Key metrics to help measure global business performance

 

 

 

At a time when more small businesses are competing in overseas markets, it’s important to have data that can provide the insights you need to do more business and outperform the competition. That means focussing on certain key metrics. Your business will naturally perform better in different markets, so it’s important to know where and why that is. It’ll help you develop your offerings, positioning and pricing strategy to optimise sales in each marketplace.  

From customer acquisition and retention rates, to lifetime value and ROI, there are key indicators that can help you discover where to direct more of your resources in order to maximise business benefit. If you’ve already cracked the domestic market, then you should have an idea of what to look out for, but be aware that the same rules won’t necessarily apply in foreign markets. Here are a few tips on what to look out for. 

 

 

Guesstimates 

 

Firstly, before setting foot in new global territories, you should already have an idea of what you want to achieve in terms of sales. Start by putting a basic plan together for each market. Your estimates in terms of picking up new business and sales will give you some form of reference point to go on. If you’re performing more poorly than expected, you need to find out why. That means looking at other key indicators. On the other hand, if you’re performing better than expected in certain markets – great! But, still investigate why that is and if you can put those learnings to work in other regional markets.  

 

 

Analyse everything 

 

Every market is unique and different factors can influence how well you do in each marketplace. The challenge is finding out what those differentiating factors are. That’s not easy, so you have to look at every statistic available to you for clues. For example, if your business relies on an app, use this as a point of reference, measuring install and uninstall rates to calculate customer acquisition and retention. After that, you need to consider the context in which installs/uninstalls are happening. For instance, is there a low take up of mobile devices and Smartphones in certain countries? Are certain customers more content to buy online via computer? If so, direct your marketing efforts into that Point-Of-Sale. The learning here is to investigate every angle. 

 

 

Speak to an expert 

 

Of course, one of the best ways to learn about regional differences is to talk to an expert. And there are fewer more qualified than your customers. Ask for feedback as to what you could be doing better, with regards to your product range, as well as how customers prefer to buy. The results could be really enlightening. A regional expert that knows your niche could also offer insights in terms of culture and purchasing drivers that can help you do better in a specific marketplace.  

 

 

Look at what your competitors are doing 

 

Before entering any new market, it’s a good idea to check out the competition. Clearly, they could have a huge impact on your success in that market. Examine what they’re doing well and what’s not working out for them. More importantly, look at how you can benefit from their mistakes. Can you tailor your offering in a way that makes it more attractive to the market? One vitally important benchmark here is pricing. Can you beat them on price, even in the short term, to steal market share and then focus on customer service to hold on to that new business?  

Measuring, interpreting and testing data should be a key part of every business strategy. By setting clear goals for international markets and always going back to them in order to review and fine-tune them, you’ll find that you will do better and grow your overseas business.  

Five effective leadership styles for business leaders

 

 

 

The key to a successful business is a great leader, but there are many different management styles out there and the one you pursue will depend on who you are, company culture and your business model. Here we look at the five main leadership styles in more detail, so you can find the one most appropriate for you and your business.  

 

 

Transformational leadership 

 

This approach is used by leaders who are always looking for ways to help their team grow and develop further, so that workers can consistently learn new skills and make a greater contribution to the business. The goal here is to promote a shared vision, so that everyone is working towards the same objectives. As such, these leaders tend to focus on the bigger picture, rather than the finer details of management. This style of leadership is ideal for people who are empathetic, good listeners and strive for integrity and authenticity. They are good at dealing with conflict and hold people accountable for their actions, including themselves.  

 

 

Democratic leadership 

 

Here, decision-making is based on the views of the team. While it’s the manager’s responsibility to make the final decision, each team member is given a voice and a vote on the final outcome. This can be a very effective leadership style as it gives lower-level employees a say in how projects progress. It can make for a highly motivating and inclusive culture within the business, because everyone has the opportunity to make a difference.  

 

 

Autocratic leadership 

 

This is the opposite of a democratic leadership style and isn’t always effective. In this instance, the leader has all the authority and may not even consult team members before making a decision. As a result, this can lead to poor decision-making, as the manager may not see the full picture from every perspective. However, this approach can be useful if tough decisions have to be made and buy-in from employees is a challenge. That said, for most businesses today, this type of leadership tends to create more issues than it solves and can lead to staff retention challenges. 

