Struggling with retention? Consider the ‘emotional salary’

Retaining staff is a crucial and often tricky consideration for businesses. Keeping skilled workers in the door is important, and by considering the impact of an “emotional salary”, this process can be made easier.

But what is an emotional salary? According to Stephen Duncan, head of people at The Access Group, it relates to the areas of business that keep employees happy.

“The emotional salary can be viewed as non-monetary aspects of an employees’ remuneration package that makes them feel more engaged, valued and able to see the difference they are making in their role. Perhaps most importantly is it’s a way of boosting the connection an employee feels towards the organisation they are working for,” Duncan said.

“There’s been a tangible flip in the workplace narrative, shifting towards ‘why is this employee attracted to the company?’ as opposed to ‘Why is the company attracted to the employee?’ Those hiring need to give employees confidence that they are being set up for success, and these offerings within an emotional salary are distinct ways to do this and is how it should’ve always been.”

With the current state of the talent market making recruitment extremely competitive, retention strategies like emotional salary can assist in keeping skilled workers happy and engaged.

Duncan commented: “There are high expectations of someone going into a role today surrounding a company’s digital capabilities, flexibility, communication and modern processes. These are all things being sought after as they maximise the time of the employee spent within an organisation, as well as efficiently growing their skill set.”

“The companies that incorporate an honest emotional salary into their offerings are at a tangible competitive advantage. So much so that if you do not lead with these things, employees begin to question whether they are in the position they truly want to be in.”

“With a peak in employee turnover, it’s things like this that can make the difference – they may seem like small things for an organisation, but they can go a long way with an individual. It’s not only about making money anymore; it’s about self-worth, broad contributions, flexibility and a real relationship with the job,” he explained.

Further to emotional salary, employers should glance over retention techniques and craft effective policies to help mitigate turnover troubles. According to Duncan, there are a variety of considerations to make.

“Training is so important. Growth paths, clarity on goals, recognition, rewards and options for flexibility – ping pong tables and free lunches just aren’t going to cut it anymore. Employees now want to feel connected to the organisation where they understand their place and the value they bring, something a lot of companies are still struggling to provide and incorporate into their business,” Duncan said.

He concluded: “Purpose is also providing a bigger driver than ever before, an area that’s really under-discussed in the staff turnover discussion. The younger generation is far more conscious in areas such as ESG initiatives, truly desiring a company to clarify an honest resolve to not only the wellbeing of their employees but a broader difference to the community they operate within.”

To read more, visit The Access Group.