Many a times there has been a disconnect between the people who are employed and those that employ. Many employers wrongly perceive that once someone is luck y enough to work for them , get paid regularly and have some minimal level of job security then that is good enough. Most of them believe that the above “embellishments” are sufficient to keep them glued onto their desks for all eternity. They turn out to be terrible abodements to their recipients.
Modern management however entails that in order to have a reasonable level of labour turnover, certain other factors should be considered. Employment usually encompasses two major factors: the growth of the company and the growth of individuals. Invariably, employees always look out for signs (visible or not) that the company is actually moving from one level to another, over time. This is so whether they are privy to strategic management plans or not. The signs that show that a company is growing include hiring 1st class managers in finance, sales, IT, etc. This will usually lead subordinate transfer of skills to the whole team and reap rewards for the company. Further, relevant additions to the capital base of a company will also tend to keep employee mistrusts at bay. If it is an IT firm e.g, investments in new soft and hardware will go a long way in alleying fears.
Many American and European firms believe in this to the extent that they offer stock options to many of their staff. This is intended to give morale to the employees as well as make them part of the company.
In my experience of more than 12 years as a finance manager and outsourcer , l have come across many companies whose short and long term plans for their staff are virtually nonexistent. Many of the Directors, in addition to taking part in day-to-day operations of the company, are also actively involved in the recruitment processes. Many of them make hire & fire decisions based on the mundane.
A parting shot: if you are a manager of an SME you are probably better off planning for your company’s growth other than pursue individuals gratification. This will in turn keep your staff and remove all the problems associated with high labour turnover.