 

 

Laissez-faire leadership 

 

As the name suggest, this style denotes a ‘hands-off’ approach to leadership where responsibilities and decision-making is delegated to lower-level managers with minimal interference and supervision. This can be very empowering for team members as it gives them autonomy and the potential to make a real difference to business outcomes. Some employees perform exceptionally well under this style of leadership, especially in start-ups with a loose hierarchical structure, where everyone collaborates to achieve business goals. However, it is important that the leader continually monitors and reviews progress as a result of this leadership style. 

 

 

Transactional leadership 

 

These leaders work from an assumption that rewarding excellent performance and penalising poor performance encourages employees to work to the best of their abilities. This can be effective in certain types of businesses i.e., where workers have targets or performance related benchmarks to meet. 

 

 

Who are you? 

 

Of course, depending on your personality and the type of business you work in, some of these leadership styles can be blended in order to bring the best outcomes for the business. For help in discovering what type of leadership style suits you, there is a management survey tool known as the Leadership Development Profile that relies on a series of 36 open-ended questions that can help you understand leadership styles in more detail and discover which might be best for your organisation. 

Developing a leadership style doesn’t come naturally to everyone, but it’s worth trying and can help you become more self-aware, delivering greater business rewards in the long term.   

Five reasons to take your business global

 

 

 

It’s not until entrepreneurs begin to make the move from selling domestically to selling internationally that they realised what they’ve been missing. Today, new technology means it has never been easier or more cost-effective for a small business to expand into global markets.  

Here are the five main advantages, companies can gain by making the move to expand internationally: 

 

 

Increase your customer base 

 

It might seem obvious but making the move from a domestic market to an international one is a sure-fire way to ensure that your business is exposed to millions of new customers. Hopefully, your product or service will be in demand and provide a much-needed solution in these new territories 

 

 

It’s time to expand 

 

Apart from finding new customers, there’s another very good reason to expand into foreign markets. And that’s if you feel that you’ve already saturated your main market. If you’ve run out of targets in your domestic market, then the natural thing to do is look for new ones in markets overseas. That way, your business – and your profits – can continue to grow 

As an added benefit, expansion into new foreign markets means diversification which can reduce risk, especially if something unexpected happens to business in your domestic market – you’ll still have your overseas business to fall back on. 

 

 

Gain a competitive edge 

 

Most businesses have competitors in the domestic market. If that’s the case for your business, then you could actually do better in overseas markets where there might be less competition. More importantly, move into a foreign market before your rivals do and you’ll secure a foothold, making it much more difficult for them to gain market share further down the road 

What’s more, when you start selling overseas, you may reveal learnings and insights that you can apply in your home market for greater success. Regardless, the increased revenues for operating globally could boost your bottom line to the extent that you’ll be able to afford to invest in marketing and advertising back home – in order to steal further market share from your rivals.  

 

 

Economies of scale 

 

When you make the transition to creating product for one market to many, it won’t be long until you discover that you need a lot more product. This means you can buy in bulk and benefit from economies of scale. As the per unit manufacturing cost falls, profit margins rise. You may even be able to benefit from sourcing cheaper materials and labour in some overseas markets, cutting operational costs further. You can then pass these savings onto the customer to undercut competitors, or create a cash pile for further investment in the business.  

 

 

Seasonal ebb and flow 

 

If your business does better at certain times of year due to seasonal ebb and flow, then you might be able to pick up extra business overseas when business is slow at home. This is worth researching, as you can then divert your marketing budget in order to focus on those regions where it’s possible to gain the most advantage.  

In addition to this, you may discover ways of tailoring your offering in order to create increased demand and new revenue streams in certain overseas territories at different times of the year. 

