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RETENTION - THE SURVIVAL KEY FOR START-UP


RETENTION - THE SURVIVAL KEY FOR START-UP
RETENTION - THE SURVIVAL KEY FOR START-UP

Comparing your business to a tree, then the employees are the cells that contribute to the growth or demise of that tree. Right, Human Resources - HR is a key factor determining the success or failure of a business.


For example, if you are lucky enough to have good staff for the job vacancy and working environment, it is a healthy cell that can bear fruit. On the contrary; if one of your employees gets into trouble; it will also lead to negative consequences for the others.


Therefore, recruitment is not an easy task. In fact, it requires experience, a bright outlook, and the spirit of partnership from the employer. According to our client survey in 2020, small enterprises and start-ups are easy to get problems with this issue.


Nevertheless, recruitment stops at hiring the right person?


The answer is no; moreover, it is just the beginning of a long process that requires more effort, time, and even wisdom. If you hire the right person and are luckier than competent, what's the next step? Have to keep them.


I. Staff turnover – a nightmare of every business


Staff turnover is when your business has to change employees for various reasons such as leaving on their own, getting eliminated due to unexpected results, etc. Of course, this would happen in all companies, but with reasonable frequency. The constant change of personnel, which employees come and leave frequently, is a sign of instability.

RETENTION - THE SURVIVAL KEY FOR START-UP
Figure 1: The volatility in the workforce will bring many weaknesses to the business

Some disadvantages of Staff turnover


- Unstable Workflow: the departure of the ex-employee and the replacement of the new employee need time to resolve the backlog, and hand over paper works, and instructions. During that time, it will be difficult for your business to run smoothly. Moreover, there will likely be major or minor disturbances before everything is back in order. In the end, the economic damages in that time, the enterprises will have to bear.


- Re-hiring causes a lot of loss: as you know, recruiting requires time, effort to find candidates, and even luck to choose the right person. So if that person quits, what to do next? Everything has to start all over again! And the effort and cost of this recruitment are not small, not to mention the economic losses when the position is vacant. But that's only for one person, and if it happens with a large number and frequency, then this is an unsolved problem because no one or department will be able to handle it.


In order to find a solution to the staff turnover problem, it is necessary to understand the beginnings of the situation. For an overview, the staff turnover comes from two sides: the employer and the employee.

RETENTION - THE SURVIVAL KEY FOR START-UP
Figure 2: Recruitment is not an easy task

From the employee's point, their job-hopping often comes from many reasons, but the most common one is dissatisfaction with the job, which depends on many different aspects:


- The first one is the dissatisfaction with the salary, bonus, or benefits received plus high work pressure, which requires time, qualifications, and relationships to solve. Perhaps this reason does not need to be explained too much because everyone understands a principle, benefits must go with responsibility. While the duties are high, the welfare should also be equivalent.


- The next one is the work-life balance. In our candidate research, employees have paid more attention to other aspects than work as time spent for themselves and their beloved people, physical health, mental health, etc. If the business does not meet those requirements, employees decide to change. Since this is a win-win relationship, both parties are equal, and if either side suffers disadvantages, they are willing to pull out and choose a new, more equitable relationship.


- Finally, a cause from generation, Gen Z - the current generation of young workers has more freedom in choosing their career path. Besides, they are willing to try in many different positions to find what they want. By doing this test, in each job, they will work for a short time. If they do not feel suitable, they are ready to withdraw to look for another. Some of them even decide to switch their jobs because they don't want to work in one place for too long. They also set a goal before the age of 30, how many positions they should try before settling down. On the positive side, this generation shows that they have a certain mindset about their career path, not only based on the salary but importantly, enhancing their feelings.


Meanwhile, at employers, the thing staff needs from you are not only salary but also respect.


Why respect? Because employees do not only work for money, although we can not deny that money is a prerequisite factor, but also because of the spiritual factor.


It would be better if you equip a positive working environment where everyone can cooperate happily, contribute to the success of your business and willingly share values ​​that help improve themselves.

RETENTION - THE SURVIVAL KEY FOR START-UP
Figure 3: A positive working environment is what your business needs

How to describe a positive working environment? We will have:

A psychological leader is willing to listen to employees' opinions, negotiate and give advice in need.

Employees not only feel they can only bond with each other through their work but also as friends and companions.


What will happen if you don't have the above factors in your organization; or worse, you are running a negative working environment where people only care about themself instead of the benefit of the team?

As a result, high staff turnover is not an easy thing to avoid.


II. Retention – the survival key for businesses


Staff Retention is a collection of business activities to "retain" employees to continue working. Furthermore, it's also the enterprise's effort to maintain a stable working environment with as few personnel changes as possible.


Achieving this requires cooperation from both businesses and employees. However, the benefits it brings have a direct impact on enterprises:


+ First, stabilizing personnel saves you time and money to recruit and train new employees. At the same time, when your employees get used to the job, they will help your business system run smoothly, rarely have unexpected problems, and if any trouble appears, experienced employees will help you deal with its in the best way.


