Staff retention in a business organisation – The secret formulae and case of Alsale
The secret to staff retention and turnover in Ghana is obviously a research question to be investigated.
As such any discussions on the topic ideally should be empirical and based on “generated facts”.
In this paper however, though some theories shall be referred to in support, most thoughts expressed are based on the 20 year experience of ALSALE and the entrepreneurial and managerial skills of the management.
On June 9, 2024, our company, ALSALE turned twenty (20) years old.
We have grown from a sole proprietorship to a limited liability company over the period.
From a rather discouraging beginning to being the most successful support services company in the Banking equipment industry in Ghana and the west coast of Africa. (In 2023 ALSALE was judged the financial / business support services company of the year).
The company has extended its growth to The Gambia and the republic of Liberia and has plans to add at least two (2) more African countries by the close of 2025.
One may ask, what the secret to the growth and success over the period is?
Many factors practically and theoretically can be attributed to this longevity and continuous relevance over the years. Theoretically, the four types of business growth are Organic, strategic, Internal, partnership or merge business growth.
ALSALE growth is more characteristic of organic growth. A good vision, good corporate governance, policy, Focus, integrity, perseverance and ethics are key in this equation.
As the founder and Managing Director who has seen the company through its various stages of development, I attribute the success to
the twin factors. First, the quality of Human resources and second, the company’s devised strategy to keep them at post.
Please do not get this the wrong way when quality of Human resources is mentioned. Contrary to popular expectation, ALSALE did not employ highly skilled professionals during its inception, at least not at the time of their employment.
However, they were made, hence their loyalty. I have been asked by friends, family, other business people and even acquaintances how ALSALE is able to get people to work with the company for a long time.
Once a friend of mine walked into the office at about 8:00 pm and saw five staff still at post working judiciously without any supervision and bent on finishing a document for submission to meet a deadline.
He asked, how do you get staff to be this loyal? I will come back to this question as the answer to it fully explains ALSALE’s experienced reason to successfully retaining its staff. ALSALE currently has fifty seven (57) staff and the average number of years of stay by staff is six (6) years.
There are at least two (2) staff who have been with the company for eighteen (18) years.
Eleven (11) of them have been around for over ten (10) years. Let’s come back to the questions “How do you get your staff to be this loyal?” asked by my friend.
I said to him, the loyalty of staff is rooted in the management style, policies and the vision sold to all staff in good faith. I cannot however discount the individual loyalty of my staff as a key factor to their stay leading to the success and growth of the company. Business owners and entrepreneurs should consider the factors below if they want to create and keep loyal staff for a long time to build and sustain a corporate culture that promote growth.
1. VISION AND COMPANY GROWTH
People will be confident to spend their working life with a company if they are presented with an idea of where the company is headed to. But that is not enough, there has to be evidence of physical structure and financial growth of the company which is tangible for such staff to relate to.
The VISION of ALSALE “to use our team of honest, skillful and proactive employee’s, to provide money processing and office equipment solutions throughout Africa and our MISSION is “to provide state of the Art money processing and office equipment solutions to customers”.
Henrietta Adjei joined the company as the second staff in the year 2005 as the secretary to the Managing Director and doubled as the showroom sales girl.
She is currently the oldest staff and arguably the most reliable and loyal.
She encapsulates the corporate culture with a lot of institutional memory.
Other staff seamlessly learn from her and follow her footsteps. She is currently the General Manager of ALSALE.
As an SHS graduate from Achimota School working at a communication center at Danquah circle at the time, she was presented with the ALSALE vision which she bought into.
She has not been around for eighteen (18) years just because of this vision recited to her verbally. She has practically seen ALSALE grow from operating from a bedroom at Cantonments Police Barracks, to a car boot, to a shop at Korle bu, to multiple shops at Korle bu and then to a 5-storey office block with a penthouse owned by the company at its present location at plot No. 91, Afadjato Street, off Outer Ring Road, New Abossey Okai (Kaneshie First Light), Accra.
Staff have to continuously see the practicalisation of the “sold” vision to stay.
These ideals on weekly basis in review meetings are broken down for staff members to understand and relate to. The practice help shapes their perspective.
2. SECURITY
ALSALE staff are protected by the company’s strict adherence to the fulfillment of statutory responsibilities. This guarantees the company staying as a going concern for a long time.