 

 

Get the tools for success in overseas markets 

 

Of course, to really benefit from doing business globally, you need the capacity to take payments from overseas – and in different currencies. As a global payments provider, KoalaPays allows you to do business in more than 20 currencies at once in countries all over the world. We also have designed our services with business customers in mind, offering the tools you need to expand into overseas markets and full flexibility of your account. If you’d like us to help you succeed with your international expansion, please get in touch with our team today! 

Digital banking vs traditional banks

 

 

 

Digital banking is no longer a novelty as more and more customers discover the advantages of doing all their banking online. And both personal and business customers are seeing the benefits. Due to the technology evolving quickly, new features and services are being added all the time, enhancing what we can do with digital banking.  

Traditional banks are seeing that digital banks are a real threat and are responding by trying to offer similar online services. However, for the most part, these are based on an archaic banking model and simply can’t compete in terms of pricing, functionality or added value features. 

 

 

24/7 banking has arrived 

 

At a time when just about everyone has access to the Internet, even on the move, banking online is easier than ever. Now, you can access your account anytime, making money management effortless, which is especially handy if you’re running a business.  

The new breed of fintech companies have made it easier to connect and manage your financial life on more platforms, such as mobile devices and tailor-made apps, so you can connect with customers round the clock. These days, online banking isn’t simply about checking your balance and paying bills – you can do a whole lot more, such as receiving payments from customers.  And because of Open Banking, you can do it all in conjunction with your old traditional bank account. 

 

 

More convenient 

 

When was the last time you took a cheque from a customerProbably not too recently. Because more people are making payments online, there is less need to go to a physical bank to lodge cheques or cash.  

Even ATM usage is falling as contactless payments are being completed more than ever before. The Covid crisis has added to this as fewer people want to handle money due to the risk of infection. This is set to continue when the pandemic has passed.  

Best of all, many new online banking platforms interface seamlessly with other software packages, such as those that handle accounting, taxation and payroll. 

 

 

More choice 

 

Fintech companies, such as KoalaPays, provide customers with more choice than ever before. For example, we offer unique services targeting specific needs of our business customers, and adding more value than a generic traditional bank ever could.  

Our easy-to-use platform allows clients to hold and convert over 20 major currencies, which makes cross-border payments quick and secure. Furthermore, having a fully digital account, makes managing your cashflow and identifying how you can improve your revenue streams easier than ever. 

 

 

Fewer fees 

 

With no costs for maintaining physical branches, online banks are very cost-efficient, especially as many transactions carried out online don’t require third parties, as it is the case with traditional banks. Automation of many banking processes also means fewer staff are needed. All this adds up to considerable cost savings over the traditional banking model – savings that can be passed onto customers meaning fees are exceptionally low and, in some cases, only charged for premium services. 

 

 

Faster and more efficient 

 

Everything is faster and more efficient online and this applies equally when it comes to banking. Since a lot of processes are automated and stored in the Cloud, paper errors are significantly reduced. Even customer support is better. You can get answers to most of your questions by email, through an app or by using a chatbot. 

The traditional banking model has become outdated. Fintech companies have made digital banking faster, more convenient, cheaper and more useful for customers. New functionality makes it easier for clients and businesses to manage their finances in ways that were impossible before and provide new types of innovative services that meet the unique needs of their customers. 

Four fundamentals when conducting a financial analysis of your business

 

 

 

Financial analysis is crucial when it comes to evaluating where your business currently stands and seeing how you can improve your future performance. Your ultimate goal is to use financial analysis to run the business more efficiently, and consequently, more profitably. 

While a professional financial analyst can do a lot for your business, hiring one can be an expensive undertaking. Fortunately, you can apply the same principles for even the smallest business. Here is what to look at… 

 

 

Revenues 

 

Obviously, the money you have coming in is what makes the biggest impact on how sustainable or successful your business is. By looking at the various ways money comes into the business and where it comes from, you should be able to reveal insights that can help you divert more of your resources to the most successful channels of revenue. 

An analysis of revenue might also disclose risks to the business. For example, if you discover that a lot of revenue is coming from a single customer, then it might be time to start looking for new business in case that customer stops buying from you. This may also be an opportunity to look at your offerings and the strategies used by the business to differentiate products, in terms of uniqueness, profit margin, cost control and marketing. 

