Retention or Tenure?

Many businesses are placing a greater emphasis on employee retention by implementing various engaging activities and strategies. However, it's important to ensure that these retention efforts don't push an agenda - focusing on what the business wants and ignoring what the employee needs.

The reality is that people move. Some businesses, particularly those with fewer resources and scale, may be limited in fulfilling every employee's professional goal. Larger operations are more likely to have more resources to offer extensive development paths or broader benefits. A key advantage for smaller businesses is being more personalised in their approach, allowing them to connect with an employee on a more personal level - and more regularly.

Why shift to focusing on Tenure?

Concentrating on employee tenure can foster an open and practical environment, with a view to value the time employees invest in the business. The shift to a tenure perspective is about focusing on the individual. A tenure perspective effectively emphasises realistic timelines and the importance of planning transitions to reduce knowledge loss and minimise service disruptions.

So, what does focusing on tenure look like?

A tenure focus needs to be practical and simple to implement. Below are some ideas for businesses in the insurance industry that are likely to maximise an employee’s tenure and go beyond a salary.

Empower Employees with Initiative Programmes

One way to encourage employees to improve their tenure is to give them a sense of ownership over their work. Initiative and Empowerment Programmes allow employees to lead projects, make decisions, and feel like they’re essential to the company’s success – giving them exposure and experience in a safe and supportive environment.

What This Can Look Like: Allow employees to lead small projects, like improving client service processes or optimising claims systems. Giving them the autonomy and resources to manage these projects builds their confidence and makes them more invested in the company’s success. Importantly – link it to growth of the business.

Why It Works: Employees who feel empowered and valued are likelier to stay engaged. They also see the company as a place to learn more and make a real impact, motivating them to wait longer to see their efforts pay off.

It's important that retention efforts don't push an agenda, focusing on what the business wants and ignoring what the employee needs.

Support Transitions with Structured Knowledge Transfer

It’s important to acknowledge that most employees will move on at some point. By planning for these transitions, businesses can reduce the impact of departures. This isn’t about stopping people from leaving; it’s about managing it to benefit everyone.

Mentorship Programmes: Pair experienced employees with newer ones to gradually share skills and knowledge. Do this from the start – and regularly. This way, when senior staff leave or get promoted, their mentees are already prepared to step up.

Simple Documentation Systems: Set up an easy way for employees to document their work processes, client details, and ongoing projects. This will allow others to pick up where they left off, minimising disruptions and ensuring that valuable information isn’t lost. Better still, encourage and reward information sharing regularly on activities and with clients. Celebrate successes and opportunities to improve.

Embrace Flexibility in Work Arrangements

Flexibility is a huge draw for employees today, especially those who balance work with personal responsibilities. Offering flexible work options doesn’t have to be costly, and it can significantly impact how long employees choose to stay.

Remote Work and Hybrid Models: If possible, allow employees to work remotely or offer flexible hours that fit their lifestyles. This shows that the company values work-life balance, which is a major factor in encouraging employees to stay longer.

Customisable Benefits: Offer flexible benefits that employees can tailor to their needs, such as travel allowances for regional employees. This personalisation makes employees feel valued, contributing to longer tenures. While recognising activity is valuable, the true measure of growth lies in the tangible returns it generates, benefiting both the employee and the business.

Personalised Development Paths

Businesses might not have the resources for large-scale training programmes, but they can still offer growth opportunities through personalised, practical approaches. It’s all about aligning the company’s needs with the employees’ career goals.

On-the-Job Learning and Role Rotation: Allow employees to rotate through different roles within the company, such as moving from policy administration to client services or underwriting. This helps them build a broad skill set and see a clear path for career growth.

Skill-Sharing Workshops: Organise informal sessions where employees share their expertise with others. These workshops don’t require big budgets and can be part of regular team meetings, allowing employees to learn new skills in a low-pressure setting – especially in areas where their interests lie.

While recognising activity is valuable, the true measure of growth lies in the tangible returns it generates, benefiting both the employee and the business.

Plan for and Celebrate Employee Transitions

Instead of seeing an employee's departure as a setback, businesses should view it as a natural and positive opportunity that can benefit both the company and the individual. When handled correctly, a departure can be a chance to use what the organisation has learned from that employee to grow and further improve the business.

Make Departures a Positive Experience: When someone leaves—whether for a promotion within the company or a new job elsewhere—celebrate their contributions and show support for their next step. This keeps the transition smooth and demonstrates to the rest of the team that growth is valued, even when it means moving on. It also gives the company a chance to reflect on what worked well and what could be improved, leveraging the knowledge gained from that employee’s experience to boost future growth and performance.

Summary

For Australian businesses in the general insurance industry, shifting from a focus on retention to tenure makes more sense. It’s about ensuring employees have a meaningful and impactful time with the company and planning their exits to support the employees and the business.

By implementing practical strategies like initiative and empowerment programmes, structured knowledge transfer, flexible work options, and personalised development paths, businesses can build an environment where employees are willing to stay longer. When they do eventually move on, it happens in a way that minimises disruptions, retains valuable knowledge, and maintains service levels, creating a sustainable and resilient business model.