By Becca Wilson
Rising inflation and competitors offering lucrative packages means staff retention is becoming more difficult.
Staff retention in the Middle East is getting more and more difficult.
The rising rate of inflation and competitors increasingly lucrative packages, are forcing those employees currently working for companies that are doing nothing, to jump ship.
These companies either don't realise or simply don't care about the impact this can have on the company's bottom line. For example, money spent on training is being reaped by other companies, relocation packages and visa costs are wasted and client relationships need to be started from scratch each time a person leaves.
As reported in the article ‘Latest measures for keeping hold of staff', money is not always the key to staff retention, said Ian Tarry, regional director, Mace.
"We've seriously had to revamp our housing allowances. And we're investing heavily in training. We're trying to demonstrate that there's a career path with the company and a reason for being at Mace, as opposed to giving more money to people - sometimes, money's not always the answer."
And maybe he's right? Although people's wage should reflect inflation and rising living costs, investing in their career and giving additional benefits like housing, could earn some brownie points and discourage employees from looking elsewhere.
We were discussing this topic in a way on one of the business networking sites, and I brought up a point that seems to always go amiss here. When discussing retaining staff and why there is a brain drain happening etc, no one is taking into account that there is a unique nature of employees (so many of them, that it is reaching stereo type status) in the gulf... these employees fall into the bracket of 'money train' or money wave riders.. they came in on some misguided advice that it was easy money here in this region, and it could be made by being lazy and laid back. These are the ones that companies are finding hard to retain, as these are the employees that find it is getting increasingly hard to cope with the lifestyle etc, and are now forced to leave in droves... and for no reason other than, they cant cope with the discipline and hard work needed to survive in this day. This variable needs to be factored in when doing any research and generating statistics on topics such as Staff retention, morale building and talent drain.
You have put the pivot on staff or employee loyalty. The idea is how to keep them. We are not talking of loyalty. Even Enron had but where is now. Did not the woman loyal to the corporation shred the documents? The best way to retain staff is not a short-term look but a very long-term sight. What will I do if I do not have the staff? That ought to keep many employers to re look at the employeesâ€™ retention. Pet them occasionally in public. Gift them. Remember if employees wife is sick, ask about her, even if you have two thousands employees. The same things matter more. If you lose these, you lose a lot. I thank you. Firozali A MUlla MBA PhD
I think there are two issues that need to be discussed, one which is in employee favour and the other in employer favour. Further we need to balance how you would retain for those employees that are using monetary gains as a threat which would have a detrimental effect on those that are loyal with the company. I would also like to do more research on what are the main causes for employees leaving an organisation?, how can we provide an action plan to tackle this. Is it the Benefit package, the work life balance, the unfair evaluation, etc..
Money is one major issue! I like most people was promised one thing and given another. Companies here don't care about their staff; they would indeed prefer to throw money down the drain hiring and recruiting then caring for their current employees. Company politics in regards to promotion are 30 yrs behind the rest of the world; most companies prefer to recruit then promote from within. Why bother staying in a company that doesn't give bother to look after its staff? Wake up UAE. With current dollar trends and people throughout the world wising up to the scams employers are doing, it won't be long till you are forced triple current salaries to get people to relocate here.
There are many reasons that people leave companies here: 1. Lack of opportunity to advance within the company 2. No in-house training or incentive to take outside courses to enhance skills that would ultimately benefit the employer 3. Reticence by experienced staff to share knowledge - in case they lose their position. 4. Contract Packages that have been stagnate - no increments to offset the spiraling inflation 5. Breaches of contractual rights. Employment is a two way street - you get what you give. Those firms who consider employees an asset to the company and treat them accordingly have no problem retaining staff. Unfortunately, firms of that stature are the minority and not the majority here. Employees who feel they are valued give generously to their employers. People have become more interested in money than in those who generate the wealth for them - the workers.
The Company law has a chapter LAW of minority that is when the major shareholders try to bully the minor shareholders. That is in the books. I do not see this in the employers and employees. I agree if you peanuts you get monkeys but that are too not available in many places. IN USA the CEO get a big handshake even when the corporations go kaput. I do not know how they do this. Now that economy bleeds. Why? Employees left out. Bangalore is now Indian Silicon Valley, Away from the USA California. Why? The pay, the patriotism or just to live in culture?