 

 

Profitability 

 

Profits are essential to any business. If you don’t consistently make a profit, you won’t stay in business. It’s that simple. Your income must cover your expenses. Anything left over is profit. If you’re just breaking even, or worse, then you might have to review your pricing strategy. Regardless, it’s a good idea to channel some profit into a fund for unexpected emergencies or purchases for the business, so this needs to be factored into your pricing model.  

It’s worth pointing out here, that operating expenses do not include taxes. It’s a good idea to set up a separate account in which to channel your tax liabilities for each month, so you know exactly what’s left over for reinvesting into the business. KoalaPays can help with this by providing ‘spaces’ or separate accounts for segmenting taxes and other expenses.  

 

 

Operational efficiency 

 

One of the key drivers for profitability is operational efficiency. The more efficient your company is in terms of productivity, costs and business processes, then the more profit you’ll have left over after operational expenses. 

Two important figures to look at here are accounts receivable turnover and inventory turnover. If your account receivable turnover is low, then it might be time to look at how you can improve your credit control procedures in order to get money flowing into the business more quickly. Likewise, a fast turnover of inventory means that you’re selling well and you aren’t creating more product than you can sellGetting the right balance here is important as storing product that isn’t moving is an expense in itself 

 

 

Financial statements 

 

The tools to getting the insights you need are your financial statements. These should tell you a lot about how your business is doing. Key figures to examine include asset management and liquidity, profitability, debt, risk and market valuation. Look for trends that stand out, such as fluctuations from previous figures – relative to industry averages or other general economic factors.  

Make sure you critically examine how you arrive at all of these figures. It’s here where accounting irregularities can come to light.  

When this has been completed, you should have everything you need to make forecasts for future financial statements. At this stage, you should also be able to put a valuation on the business, which could be useful, if, for instance, you want to borrow for the business 

More importantly, however, you’ll know whether business performance is improving, or worsening. If it is the latter, you’ll have the insights you need to create an action plan to resolve those issues. 

Protect your business from Covid-19 scams

 

 

 

 

With more people working remotely due to the Covid-19 pandemic, more business transactions are also being carried out online. Unfortunately, many of these transactions are being conducted from homes instead of offices. With fewer security measures in place, this has meant more businesses and employees are falling foul of fraudsters.  

Already, there have been hundreds of reports from businesses related to an upsurge in attempted fraud and the appearance of new scams relating to Covid-19. Businesses are losing millions due to cybercrime and other types of fraud during the pandemic. Here’s what to look out for and what steps you can take to protect your business. 

 

 

Where is your Coronavirus advice coming from? 

 

Phishing is on the increase as scammers send out mass emails claiming to be from government or medical organisations. While these emails claim to be offering advice and information on coronavirus, they are usually an attempt to obtain personal data and information.  

Typically, this is done through a request to click on a link, download an attachment or confirm login details for online servicesTheses attachments and downloads can install keyloggers or ransomware on computers allowing cybercriminals to access data and take control of your PC. 

The solution is never to respond to emails requesting personal data. Legitimate agencies won’t request such information by email. Look out for typos and grammatical errors that are also tell-tale signs that these emails are not genuine. 

 

 

Secure your communications 

 

Working from home, most employees don’t have the same security infrastructure in place as found in office networks. In addition, many cybercriminals are looking to exploit vulnerabilities in commonly used business video-conferencing applications. Zoom and Microsoft have reported that users are being messaged and asked to download malicious files through their video apps. 

To reduce the chance of being hacked, it’s important that home workers are provided with training to configure security settings on communication apps correctly, along with suitable firewall and malware software to keep cybercriminals at bay 

 

 

Invoicing scams 

 

Invoicing scams were commonplace before Covid-19, but police and fraud agencies are now warning that there has been an increasing number of cases of invoice redirection coming to light during the pandemic. This is when a business receives a fake email claiming to be from an existing supplier, notifying a change of bank details in the hope that the company will send future payments to a bank account of the scammer’s choosing. 

