Retaining key members of staff during a downturn can be a challenge, especially in an age when pay rises are firmly off the agenda and morale is likely to be suffering.

But doing so is not just essential to helping you survive the current tough conditions, it can also save you the cost of having to hire alternatives.

"We all know it's more time and cost-efficient to retain staff than to have to constantly recruit new candidates but it is something companies often don't put enough thought into until it's too late," said Uzair Bawany, managing director of Contact Recruitment.

Contact offers the following advice on how to retain staff during a downturn:

Flexible hours
Offering flexible working hours will appeal to professionals balancing work and family commitments. It will not only show you care but will encourage loyalty.

Training
Train and up-skill your staff. Providing a sense of direction and purpose helps ensure job satisfaction so if the employee is looking the climb the career ladder make each goal and objective clear and attainable.

Company culture
When making a decision about a new role or considering whether to stay with a company, employees place as much importance on a company's culture as they do on the role itself. You need to spend time ensuring you and your management team are creating the right culture, as this will breed contentment.

Incentives
Incentive schemes - such as bonuses and company awards - create competition and can help drive employees to reach their full potential, thus improving the business productivity and boosting the individuals' confidence. Try to be imaginative and change the reward focus frequently to sustain interest and spur motivation.

Learn from those who leave
Ask all employees who leave to complete an exit questionnaire. With a few carefully worded questions you will be able to work out if there are any problems which need to be addressed.