The way we work is changing rapidly. Technological advances have transformed the way we do business to operate on a global scale. In addition, our working environments are different and many people respond to their work emails before they even get out of bed in the morning.
This shift in our working patterns is accompanied by a change in our career paths. Traditionally, many employees would start work for an organisation upon leaving school and would stay there until retirement. However, the Telegraph reported in November 2015 that the average adult will have six jobs in their lifetime and a massive 46% of people will quit their existing job at some point during their career and completely retrain. This all presents a challenge for businesses, talent planning. How do you identify and retain key people with the talent and commitment needed to drive the business forward?
So how does this impact your business?
Recruitment is a significant cost for any organisation with the average cost of replacing a member of staff reported to be around £30,614 per employee (including costs such as agency fees, advertising and wages during the time before the new employee hits optimum productivity levels). In the circumstances, it would be reasonable to expect that employers would do all they can to retain staff. However, the Employee Outlook Survey (CIPD 2016) found that a third of employees felt they were unlikely to be able to fulfill their career aspirations in their current organisation. In addition, the CIPD Research Report, Attitudes to employability and talent (CIPD September 2016) found that almost 3 in 10 respondents only provide opportunities to enhance careers to some workers and 3 in 10 also do not provide any external development opportunities to employees. In addition, 7% do not provide internal opportunities to employees.
We frequently hear from organisations that are keen to invest in training staff, to develop them and so embed them within the business. However, employers can also be reluctant to “throw money away” when the staff member might go and work for a competitor.
Talent planning – how to protect yourself?
Have a clear strategy – All too often complaints are made that opportunities are only provided to “favoured” members of staff. A clear talent management plan will ensure that you do not have any skills gaps and that all members of staff are being considered. In this way, you can establish a varied skill set and protect yourself from any potential discrimination claims where it is perceived that an opportunity is not offered due to a protected characteristic.
Contract, Contract, Contract – The law imposes limits on your ability to restrict an employee’s freedom to work elsewhere and an employee who is working for you under duress is unlikely to be productive. However, there are basic steps that you should take to maximise your protection. This includes a suitable contract of employment with a repayment obligation in relation to training or course fees if an employee moves within a set period of finishing the course and restrictive covenants to prevent an employee taking their skills (and your clients) to your competition.
Look within – The CIPD Research Report, Attitudes to employability and talent (CIPD September 2016) found that most employers consider their older workers (55+ years old) to be highly skilled, to have a good connection network and to be a good fit with organisation values. On the other hand they found young people (16-24 years old) to have high potential and a great desire to develop. Your existing staff are a unique asset for your business. Make use of your experienced staff to train and develop your younger team by devising coaching and mentoring programmes. This training will have minimal cost, but the unique benefit of being tailored to your business. In addition, employees that feel invested in are more likely to stay with the business long term and through the mentoring, will develop relationships with your clients that could later be central to succession planning within the business.
Our employment solicitors work in partnership with organisations to improve their HR practices and advise on employment issues. To discuss this article or any other HR issue call 01392 210700 or employment@stephens-scown.co.uk.