How to keep good staff – and keep them happy

published 14 May 2014

IT'S a business no-brainer, yet so many get it wrong. The sure-fire way to get happy customers is to have happy staff. Conversely, the fastest way to lose them is to have dispirited employees who deliver poor service. Just one bad interaction with a demotivated team member is enough for a client never to return, and worse, tell everyone about the experience. Word-of-mouth advertising can be one of the most valuable assets a business has, but if it turns negative it can be a nail in the coffin for a start-up. For this reason it is essential for a growing business to keep staff enthusiastic, motivated and genuinely evangelical about the company. So how is it done?

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Darryl Mydat, managing director of the recruitment specialist the TLTP Group, says: "Often it is not the additional benefits that are key to attracting and retaining good staff. Fair pay, a good working environment, the opportunity to be praised and rewarded for outstanding individual performance often make staff feel more valued and trusted and, critically, that they have an individual interest in the long-term growth and performance of the business."

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Similarly, one of the quickest ways to lose staff is failing to recognise those who show initiative and go above and beyond the requirements of their role. It can be easy for busy managers to overlook such efforts so a formal and fair system of regular appraisal and feedback is essential, and it should be a two-way conversation. Having a support network for staff can also pay dividends. Julian Hall, the business consultant and founder of calmpeople.co.uk, says: “Often employees would prefer to have less stress than have more money. Employees appreciate a support and development programme more than any gift they may have been offered to incentivise them.”

Changing family circumstances and other personal considerations mean that the needs of employees will change over time, and wherever possible you should accommodate them. If you neglect to do this you may present talented employees with no choice but to move to a business that will, especially in an SME where demands on staff may be higher than a well-established company.

According to research from RingCentral, the cloud-based telephony provider, a third of UK workers are now working more than ten hours a day, with a short break or none at all. Lars Nordhild Rønning, general manager EMEA, says: “Keeping staff happy is no easy feat for SMEs. The working environment has drastically changed in the past few years. In such a tough business climate one of the best ways to retain staff and keep them happy is to give them the flexibility to work remotely, as this allows staff to fit their working lives around personal priorities, such as school-runs and health appointments.”

Retaining talented employees is especially difficult for SMEs because promotions and pay rises may simply not be an option for a growing business. There are, however, other ways to motivate staff. Marielena Sabatier, CEO of Inspiring Potential leadership development, recommends using non-financial rewards that add value. “Intelligent SME owners will succeed at holding on to good people by keeping them motivated emotionally,” she says. “In a small business there is usually more work and not enough people, so it’s important to show flexibility of time, schedule and holidays. They are likely to value this more than a salary increase at another less flexible company.”

To succeed you need people with a passion for your business and not just the pay check it gives them. If employees have a clear understanding of the contribution that their work brings to the growth of the business, and how they will benefit from this growth, they will be more motivated, happier and prepared to do whatever it takes to make it a success. “Keeping good staff is all about ensuring a workforce is engaged, content and motivated,” says Fergal Dowling, a partner at Irwin Mitchell solicitors' employment law team. “This is particularly important for businesses that are reliant on a smaller workforce.”

Thomas Giles, an independent HR consultant who advises blue-chip corporations, calls this “sharing the dream”. He advises ensuring that all team members understand what the company is aiming to achieve and what’s in it for them. “Clearly show how they will benefit and share in the company’s success, in terms of career development, new opportunities, security or financial reward,” he says. “By cascading a clear company vision and plan all team members will be able to understand how they can contribute to their organisation and take ownership, which in turn will create greater buy-in.”

Following these steps will ensure that you create a team who share the sense that it’s their business too, and this should be your highest priority. No one puts in more effort or feels more satisfaction at success and a job well done than those who feel they have a stake in the company for which they work.