Again, preventing invoice redirection scams is all about staff training and putting effective protocols in place. Employees must be instructed to double-check any change in bank details over the phone before making a payment. Never reply to a suspicious email and do not click on any links. A good payment solutions provider, such as KoalaPays, will have other security mechanisms in place to prevent this type of fraud occurring.  

 

 

Fake suppliers and counterfeit goods 

 

Covid-19 has meant a huge upsurge in demand for PPE and disinfectant/cleaning products. Here, the scammers set up fake websites, sometimes imitating the sites of genuine sellers, advertising products for sale, take payments, but never deliver the goods. Alternatively, they buy in cheap, defective and counterfeit goods and sell them to customers at inflated prices.  

Firms looking for these products should research suppliers thoroughly and only deal with reputable businesses that have good customer relationships already. New companies should be fully vetted before any purchases are made.  

Another way that businesses can protect themselves against all types of fraud is to partner with a payment solutions provider that makes security a priority. KoalaPays’ platform is fully PCI-compliant and we use the latest fraud prevention technology to do everything we can to protect our clients from scammers.  

Eight Don’ts when it comes to being a successful entrepreneur

 

 

 

It isn’t easy becoming a successful entrepreneur. 60% of new businesses fail in the first three years. To have any chance of establishing your business and becoming profitable, there are more than a few mistakes you really must avoid. Here are just eight… 

 

 

Don’t expect to be an overnight success 

 

Every venture, no matter how much you’ve planned, or how much confidence you have in your business model, comes with risks – especially when you’re just starting up. Don’t expect things to go smoothly or to make a profit straightaway. Expect problems and setbacksBeing successful is a long term game. That means commitmenta lot of hard work, patience and, above all, perseverance 

 

 

Don’t forget to make a business plan 

 

Start without a business plan and you’re planning to fail. Even if it’s just a single page, map out what you expect your start-up and operating costs to be, who your customers are, how you will sell to them and how much you expect to turnover monthly and annually. This will give you some idea of whether or not your business is going to be a viable concernContinually revisit your plan to review and refine, add new goals to work towards for the short, medium and long term. 

 

 

Don’t forget your tax obligations 

 

Make sure you follow the rules when it comes to registering your company and paying tax. If at all possible, get an accountant to help you with this and ensure you know exactly what your obligations are. It’s wise to put away enough cash in a tax account each month, so when the time comes to complete your tax return, the funds are in place. KoalaPays can help with separate ‘spaces’ to designate funds so you can manage your finances and your taxes better.  

 

 

Don’t forget contracts 

 

When you’re just starting out, you’ll do just about anything to get a new client on board – to the\ point where it can be tempting not to use a contract. This can be a big mistake for a new venture with limited resources. No matter how good your relationship with a business partner, when things go wrong, if you don’t have a contract, the outcome can be disastrous for your business.  

 

 

Don’t waste money 

 

When you’re starting out, being cost-efficient is critical. So when it comes to partnering with service providers, make sure you get value for money. Do your research and find the suppliers, partners and technology that are most compatible with your business model. For instance, at KoalaPays, we’ve designed our services around businesses just like yours with a range of features that can make it easier for you to do business in more places across the world.  

 

 

Don’t overpromise or under-deliver 

 

If you tell a customer or business partner that you can deliver more than you actually can, you could lose business. Be conservative in your estimates, that way you can always over-deliver and really impress your customers. 

 

 

Don’t be unprofessional

 

Following on from that, be professional in all your dealings with customers, suppliers and other business partners. Professionalism is what makes others take your business seriously. Respect your employees and others you work with, as well as customers. Always be courteous and polite. If you’re lax in any respect of professionalism, the result can seriously cripple your reputation. In the business community, word can spread quickly – anything that’s bad for your reputation is bad for business.  

 

 

Don’t rush when it comes to hiring 

 

The people that work for you are the lifeblood of your business, so it’s important to get recruitment right – even if you need new staff desperately. Invest in advertising and screening candidates. If necessary, outsource. Remember, you’re not only looking for someone who can do the job, but someone who is a good fit for company culture and can even bring more value to the business in other areas.  

