Retaining staff is 'just good business sense'

Date: 11/02/2010

Incentives and recognition may be the order of the day for a number of businesses in the UK following comments regarding staff retention and the impact of a lack of it.

HR Magazine's David Woods commented on the recent results of a study by Lester Johnson from Melbourne Business School, who partnered with Liliana Bove from the University of Melbourne in Australia to underline how it is more effective to invest in retaining good staff who are liked by customers.

Nodding towards the use of incentives and recognition or improvements in communication, the pair said that when one staff member leaves an organisation in a tertiary industry, it can suffer a 30 per cent drop in custom.

As a result, organisations need to pause on spending money on trying to lure new customers and focus on their own employees.

Mr Johnson concluded: "Keep hold of your good staff and you are far more likely to prevent the customers you can't afford to lose from defecting."

In a recent article for Pluggd.in, a HR worker recommended that recognition is needed on a daily basis, even if it is for regular work - so long as the applause is consistent.

Posted by Michelle Fry ADNFCR-2060-ID-19611637-ADNFCR

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Retaining staff is 'just good business sense'

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