Pharos Legal in profile

Pharos Legal: 10 tips for recruiting, retaining and motivating the best employees

Recruitment tends to be at the top of the list of employer concerns; most employers agree that good staff are hard to find and costly to replace. Losing a good member of staff can be disruptive to your business – it can unsettle a previously stable, happy and high-performing team as well as be a drain on time and money as you conduct a robust recruitment process, carry out checks on references and right to work, pay recruitment fees and train up the successful applicant.

How, then, can you help your business’ bottom line and try to avoid losing good people?

1. Ensure that their efforts are recognised – even if you’re not into “employee of the week” arrangements, recognition is important. A timely and warm word of thanks and appreciation can work wonders.

2. Bench-mark your reward package – is it reasonably competitive? Are you, for example, offering childcare vouchers and other low cost and tax efficient incentives?

3. Monitor workplace satisfaction. This needn’t be with a formal survey – but it’s good to know what people like (and dislike) about working for you. You need to be prepared to act on the feedback you receive though!

4. Ensure staff are managed fairly and consistently. One common complaint is that employers are too slow to pick up on “shirkers”. Another is that performance-management is haphazard or (a cardinal sin) left to the annual appraisal.

5. Consider opening up share ownership to the people you consider to be the future of your business. This can engender a real sense of loyalty, accountability and participation – and can be achieved in a way that doesn’t diminish your shareholder return or affect your ability to make strategic decisions about the future of the business.

6. Communicate regularly. Human nature being what it is, people like to feel included. Whether the news is good or bad, keep your staff informed.

7. Treat people reasonably. For example, avoid having petty rules and regulations that serve no real purpose. Reasonableness is a nebulous concept but it underpins an employer’s legal duties to its staff.

8. Offer training and development opportunities (whilst putting in place, in advance, a training costs agreement so your business actually gets to benefit from its investment and the employee has to repay the costs (or a proportion) if they leave within a certain timeframe).

9. Encourage a collegiate atmosphere and teamwork. Be slow to blame and quick to praise and encourage your staff to do likewise.

10. Have a laugh. Life’s too short to be miserable at work.

Natalie Saunders, managing director at niche law firm Pharos Legal, said: “Some employers take the view that staff should be grateful to have a job, given the current economic environment. That might be true, but as and when the economy does start to improve, staff who have felt unappreciated and undervalued will undoubtedly look to move on. Putting measures in place now might help reduce your exposure to a disruptive and costly staff exodus. This isn’t about being ‘touchy-feely’ or altruistic – it’s about protecting your business and its profitability.”

Pharos Legal is a Leeds-based law firm that represents the interests of clients across the country and in a wide range of sectors – from retail and manufacturing to care homes and independent schools. It provides commercially-focussed HR, employment and business law advice. Client feedback has resulted in the practice achieving strong rankings in the two main legal directories, the Legal 500 and Chambers & Partners. As well as advising on the full spectrum of UK employment and corporate/commercial law issues, the team provides strategic direction to businesses seeking to drive success by maximising employee performance.