All change?
Many employers find it difficult to keep staff turnover under control. Hiring people with the right skills and right cultural fit is just the start. Having found talented people, it pays to keep them motivated and loyal.
Given Germany’s resilient economy and the inverse demographic pyramid, highly skilled employees are becoming more likely to move on to new opportunities elsewhere. Companies that expect employees to produce high-level results, and hope to retain top performers must reward them accordingly. In today’s competitive environment, however, revenue-based incentivization systems no longer meet the requirements.

As the recent financial crisis showed, bonuses based on quick sales create the wrong incentives – and have the potential to ruin companies and entire economies. If overarching business goals are not included in methods of evaluating staff performance, companies may suffer as a result.



Strategic employee management

Companies that view their staff as mere assets or, worse still, a drain on costs, encourage them to head for the exit. In contrast, people who feel a social or emotional bond with their employers align their personal goals more closely with those of the business. Incentives designed to foster this connection strengthen commitment, enhance the company’s image, boost revenues and increase customer satisfaction.

A well-rounded and sustainable approach to HR management takes both hard facts and soft factors into account. It provides employees with an environment that promotes loyalty. There are a range of tools that can help achieve this, including career development systems, flexible working hours, value-added employee benefits (such as company pension plans, childcare facilities, etc.), suitable management styles, an appealing work space and workplace, skills development opportunities and promotion prospects. But to be successful, they must be selected in line with specific business imperatives.



Loyalty against the backdrop of structural change

In today’s fast-paced, high-pressure markets, employees are expected to display exceptional flexibility. At the same time, personal motivation and team spirit are vital. But if the gap between employees’ needs and the harsh realities of business life becomes too great, loyalty and commitment will diminish. To counteract this risk, human resources management must pay attention to how structural changes are affecting the sometimes conflicting needs of the business, the individual and demographics.



The cost of staff turnover

Nowadays, top talent is often lured away by the tempting prospect of improved pay and conditions elsewhere. Some managers believe that persuading want-away employees to stay is a waste of effort. But finding a replacement is expensive. Managers are left counting the cost of advertising vacancies, viewing applications, interviewing candidates, showing new recruits the ropes, and hiring temporary workers to plug gaps. And if the new recruit does not prove to be up to the job, the whole process begins again.

Consileon helps businesses put systems in place to ensure sustainable HR management. We are a long-term project partner in many sales-driven industries, and highly experienced in performance-based compensation models and incentivization systems. We can help you refine and improve your systems. We enable customers to achieve their goals by:

strengthening employee loyalty
lowering costs associated with staff turnover
implementing a robust incentivization system
ensuring visibility into compensation models and commissions

We achieve those by:

examining staff turnover costs
analyzing internal factors
suggesting alternative commission models
simulating financial effects
supervising implementation

Source: http://www.consileon.com/your-needs/business-operations/employee-motivation-and-loyalty