You may remember this line from the popular 1999 movie Office Space. The main character, Peter Gibbons, says it to two outside consultants (the “Bobs”) hired to evaluate employees and recommend layoffs inside a company poisoned by a toxic work environment:
“My only real motivation is not to be hassled—that and the fear of losing my job. But you know, Bob, that will only make someone work just hard enough not to get fired.”
Your SMB’s work culture is probably much healthier than the fictitious one in Office Space. But if you are not taking care of one of your most important resources—your talent—you will face similar motivation and turnover issues.
Many small and medium businesses already are. A study by the job board Indeed reports that 65% of people start looking at jobs on their website within 91 days of being hired. That number only gets higher for your key talent: 50% of your new hires who earn $100-110K a year start looking at new jobs 28 days after you hire them. The bottom line is that the overwhelming majority of employees are checking out new opportunities. As the Indeed reports states, “There truly is no such thing as a passive candidate anymore.”
So how do you work to keep this from happening at your SMB? You need to nurture and manage your talent. You need a fully integrated talent management program—one that provides you with the ability to:
Before you can start recruiting, you need to identify the most talented and qualified candidates. Many small and medium businesses struggle here, but this is a critical first step. Companies that hire the top 20% most talented candidates frequently experience a 20% increase in sales, according to a recent Gallup report.
So how do you find the most talented and qualified employees? Well, successful high-growth SMBs use a combination of social media, video, and mobile technologies to promote not only opportunities, but their unique employer brand, to ensure that they reach the widest possible candidate pool. Then once you have reached the candidate, you need to make it easy for them to interact and apply. Allowing job seekers to apply via mobile devices and incorporating video into online job ads is key.
While pay still rules, toady’s employees expect more than just a steady paycheck. This is great news for SMBs—which often cannot match the compensation levels of large, multi-national corporations.
Everyone still needs to pay the bills, but company culture and a “sense of purpose” are becoming much more important for employees. For example, the #1 reason employees say they’re considering taking a new job, according to Gallup, is the opportunity to “do what they do best.” That’s why it’s increasingly critical for companies to not only monitor benefits and compensation, but to fully understand the contributing factors of employee attrition through a robust set of analytic and collaboration tools.
Companies that focus on increasing employee engagement increase revenue per employee by 18%. Proper onboarding, ongoing training and career development can improve engagement and employee satisfaction. Career advancement is the #1 reason employees join an organization, according to a Willis Towers Watson study.
But you must walk before you can run. Without a solid onboarding process (and this is different from an orientation program) your SMB may never approach the career-development stage.
Which brings us back to Peter and “the Bobs.” If you expect more from your employees than working “just hard enough to not get fired,” you’ll need a focused approach to performance and compensation management. Employees who feel valued and receive clear guidelines on their responsibilities will likely perform at a higher level and stay onboard longer.
High-growth SMBs are paying heed. More are opting for continuous performance management rather than annual reviews, according to a Deloitte report. They’re also realizing benefits by providing advancement opportunities through succession planning.
If you haven’t adopted an integrated talent management program, your employees may be spending more time looking for their next job rather than driving growth. The good news is that Oracle Talent Management Cloud and Human Resources Cloud give you the tools you need to increase retention, boost performance—and keep “the Bobs” away.