The adherence to statutory compliance provide stability in the minds of staff and gives them confidence of being part of a body which is a good corporate citizen. Payment of PAYE, SSNIT and other tier contributions and filling of other returns boost the confidence of staff. In addition to these, there’s a family atmosphere between management and staff. Staff have meals together as family. On many occasion, I personally have witnessed the General Manager, the security man and the driver eating kenkey from the same bowl as a group before or after a joint task.
3. FREEDOM AND PERSONAL DEVELOPMENT
To keep staff, they have to be given opportunity to express themselves and their talents on the job. If they decide to pursue a direction that may not be in line with the company’s vision but does not conflict with it, they should be allowed.
Over seven (7) staff members who joined the company with SHS and HND certificates were as a matter of “written policy” encouraged and supported to upgrade themselves. At the moment, the least qualification among them is a university degree and the highest being master’s degrees and professional qualification.
Over the years Henrietta Adjei the General Manager has taken the “ALSALE opportunity” to better her qualification. The company enrolled her for programmes at Ashesi university, university of Ghana, GIMPA and many others to develop her found talent. Many other staff have been supported by the company to personally develop themselves.
In fact, management sent a communique to staff, informing them that only staff with professional qualification shall head departments within the organization / company. This has inspired ambition and personal development leading to fulfilment among staff.
4. STRUCTURE AND CORPORATE GOVERNANCE
Company structure is the systematic arrangement of human resources in an organization so as to achieve common business objectives. It outlines the roles and responsibilities of every member of the organization so that work and information flow seamlessly, ensuring the smooth functioning of an organization.
MANAGEMENT STRUCTURE
Linked to freedom and staff personal growth is the availability of a well-defined structure which present a blue print for growth path. ALSALE is managed by a Board, a Managing Director, a General Manager and has six (6) departments:
Research & Development (R&D), Accounts, Support Services, Administration, Sales and Marketing and Internal audit. For each department a growth path is clear. This structure coupled with company policy document present a fair governance regime that transcends family, relationships, religion and pay. The strict adherence to the structure gives staff the confidence that opportunities are based
on meritocracy and hence stay to proof their worth to enjoy such openings.
Corporate governance theorist postulate three (3) types of theories. The agency theory, the stewardship theory and the stakeholder theory. For the purpose of this discussion the stakeholder theory which very much resonates to the ALSALE situation shall be highlighted.
With the passage of time, both the agency and stewardship theories showed their narrowness as these only focuses on the shareholders, considering them the only source that would facilitate the firm for further exploration. However, stakeholder theory stipulates that a corporate firm or entity works to improve a balance between the interests of its diverse stakeholders in such a way that each stakeholder receives some degree of satisfaction (Abrams, 1951). Therefore, stakeholders of company consist of its employees, customers, suppliers,
shareholders, prospective investors, creditors, governments, banks, society etc.
ALSALE deliberately functions to bring value to all its stakeholders.
In 1970, the stakeholder theory was embedded in management discipline and firstly defined by Freeman (1984) with a better explanation of corporate accountability as a broad perspective. Freeman (1984) argued that “a stakeholder in an organization is any group or individual who can affect or is affected by the achievement of the organization’s objective”. With passage of time, different amendments and views came under stakeholders and some authors, Alkhafaji (1989) defined the stakeholder as only those people who are interested in the survival of firm. Barry (2002) included all the members in society where the business is located, workers of firm and suppliers of raw material whereas Beauchamp and Bowie (2004) added employees, venders, the local community, or even society in the definition of stakeholders.
Scholl (2002) also added the terrorists and competitors because these parties also affect the profitability and positioning of firm.
Moreover, T. Donaldson & Preston, 1995 explained that it is management’s duty to make sensible decisions and put their best efforts in attaining the benefits that satisfy all stakeholders.
A well laid down corporate governance strategy based on structure, combined with an effective succession planning is one secret to longevity of a company even after the demise of the owner. In my next paper titled “succession planning – why do businesses collapse after the death of their founders or owners”?
I will detail the ALSALE experience and other observations and discussions on the issue as options to consider.
5. ECONOMIC NEED AND CONDITION OF SERVICE
Needless to state that, people are humans with needs and so are the staff of ALSALE. These needs have to be taken care of somehow deliberately. To narrate this, I will tell you the story of Ahmad Takyi (Don Bortey) and Richard Essuman a.k.a (Awotwe or Awoo). Ahmad Takyi has been around for seventeen (17) years and Awotwi for eight (8) years.
