Many people confuse the perks and features that aid in retention with those that are effective for recruitment. While both recruitment and retention are crucial, it's essential to distinguish between them. Investing in recruitment is futile if you have retention issues, but knowing the subtle differences can help you manage both effectively.
Here are some examples to illustrate the distinctions:
Pay
Base Pay/Salary
This is a critical factor for both recruitment and retention. People typically switch jobs for a higher salary, making competitive base pay essential for attracting new talent. At the same time, offering a higher salary than your competitors helps retain your current employees, reducing the risk of them leaving.
Performance/Year-End Bonuses
These bonuses are primarily a retention tool. While they can be mentioned during recruitment, candidates often view them with skepticism and are unlikely to switch jobs for potential bonuses. However, once employees are accustomed to these bonuses, they become a significant retention factor. For example, employees might be hesitant to leave if a bonus is just a few months away, and receiving the bonus can reaffirm their decision to stay.
Pre-Hire Bonuses
These bonuses, such as signing bonuses or relocation assistance, are clear recruitment incentives. They can also aid retention if they are tied to a commitment period, encouraging new hires to stay longer to receive the full benefit.
Benefits Package
This is more relevant to retention. Candidates usually want to know that a benefits package exists, but they rarely scrutinize the details before being hired. Once employed, a comprehensive benefits package can keep them satisfied and less likely to look elsewhere. Conversely, inadequate coverage can be a significant reason for employees to start seeking new opportunities.
Great Company Culture
Terms like "great company culture" have little impact on recruitment since no company advertises a poor culture. However, a genuinely positive work environment is crucial for retention. Employees are less likely to leave a place where they feel comfortable and valued.
Online Reviews
Online reviews significantly influence recruitment. Encouraging current employees to share positive experiences can attract new candidates by showcasing your company as a great place to work.
Hours/Shifts
Work hours and shifts are important for recruitment as candidates need to see how the job fits into their lives. For retention, however, employees usually adapt to their schedules and no longer consider this a significant factor.
Working Conditions
Working conditions affect both recruitment and retention if managed correctly. For retention, a well-equipped and safe workplace is vital as no one wants to stay in subpar conditions. For recruitment, showcasing your clean, modern, and safe facilities during the hiring process can attract candidates.
By understanding and leveraging these differences, companies can create more effective strategies for both recruiting new talent and retaining their valuable employees.
If you have your retention sorted out and you need to add to your already awesome team, we can help! Book a meeting or a call below and we will have a no-obligation conversation and develop a tailored recruitment strategy to give you the best chance of hiring Rockstars.