Five things businesses can expect in 2021

 

 

 

Given everything that’s happened in 2020, it’s anyone’s guess what’s coming down the line in 2021. But there are five main issues we know, that are almost certain to impact businesses across Europe next year.  

 

 

Brexit 

 

While, right now, the headlines are all about Covid-19, before the global pandemic hit, it was all Brexit. And that hasn’t gone away. On January 31st, the UK is set to leave the EU and, as yet, there is still no deal. Anything could happen between now and then, but whether it’s a no-deal or the parties come to some arrangement, there are sure to be serious ramifications for businesses both in the UK and the rest of Europe. Keep abreast of developments and begin putting contingencies in place on what you can plan for. 

 

 

Taxes 

 

As a result of Brexit – the UK leaving EU, means that the EU will lose a major contributor. The remaining 27 states will have to increase how much they pay into the central pot in order to balance the books – which means governments will have to find extra cash somewhere. Making up this shortfall could mean extra taxes on businesses. Again, we still don’t know all of the details and will have to wait and see how the EC reacts, particularly with the ramifications of the current pandemic. 

 

 

Covid-19 

 

As the second wave of Covid-19 is here, once again businesses are being locked down all over Europe. Without a doubt, there will be casualties as many go to the wall, despite governments bail out schemes to keep companies operating and employees paid.  

However, when the Covid-19 crisis finally ends, there’ll be a price to pay in terms of the debt left in its wake, along with a high probability of recession. Many businesses will be looking for handouts and funding to get back up-and-running. But, an even worse scenario could await in the early months of next year in the form of a third wave of the disease. 

 

 

Work from home is here to stay 

 

Coronavirus lockdowns saw more companies than ever implement WFH (Work From Home) policies. It’s thought that close to a third of all European worker have now worked from home at some stage during the pandemic and this is set to continue into next year.  

Many of these businesses wouldn’t have considered adopting these policies before the pandemic hitHowever, more significantly, many of these companies are seeing business benefits as a result of WFH and other flexible working policies. WFH will become the norm at many companies once the pandemic has ended.  

And, as we see those laid off during the pandemic re-entering the workforce during 2021, it will be companies that have embraced flexible working practices that will be able to cherry-pick the best of the talent out there.  

 

 

Payment technologies will do even more 

 

Voice technologies such as Alexa and Siri are changing the way consumers interact with technology and with businesses. Along with technologies such as AI (Artificial Intelligence), data analytics, Cloud computing and the Internet of Things, the way we purchase and pay for things is evolving fast.  

To benefit, businesses must make sure they are using the latest technology and partnering with payment solutions providers that will be able to connect them to more customers in new ways. At KoalaPays, we will always push the boundaries of what can be achieved with our payment solutions, offering more value and functionality to businesses that partner with us, as well as helping you to offer more to your own customers too. Get in touch with our team if you’d like to find out more.  

What is KYC and why do we need it?

 

 

 

KYC or the Know Your Customer protocol is a legal requirement created for AML (Anti-Money Laundering) purposes. The legislation refers to the process of verifying the identity of customers, either before or when they begin to do business with you. For organisations working within financial services, such as banks and fintech companies, it’s particularly important when it comes to identifying and monitoring customer risk and fraudulent behaviour.  

 

 

KYC protects everyone 

 

In Europe, the fourth anti-money laundering directive (AMLD4) came into effect in June 2017 with a set of rules designed to protect financial entities from being exposed to money laundering. An enhanced version of this (AMLD5) came into effect in January of 2020improving transparency and co-operation between state authorities. 

Clearly, the regulations associated with KYC are becoming increasingly stringent, especially for financial services providers. Companies, including KoalaPays, must demonstrate ‘reasonable due diligence’ when establishing relationships with customers. As such, KYC allows companies to protect their businesses, as well as others who could be impacted by the effects of financial crime.  

KYC involves collecting information and data such as names, social security numbers, birthdays and addresses, ideally using electronic identity verification. Once the information has been collated, the data can then be compared with lists of known and potential financial criminals and those suspected of money laundering, bribery or corruption. 