They were both employed as security men. Awotwi who is a night security at the head office is married with four (4) children. Two of which’s school fees are fully paid by ALSALE. In addition to his monthly salary the company offer him painting contracts at the various construction and real estate sites and pay him as a professional. Either on “by-day” or contract basis.
Don Bortey is also married with two (2) children. He has been offered a decent accommodation with air condition rooms. Again, in addition to his salary, because he is a trained steel bender, all steel bending contracts are exclusively reserved for him. His children’s school fees are also taken care of. These give them some good extra incomes to support their families.
Generally, for all staff little adjustments are made on their service conditions as changes happen in their personal lives. Adjustments such as increases in salary or allowances when one gets married or have a child or additional children, clothing allowances and the liberty to use assigned company vehicle for personal errands as and when needed.
The condition of service at ALSALE is not at the will of the Managing Director but it is a policy document, tangible for both staff and management to refer to at all times. The conscious efforts made to meet the personal economic and social needs of staff incrementally build trust, a sense of belongingness and finally loyalty and long service.
6. APPRECIATION OF STAFF
Motivation theorist like Amabile indicate that intrinsic and extrinsic motivation are important for efficiency. According to Amabile (1993), individuals are intrinsically motivated when they seek enjoyment, interest, satisfaction of curiosity, self-expression, or personal challenge in the work (Amabile 1993, 185-201). “Amabile (1996)” defined intrinsic motivation as the kind of motivation that originates from individuals' interest and involvement in the task itself.
The third component, intrinsic motivation is argued to be crucial for creativity, since it helps engage and persist in creative activities. ALSALE practicalizes these uniquely on a daily basis with words of affirmation, payment of allowances, commissions and bonuses. Again outstanding individual’s pictures are framed and hanged on company walls. All staff who have been around for ten (10) years have received both citations and cash in appreciation of their long services.
Two (2) other unique things done in appreciation of faithful staff are the use of their images for corporate branding and product promotions. Some of the products are also named after the staff. For instance, one (1) of our most sold equipment is the Herty-1 model named after Henrietta Adjei the General Manager.
On a weekly basis a review meeting affords all staff the opportunity to express their views and contribution at various levels of the company. They also get to know management and their departmental plans to help them shape their own plans for the week. The opportunity to express themselves and the fact that their opinions are not just heard but seen to have been adopted and implemented by
management, creates loyalty and organizational citizenship among staff members.
7. JUSTICE AND FAIRNESS
Quran chapter 4 verse 135 “O believers! Stand firm for justice as witnesses for Allah even if it is against yourselves, your parents, or close relatives. Be they rich or poor, Allah is best to ensure their interests. So do not let your desires cause you to deviate ˹from justice”.
Jesus (a.s.) also said in Luke 18:7-8 “And will not God bring about justice for his chosen ones, who cry out to him day and night? Will he keep putting them off? I tell you, he will see that they get justice, and quickly”.
Firm and fair delivery of justice when rules are broken instills discipline in the organization. The fact is that one cannot completely supervise and monitor all staff 24/7 at all times. It is necessary to apply the punishment firmly and fairly when the rules are broken and the reverse is true. This help guides all other staff to “stay in line”. At ALSALE this is expressed well. A number of staff who broke the company rules have been either dismissed or their appointment terminated.
This included close family relations of the Managing Director and owner of ALSALE. The discipline inspired by fairness create loyalty among staff.
CONCLUSION
ALSALE secret formulae for keeping its valued staff lie in the confidence it gives them through its vision, mission and values. The guarantee of job security by being a good corporate citizen and allowing staff members voices not only to be heard but also accepting their opinions and implementing same. Again, the existence of a corporate structure to assure succession and personal growth path to meet their socio – economic needs is a key factor. Finally, Management’s demonstration of its appreciation both intrinsically and extrinsically ultimately build strong bond as well as a feeling of belongingness.
Thank you
Wassalam
The writer, Ahmad Adade Boakye, MBA, CIPS-UK, Bsc, HND, is the MD – ALSALE Services Limited and Serving as Secretary Sanat-O-Tijarat (Sec., trade and commerce) Ahmadiyya Muslim Mission, Ghana