Even when cashflow is tight, it’s important to retain your staff.
It’s tough out there right now: the cost of living crisis is having an enormous impact at all levels. Rents are rising and supplies are ever more expensive – throughout the UK, businesses are looking at ways they can save money.
But while you’re searching for economies, try not to take your eye off future plans: for an organisation to grow successfully, it must formulate its next steps. Talent is vital for long-term growth and if you already employ staff with ability, vision and potential, it’s in your interests to retain them.
Why is it a good idea to retain your staff?
Well, perhaps most importantly, your staff generate business, keeping the company moving forward. Good staff aren’t just an asset in terms of how they benefit the organisation – you probably invested a great deal of time and money in training. You don’t want to lose that! Don’t forget that recruitment takes a lot of time and money, too.
If you reach the point where you’re considering making redundancies, remember that this also costs money – is there another way to make savings? Plus, if you don’t manage the redundancy process properly, you could run the risk of litigation.
How to retain them when cashflow is tight
By now, you may be thinking “but something’s got to give”. There are practical things you can do right now to retain your valuable workforce. First, talk to your accountant. Together, prepare a detailed cashflow. Run scenarios to understand where you might be able to make other savings. For example, would home-working save money on premises costs and utility bills?
Next, talk to the staff. Be honest – your team will appreciate it. Involve them in your survival strategy. They can often come up with great ideas, whether they’re about helping to reduce costs or ways of generating more business. You might consider offering reduced hours or holiday buyback (where an employee buys extra holiday days, reducing their salary by the number of days they have purchased). This will not only reduce the wage bill but will retain the talent… some employees might even view it as a benefit.
You might also be eligible for grants and funding. Your local growth hub is a brilliant starting point for finding out what’s available – click here to find yours.
Even though things are pretty bleak right now, retaining staff will help to see you through to when times are better. We can help too – give us a call on 01449 708999 or send us an email.