The Herman Group of Greensboro, North Carolina are business advisers specializing in issues concerning the workforce and workplace trends. They tell us that “an estimated 75 percent of American employers do not have a dedicated employee retention function.”
It’s a worrying statistic given the high costs of hiring, training and replacing team members, but unfortunately even organizations with well-developed policies for employing people and even for retaining customers don’t have a strategy to retain employees once they’re inside the business.
Organizations around the world are addressing a wide range of factors intended to increase retention and commitment. This is just a partial list of areas that are being analyzed for the part they play in retaining employees and it’s a useful guide to an outline for preparing your own company retention strategy.
Rewards
Contemporary reward packages reflect the individual’s contributions and requirements much more than the previous “payscale” approach. Much thought is given to putting together an attractive package of rewards that only begins with the base salary and then goes on to answer the question “What will it take to keep this person happy and working here?” Separate reward packages are developed for teams of talented people, and both individual and collective achievements are rewarded.
Recognition
Distinct from financial rewards, recognition is a key retention factor. When people feel their efforts are appreciated and can see some form of acknowledgement they have a tendency to keep on working for further recognition. They will even see additional responsibilities that demand increased efforts as an indication that their performance has been noted.
Relationships
Employers would do well to pay close attention to the relationships that can be developed in the workplace. Studies have shown that people are more likely to stay in a position where they have developed strong and meaningful relationships with colleagues, both on the job and after hours. This applies to their relationships with people from all strata of the organization, from the person at the desk beside them to their managers and even to the top management of the business.
Work Quality
Boring jobs are no longer sought, regardless of the pay or conditions. Work has to be interesting — to provide both opportunities and challenges. Gone are the days of poorly-resourced isolationist positions; today’s talented individuals want to work as part of a team and be able to grow in their positions as well as having the positions grow around them. They demand a high quality of management and ample feedback on their work.
Development and Growth
Whereas an annual two-day training program was once seen as a bit of a reward, today’s people want learning to be an ongoing part of their employment. They want their employers to add value to their own competencies and are willing to put in the overtime to develop themselves for the benefit of their organizations. Advanced degrees and professional qualifications are all part of the mix.
Internal Communications
A professionally-managed internal communications system will create stronger bonds between employees and their organization and ensure there are no unwelcome surprises to disrupt the relationship. The more people know about their employer the better they feel about working there and the more likely they will be to trust management’s decisions.
The Work/Life Balance
The overachievers of the 1980s are no longer the model for success. It’s expected that employers will recognize the need for a balance between a team member’s working and private lives. Everything that can be done for the “personal” side of an employee is seen as redressing whatever demands are made by the position. This can include flexible working hours and on-site childcare.
According to a 2000 U.S. Bureau of Labor Statistics report, by 2010 there could be as many as 10 million more jobs available than there are employees in the United States due to a combination of factors that include the much publicized retirement of baby boomers and a sharp decrease in skilled workers aged between twenty-five and thirty-four.
John A. Challenger, CEO of the Chicago-based outplacement firm Challenger, Gray & Christmas, summarizes the situation: “There is no reason that companies cannot retain and/or rebuild favor among employees.”
“We see countless examples of companies that are able to go through significant downsizings and those remaining, as well as those who were let go, still have positive feelings about the employer. It comes down to how people are treated.”
Copyright 2005, RAN ONE Inc. All rights reserved. Reprinted with permission from www.ranone.com.