivating talent from within or retaining talent that have been developed is one of the key challenges facing all industries in Ireland. The cost of living will drive certain behaviour within the workforce and the survey also showed that employers expect to pass wage increases to their staff in 2024.

For companies with a Global presence and have sufficient margins passing on increases isn't as straightforward as it seems. Every company, large and small, has their financial model and a budget that allows them to allocate their resources accordingly. They have to be disciplined and work within their own guidelines.

For Small and Medium Enterprises (SME's) that challenge can be even more acute. Often large multi-national companies offer other benefits that are beyond the reach of SME's financially and these can be looked at covetously by those in the SME sector when making decisions about their careers.

Ireland has a competitive marketplace when it comes to talent and has a highly educated and skilled work-force. The economy has grown so much since the economic crash of 2008/9 that more and more people are coming to live here to fill the talent gaps.

Money can only be one piece of the motivation pie for professionals. Yes, bills need to be paid, and it's reasonable to expect that we should all have a few bob in our pockets to go to a match or a concert when we want to.

What other motivations could there be especially for those working in SME's currently?

• The Multinational sector in Ireland could not exist without SME's - local suppliers with expertise and skin in the game have the agility and flexibility that comes from having a small team with a strong customer focus

• When working in SME's the pace of learning is accelerated because there's more to be done and there are easier insights to other departments and other customers

• Feeling successful can come more readily from being part of a small team solving complicated issues.

• Usually in an SME, the visionary behind the company is the Leader/Managing Director - and his/her team gets daily contact to learn first hand on how to handle issues. These become life-skills. There's a connection with the Leader.

• We learn about responsibility and how to manage it on behalf of the company and its owner.

• There is usually more autonomy to be creative and get the job done.

So there are downsides to working for an SME, like every other industry sector, but sometimes the downsides are over-emphasised and this can effect staff retention at SME's.

In casual conversation I've often heard people say - I loved working there in that small company, I wonder should I have left.

Far away fields are often greener until we land on our feet. Money isn't always the primary motivation then if staff are moving on there may be other issues worth exploring and taking the time to figure these out may help improve staff retention.

Coaching is a very effective way to get a handle on what you want most from your career and from your team.

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