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Develop an Employee Retention Strategy
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."
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