+ Second, with frequent personnel changes, you will be unable to control the reputation and credibility of the business. Who knew that employees working in a short time have a good impression and spread positive information about your business?


+ Last but not least, how to keep important information confidential? Employees will know inside information, and maybe some of it is important as business relationships, suppliers, etc. The fact that when they leave, whether in a state of joy or hatred; we cannot guarantee that information will not be exposed.


For Startups and small-medium businesses, remember that you need personnel, but are not sure that they need you because they have lots of options.

RETENTION - THE SURVIVAL KEY FOR START-UP
Figure 1: This is an equal and mutually beneficial relationship

So think of this as an equal and mutually beneficial relationship: you help them get a job and earn money, and they create your business's success. If this is a good foundation, your business will thrive. Otherwise, it will collapse after only a few small storms.


Understanding the importance of Staff Retention, the JT1 team pays great attention to the satisfaction and attachment of members to the team. Specifically, from 2020 to 2021 when the world is facing the Covid-19 pandemic and economies are heavily affected, the JT1 team still maintains the old number of members and has new members.


So why can we do that?


When businesses massively cut staff to reduce costs, we not only do not eliminate but also welcome more members?

RETENTION - THE SURVIVAL KEY FOR START-UP
Figure 2: JT1's employment situation during 2020 - 2021

The reason that JT1 understands employees are the fundamental factor in building and maintaining the success of an enterprise. When the economy is struggling, businesses are also inevitably affected, but we understand that this pandemic not only affects our interests but also affects the lives of our team members and their families.


We always put human philosophy in the first place and for that reason, despite facing many difficulties in the past two years, the team still tried to unite and overcome this pandemic.


This is also the factor that helps members empathize with the current situation during this crisis and motivation for them to accompany the team.


This is also the factor that helps members empathize with the current situation during this crisis and motivation for them to accompany the team.


"There is no happiness in having or in getting, but only in giving" – We give sacrifices to receive the sympathy and efforts of our members. Maintaining stability during the epidemic is extremely difficult when more than 85,000 businesses have left the market, but we have done it, with strength, sympathy, and faith. And we believe, when you come up with a suitable HR strategy, you can do it too.

RETENTION - THE SURVIVAL KEY FOR START-UP
Figure 3: JT1's year-end party

Here are some tips for you


1. Listen and empathize with employees:


Although it may not help completely, at least understanding the thoughts and aspirations of employees to partly make appropriate changes will help them feel respected and shows that you, as a leader but also as a companion, have concerns about your members.


Especially when the situation of the Covid-19 epidemic is still complicated, the economic and life burden not only falls on the shoulders of leaders but also on the shoulders of employees and their families, so understanding, sharing, and getting through together is the best way for all to survive this crisis together.


Moreover, a small gift or allowance is also a way to show your attention to those who are dedicated to your business. For the most part, it is extremely difficult to keep your employee's salary completely during this time, the solution is to present the situation of your enterprise and make arrangements such as installment payments or arrears of wages, etc.

As long as you show them presented transparently as well as highly persuasive, employees will somehow understand and sympathize with your business if you do not let them suffer.


2. Build a positive working environment:


There is no more perfect environment for your employees to reach their full potential in various aspects than a positive working environment. A competitive working environment will motivate employees, but they only focus on developing their strengths to be the winner, but cannot fully exploit the other potentials hidden inside. This inadvertently makes you not only waste talent but also inadvertently push employees into pressure that can cause them to collapse at any time. For example, like a domino effect, when the dominoes fall, your business will fail.


At the same time, you should build a fair and progressive working environment where employees' contributions and accomplishments are valued but not pressured into making them feel oppressed or competitive.


Let's create a competitive environment that is fair and positive to develop your business as well as your employees. Besides, positive feedback is also a way for members to realize their shortcomings and make changes to become better.


3. Additional training and team-building activities


At this time, work is stalled, instead of complaining, take this time to improve the knowledge and soft skills of your employees. When everything is back to normal, this pandemic is over and life returns to the way it was before, your employees will have better skills and working attitudes.


Besides, team-building activities are also great solutions that help team members connect more. It can be an online meeting for everyone to share their life during the epidemic or the difficulties they are facing. The rate of people suffering from psychological problems by staying at home too long during this epidemic is very high according to experts, and these small activities can partly help your business limit that number.


When life has returned, let's organize team-building activities such as traveling in combination with games or parties. These things will promote people to understand each other's personalities and characteristics better and improve teamwork.


III. Conclusion:


No matter how famous or large your business is, the employee is the key factor to making and continuing that success. Without them, you can not do anything.


JT1 team | 2021

Đọc thêm: Why Vietnamese Developers are the top of Asia?

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JT1 - Leading IT Recruitment Agency

Website: https://www.jt1.vn

Email: hi@jt1.vn

About our Employers: https://www.jt1.vn/employers

Phone: +8428 6675 6685

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