 

 

Help with assessing risk 

 

By doing so, banks can assess if and how much risk a customer poses, reviewing their account for activity that might be suspicious. Financial institutions and policing organisations are then able to compare client profiles in an effort to see if the same person is operating under different identities. 

In terms of fintech companies, such as KoalaPays, KYC compliance has a significant impact on how customers open accounts and perform transactions on different types of devices. Obviously, we want customers to benefit from our services, but we also want to do our bit for fighting fraud and financial crime. By complying with KYC regulations, we can do this while mitigating risk for our own business. 

Fortunately, the state-of-the-art security solutions used by fintech companies, gives our customers peace of mind when it comes to partnering with us and using our services. It also gives us the confidence of knowing that we are fully compliant with KYC protocols. Our platform is fully PCI compliant with the latest fraud protection technology to ensure all your transactions are safe and secure.  

If you’d like to find out more about how we keep you safe, don’t hesitate to get in touch here. 

Five employee retention strategies for your business

 

 

 

If you have good staff, you’ll want to keep them, which is why it’s important to have a strong employee retention policy in place. After all, hiring new recruits can be costly and time-consuming, especially if you’re a small business.  

The key to keeping your best employees from going to the competition is understanding why they want to leave. 

 

 

Pay attention to pay 

 

Strangely enough, money, or a lack of it, isn’t always the main motivation for someone leaving one firm to work at another, but if you’re not paying market rates, it can be an influencing factor 

If you don’t want a rival company to poach your best workers, then it’s important to make sure you’re paying them what they’re really worth. Reward high performers with bonuses and other incentives. This has the added bonus of creating friendly competition among workers and boosting productivity. 

Be transparent when it comes to pay increases. If you tell a new recruit that there’s a pay review after six months, then make sure that there is one. There’s no easier way to frustrate workers than avoiding discussions about proposed salary increases.  

Make sure that employees doing similar work are on the same wage. Company morale can take a big hit from rumours that someone is getting paid less than someone else in the same job.  

 

 

Perks of the job 

 

When looking for a new job, added benefits can make all the difference to a great candidate who is in demand. Everyone has different needs, such as stock options, a gym membership, family health insurance, or paying for educational/upskilling opportunities. If you can be flexible when it comes to the perks of the job, then you’re much more likely to keep people at the firm for longer. One way of doing this fairly, is to offer a variety of benefit options in a package that employees can tailor to meet their own needs and circumstances.  

 

 

Appreciate and recognise the talent you have  

 

Workers like to be recognised for what they do. Even a simple ‘thank you’ can go a long way when it comes to making employees feel appreciated. Better still, when praising a worker for doing a good job, ask for ideas and input on how to improve things at the firm. This is a great way to engage workers and keep them enthusiastic about their role in the success of the business.  

Try to promote from within the company whenever possible. If someone consistently does a good job, make sure they know that their prospects for career progression at the firm are good. Recruiting externally for the role above them, when they feel they’re more than capable, can be a real demotivator. Wherever possible, let workers progress through the ranks and recruit for the vacancy created by that promotion.  

 

 

Be flexible 

 

If your workers are prepared to go the extra mile for you, you should be prepared to do the same for them. Your employees have lives outside work with all the same issues and problems as you, so if they need some time off for an emergency, try to be flexible. Any work-life policies, such as flexible working, will go a long way to making sure employees feel appreciated and valued. These policies will help further when it comes to recruiting new talent. 

 

 

Hire the right person for the job and the company 

 

One sure-fire way of getting people to stay with you longer is to hire the right person for the job at the outset. Hire someone who is wrong for your business, and they’re going to quit sooner or later.  

This means making sure your recruitment processes are effective throughout, from creating a clear and detailed job description to ensuring new hires get all the help they need with onboarding. Be clear on company culture and expectations throughout and get professional recruitment help, if at all possible.  

This applies equally to managers. A bad manager can play havoc with your retention strategy. Hire leaders, not bosses. Ensure your managers buy into company culture and are trained to deal with conflict management.  

If you invest in your people and your retention strategy, you’ll see the rewards in the talent you hire through greater productivity and performance. 

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