View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. Uncategorized
February 1, 2010updated 12 Apr 2017 4:27pm

How to retain staff

The risk of losing staff is growing as the job market begins to recover from the recession Ludwig Fischer, a former HR director at Hewlett Packard Financial Services, discusses how to make the good ones stay. By now, every asset finance organization should know how it intends to look post-recession, and human resources are an important part of that picture.

By Ludwig Fischer

The risk of losing staff is growing as the job market begins to recover from the recession. Ludwig Fischer, a former HR director at Hewlett Packard Financial Services, discusses how to make the good ones stay.

 

By now, every asset finance organization should know how it intends to look post-recession, and human resources are an important part of that picture.

Last year, for many, was an opportunity to fundamentally revamp procedures and priorities, with several questions coming up time and time again:

• Which customer relationships do we want to keep?

• Which assets do we want to finance?

• Do we pull out of certain markets and/or assets categories?

• How do we deal with risks and how can we mitigate them?

• How can we better control our assets and proactively manage our asset base?

Knowing assets well, speaking the language of asset-specific industries, and understanding the depreciation of financed assets were crucial to sustaining margins in 2009. However, one of the most precious asset types is one that does not even show on the books, and one that is getting too little attention – employees.

Competent, motivated and engaged staff are a significant differentiator between companies at present, and will become even more so as pricing becomes more competitive. As well as enthusiasm and willingness to go the extra mile, it is crucial for employees to adapt quickly to change – especially as recovery begins.

Excellent people management is a necessity in good times and in bad, and has everything to do with communication.

The increasingly global environment requires decentralised organisations, and the more that companies are managing remotely, the more important it is for them to manage by objectives rather than directives.

In such a situation, lasting success can only be achieved with motivated employees that are working in an environment of trust and in a creative atmosphere.

For smaller businesses, proximity between management and employees is a key success factor. Trust, and the strong belief that staff want to do a good job, creates an encouraging environment and leads to everyone in the organisation maximizing their efforts.

Customer satisfaction is a key requirement for sustainable success in all service-related industries – and this industry is no exception. Asset finance business is a people’s business, especially now that credit is less available and therefore sheer price-cutting is no longer a differentiator.

In addition, the asset finance industry is a small world – customers and employees keep records of historic developments and strategic decisions, and have long memories.

Large enterprises in this industry need to make sure they keep the most capable people available for each assignment within their organisation – presumably an easy task at a time of crisis, with so few job alternatives available for people.

But in the long run, retention will become an issue again. The current labour market has low fluctuation rates, and attrition will definitely go up when the economy turns around and opportunities arise.

Excellent people will be hunted first and will be the first ones to leave if they have not been treated appropriately during bad times. The asset finance industry, as part of the financial services industry at large, has a credibility issue and is lacking social acceptance currently. Being recognized as a people-centric organisation can do a lot to improve a financial services company’s image in the public eye, thus helping to overcome the industry’s depleted reputation.

As such, management’s role is to ensure that their people feel a real sense of accomplishment in their work, understanding that each person and every job in the organisation is important.

Five tips for staff retention

1. Communication is key – talk to your people regularly, even more than in good times.

2. Don’t hide bad news – it’s better to get it directly from the boss, rather than through the grapevine.

3. Listen to your people – quite often they have better ideas for overcoming problems.

4. Personal integrity – you as a manager are a role model, and need to lead by example.

5. Act decisively and shape your company’s future – demonstrate trust, and involve your people

The author is a partner at Invigors

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Thursday. The leasing industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Leasing Life