With many expats priced out of their lifestyles, how do companies entice employees to stay?
By Asma Bajawa Special to GN Focus
The year began with a feeling of economic uncertainty that has already had an impact on the job market. In every sector, companies are tightening their belts; in finance alone, it has been reported that there have been 1,500 jobs losses across the region in recent months. In a region where increments and bonuses are almost seen as a given regardless of performance, companies now have difficult decisions to make. So what does this mean for organisations that want to keep good people but don’t have the resources?
There is no one-sizefits-all answer. The region’s workforce is made up of a diverse range of nationalities and cultures, on top of which is the added complexity of managing different generations that are motivated by different things. This is significant when it comes to developing strategies for employee retention. The decision to stay or go can often boil down to how an employee feels about the organisation. Here are some talent retention strategies that should be embedded into a company’s dayto-day HR practice.
1 Fair pay Paying people fairly can go a long way towards motivating and retaining them. Differentiating salaries by nationality is widely practised across the region, but this can create high levels of disengagement, lack of motivation and segmentation within teams. On a positive note, more organisations now recognise this as a real issue that can’t be ignored. The exception to this is nationalisation, where positive action in the form of additional benefits has proven effective in retaining Emirati talent.
2 Staff-friendly policies HR policies can contribute significantly towards employee retention, especially when budgets are tight. Flexible working options and employee welfare schemes are increasingly important to all staff. In addition, specific retention policies can be very effective. Proven examples are enhancing end-ofservice benefits beyond the minimum legal requirement, rewarding employees with extra leave for longer periods of service, or introducing retention payments for key employees.
3 Flexible benefits Innovative and flexible benefits schemes can help a company attract and retain staff through tailor-made packages suited to their personal circumstances. This approach can be managed within the same cost base and allows employees to pick according to their own situation.
4 Growth and development This issue is not specific to difficult times but is definitely one that a lot of employees — and particularly ounger ones — ask about at the interview stage. Unlike the older generations where job security was the main concern, the young look for their own ROI from the organisation: What do I get in return? Can I learn, develop and grow? Is the work rewarding and will it challenge me? Unfortunately too many organisations still look outside when it comes to recruitment, instead of considering and developing internal talent. By creating growth opportunities for existing employees, an organisation can expect a positive shift in retention.
5 Relationships Perhaps most importantly, the relationship between an employee and their manager can have a profound impact on his or her day-to-day life, not only at work but also at home. If an employee feels their manager is supportive, values their contribution, and supports them when things don’t go so well, they are more likely to stay with an organisation. Regardless of how well you pay an employee, if these human factors are missing, employees are unlikely to commit to the organisation in the long run.