What Can Private Businesses Do to Attract and Retain Talent?
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The PwC Private Business Barometer report emphasizes that attracting and retaining talent is a major challenge for private businesses in Australia, particularly due to competition from larger firms and economic uncertainties. It suggests strategies such as offering competitive salaries, creating flexible work environments, and fostering employee loyalty through equity offerings and recognition programs. Additionally, businesses are encouraged to maintain engagement with former employees and conduct exit interviews to better understand retention challenges.
What Can Private Businesses Do to Attract and Retain Talent?
- 1. What can private businesses do to attract and retain talent? www.privatebusinessbarometer.com.au
- 2. PwC 2 November 2010 About the Private Business Barometer The PwC Private Business Barometer is a national, independent survey of more than 1000 Australian private businesses with an annual turnover of between A$10 and $100 million. Released twice a year, research for the current edition was undertaken by Roy Morgan. The Private Business Barometer explores four key areas of importance for businesses: growth, funding, people and operations as well as topical issues of the day.
- 3. PwC 3 November 2010 Human, not financial capital, is the key to business growth… Private Business Barometer VIII
- 4. PwC 4 November 2010 Retaining and attracting staff is the biggest issue for private businesses today. Why is this so difficult? What are the challenges facing private businesses and how can they be overcome? Private Business Barometer VIII We’ve done the research and talked to private businesses to review these challenges and explore the possible solutions for businesses. Here’s what they said…
- 5. PwC 5 November 2010 What are the challenges?
- 6. PwC “SMEs don’t have the luxury of retaining staff that don’t perform.” “Bigger businesses tend to be able to retain staff and coach under-performers to enhance their contribution.” “You can’t hide the lack of skill, productivity and efficiency in a small to medium business that a non-performer brings.” 6 November 2010 Performance is key
- 7. PwC Money talks November 2010 7 47% “It’s not unrealistic for staff to jump ship for what appears to be a better offer and a remuneration package at big business rates.” “Big salaries in small businesses are hard to sustain.”
- 8. PwC Is this as good as it gets? 8 November 2010 “The industry standards for staff in some sectors are low and SMEs are forced to keep on under- performing staff simply because there is a talent shortage.” “Certain geographic regions like Darwin and the ACT have very low unemployment rates and compete with Government agencies which, in unstable economic times, provide a safe haven that appeals to candidates.”
- 9. PwC 9 November 2010 How has the economy impacted the situation?
- 10. PwC What impact has the GFC had? “Candidates are nervous and security has become more important.” 10 November 2010 “This means candidates are less likely to move, so attracting them is more difficult, so private business are adopting more creative ways to attract talent.” “Candidates perceive SMEs as the less stable option which makes them more of an uncertain bet.”
- 11. PwC 11 November 2010 Correspondingly however… “During the GFC larger companies also became less stable.” “Where SMEs might make a cut or two to staff and tend to operate much more leanly, bigger companies cut entire departments.”
- 12. PwC What strategies can you use to retain staff and remain competitive? 12 November 2010
- 13. PwC Shout about what you’re doing well November 2010 47% “If you pay above market rate, make it known.” 13 47% “Small to medium businesses tend to be more flexible. Offer flexi-time where possible and remember to think mobile – in most instances staff can work from anywhere given the right tools.”
- 14. PwC 14 November 2010 “SMEs can often offer much more challenging opportunities for candidates through increased exposure to the entire business, not just one area. Allowing candidates to develop a broader skill set, and deeper connections with the business.”
- 15. PwC Invest in staff and you’ll benefit too Business coaches grow your Talent and your business at the same time. Make sure you’re in tune with where staff place value. You may be spending dollars in the wrong place. Bring people in and train from the ground up. It’s cheaper and they’re likely to be more loyal to your organisation. 15 November 2010
- 16. PwC 16 November 2010 Let staff invest in you “Equity is an enormous attraction for candidates and in equal parts is a reason to stay.” “Staff who have a vested financial interest in a business stay longer, work harder and are naturally more loyal.”
- 17. PwC Create an Employee Value Proposition that works internally and externally November 2010 “Keep your external offering one that people are proud to be part of and aspire to work for.” 17 47% “Create a synergy between your brand and your employer brand, this will make you more credible in a cluttered market.”
- 18. PwC Don’t forget to give back 18 November 2010
- 19. PwC Charity begins at home November 2010 47% “Don’t underestimate the power of good will. Rather than buy tickets to charity balls, send your staff on trips to get involved and help out the charities you support.” 19 47%47%“They’ll get more out of it and see value in your business beyond commercial motivation.”
- 20. PwC Reward and recognition “Short changing your staff is counter productive in the long run.” “Provide clear career paths and opportunities.” “Reward a job well done and praise when appropriate. Salary is less important when staff are satisfied and acknowledged.” 20 November 2010
- 22. PwC November 2010 “Don’t burn bridges. Sometimes candidates need to move on so you can both grow.” 22 47% “Keep a dialogue with staff that leave. Set up a social media Alumni Group and keep it active. Keep track of good candidates and keep them informed of your changes and growth as a business. They may just come back.”
- 23. PwC Use a departure to understand your business better Conduct an exit interview. Get as much information on what was good, bad and ugly about your business as you can so you can learn from it. Review the situation before you hire someone else. • Is the business structured correctly? • Has the market moved on? • Have the skills you need in your next hire in a particular role changed? • Is there someone internally who could be promoted to fill the position? 23 November 2010
- 24. PwC 24 November 2010 www.privatebusinessbarometer.com.au To find out more: © 2010 PricewaterhouseCoopers. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Australia, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity